During this QuickCast, VDC's John Shuster provides some food for thought for those in the supplier, developer and B2C communities in regards to fostering growth in consumer-level NFC adoption and discuss some of the major findings from VDC's recent survey of consumer end users of NFC.

1. AutoID & Transaction Automation Practice
John Shuster– Analyst
WEBCAST
NFC & The Consumer: How and Why it’s
December 2011 Used
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2. Recording Available
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6. Today’s Speaker
John Shuster
Analyst
John has over four years of experience in strategy and research consulting, private
equity and project management. At VDC, John is an analyst in the firm’s Auto ID
practice and covers the markets for NFC, emerging RF solutions and Customer
Engagement/Retail Automation Technologies. Prior to working as an Auto ID
analyst, John worked in VDC’s Mobile and Wireless practice. John has also worked as
an Associate at Stax, Inc., a Boston-based strategy consulting firm, focusing on
investment diligence and market opportunity assessment engagements. During his
post-graduate studies, John completed a year-long corporate residency program at
BV Investment Partners (formerly Boston Ventures), a middle-market private equity
firm, where he was responsible for supporting operations in the finance and
accounting department. John is a graduate of Dickinson College (BA, English) and
Northeastern University (MBA, finance).
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7. Today’s Agenda
NFC Regional Adoption
Leading Consumer NFC Applications
What NFC Devices are Consumers Using?
Consumer Usage Expected to Expand & Evolve
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8. NFC Regional Adoption
NFC Consumer End-User Sample  VDC’s 2011 NFC Consumer End-User
Segmented by Region sample is representative of global
N = 1006 adoption of this technology
 APAC has established contactless
infrastructure in a number of
countries, with Japan leading the way
25.2%  Regional concentrations of NFC
activity exist in EMEA and are
44.7% expected to spread
 NFC activity in the Americas remains
constrained by limited infrastructure
and device availability, but the future
looks promising
30.0%
Asia EMEA Americas
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9. Leading Consumer NFC Applications
 #1 application cited
Contactless/Mobile  Used by 56.1% of respondents
Payments
 Current usage skewed heavily towards APAC & parts of EMEA
 Adoption expected to scale as devices, infrastructure proliferate
 Selected by over 47.5% of respondents
Bluetooth Pairing  Relatively consistent usage across regions
 “Low hanging fruit” opportunity
 Cited by 46.7% of respondents
Mobile  Usage skewed towards APAC; EMEA follows, Americas a distant 3rd
Promotions/Offers  Strong opportunity for developers and B2C enterprises
 As NFC enabled devices hit the market, Americas expected to catch up
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10. What NFC Devices are Consumers Using?
Global Respondents NFC Device  NFC is largely about mobility—leading
Preferences consumer-facing applications are
N = 1006 mobility driven—this is reflected in
50.0%
45.8% consumer device preferences
45.0%
 The majority of consumer NFC usage
40.0% centers around smartphones—all
major handset manufacturers are
35.0%
supporting NFC, except one…
27.2%
30.0%
 Even in cases where a stationary form
25.0% factor is the primary NFC device, it is
18.8%
likely being used or paired with a
20.0% mobile device
15.0%
10.0%
6.0%
5.0%
0.0%
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11. Consumer Usage Expected to Expand & Evolve
Across all Applications, NFC Usage Expected to Grow
 Increased adoption as device availability improves
 Frequency of usage will also increase
 However, lack of supporting infrastructure could slow growth
Current NFC Users are Looking to Use it More Broadly
 Broader set of applications will be adopted by NFC-using consumers
 Respondents cited interest in using NFC across a diversity of places, including:
o Stores/Shopping Malls
o Restaurants
o Hotels
o While Travelling/Commuting
Consumer Interest in NFC is Strong, but Must be Nurtured by Suppliers, Developers
and B2C Enterprises via:
 Infrastructure investment
 NFC business model development
 Tracking, quantifying and proving ROI
 Application development & innovation
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12. Thank You for Attending this VDC QuickCast
For more information please contact:
John Shuster – Analyst
jshuster@vdcresearch.com | 508.653.9000 x133
Sherrie Nankin – Account Director
snankin@vdcresearch.com | 508.653.9000 x119
For complimentary insights and marketing data:
http://blog.vdcresearch.com/autoid
© 2011 VDC Research Webcast
AutoID & Transaction Automation
vdcresearch.com