Long Runs, Cash-Strapped Friends and Bulging Wallets, Among Many Others

After months of teasing consumers with leaked release dates, and repeated delays to build up demand, Verizon finally decided to release the Samsung Galaxy Nexus on December 15^th.  I picked mine up the same day and was immediately blown away by how far Android has come since my previous phone, a first generation Droid running Froyo.  It was like a light switch had been flipped for me and I finally saw how the other half lives (you know who you are, iPhone users).  But aside from the OS, the device itself continues to amaze me with how much goodness is packed inside.  In particular, one little tidbit tucked away in there has gotten me thinking about all the possibilities.  I’m talking about the NFC chip.

Last week’s Top 16 2012 Tech Predictions blog post alluded to the application potential of NFC.  I’m personally very interested in following the developments around mobile payments because I can directly envision its applications making my daily life a little easier.  For example, as a long-distance runner, I try to limit how much stuff I carry with me for 10, 15, 20 or more miles.  I already carry my phone with me as a GPS-based distance recorder (but strangely, not for music.  I can’t deal with headphones while running). So why not get double duty out of it as a virtual wallet?  I also always seem to find myself in that odd spot at restaurant meals with friends who are perpetually short a few dollars in cash. With a virtual wallet, I’m happy to spot a few bills … just zap me some funds through your phone!  And at grocery stores, if I can not only eliminate the loyalty cards clogging up my wallet, but also skip the extra step of presenting the cards in addition to my payment method, I’m one step closer to being out the door. And what if those store purchases could automatically roll up into my spending categories on Mint.com so I can see exactly where my money is going? This is all today’s technology. There’s nothing magical about any of this.  The only thing that has barred widespread adoption has been a fractured banking ecosystem.

Google has aligned itself with Citigroup, Mastercard and Sprint to bake up Google Wallet. Meanwhile, Verizon, T-Mobile and AT&T are brewing up their own NFC mobile payment system, Isis. Keep your eyes on the impending battle between these players in 2012. Both systems are backed by deep pockets, and as with most competing technologies vying to be the standard bearer, there can only be one winner. The retail infrastructure required to make either system a success is going to be hugely expensive, and nobody wants to buy it twice.