March 20, 2014 | By Fred Donovan
In another blow to adoption of near-field communications (NFC) for mobile payments, Best Buy and 7-Eleven are shutting down NFC capabilities at their stores, according to a report by Mobile Commerce Daily.
Best Buy and 7-Eleven hinted that they might launch branded plays for their mobile payments, the report notes.
“NFC was enabled at some 7-Eleven locations several years ago. As these older PIN pads have been replaced/upgraded, we have chosen not to invest to enable NFC. This decision was made based on several factors, but it is difficult to build the business case given low customer acceptance, transaction costs and other factors ,” Margaret Chabris, director of corporate communications at 7-Eleven, tellsMobile Commerce Daily.
Isis, a joint venture of Verizon Wireless, AT&T and T-Mobile, finally rolled out its NFC-based mobile wallet nationally last November after years of delay. Other NFC initiatives have been launched by Pay Pal, Google and the Merchant Customer Exchange, formed by retailers including Best Buy and 7-Eleven.
Due to the struggles of NFC adoption, Strategy Analytics cut its forecast for NFC-based mobile payments from $1 trillion by 2017 to $48 billion by the same year. The research firm cited tepid retailer adoption, slow operator rollouts and limited availability of NFC-capable handsets as the reasons for the revision.For more information