In my last post 8 Online Banking Trends for 2011, the first trend was that NFC payments for mobile banking would continue to gain traction in 2011 in the United States. Looks like PayPal and Google are moving the ball along.
Bloomberg Business Week has reported that Google is considering building a payment and advertising service using Near Field Communication (NFC) on mobile phones and that it may happen as soon as this year. Even bigger is the report that PayPal may start a commercial service using NFC for mobile payments in the second half of 2011. This system would not only allow mobile payments at vendors but also allow person to person payments (P2P) as well.
This is a significant step toward mobile payments using NFC in the United States but not by banks. PayPal's nimble mobile strategy and rapid adoption of new technology is increasing its market share and influence in the payments industry. And of course, like other PayPal technology they will provide an open application programming interface (API) to make it easy for mobile developers to adopt into their applications.
PayPal has already made in roads to banks for its Person to Person (P2P) payment system based on it's API and ubiquity. USAA bank has signed a deal with PayPal to use it to provide P2P mobile services for it's clients in 2011. USAA is another mobile innovator in the US banking and mobile market.
PayPal has already signed deals with financial service providers FiServ and S1 to integrate their P2P services which will make it widely available to banks. This may be the same route that mobile NFC payments take into banks as they develop the technology. Look for more announcements as the trend continues to heat up.
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