About The Blog

Debate at the intersection of business, technology and culture in the world of digital money, both commercial and government, a blog born from the Digital Money Forum in London and sponsored by Consult Hyperion



  • Add to
Technorati Favorites


  • Creative Commons

    Attribution Non-Commercial Share Alike

    This work is licensed under a Creative Commons Attribution - Noncommercial - Share Alike 2.0 UK: England & Wales License.

    Please note that by replying in this Forum you agree to license your comments in the same way. Your comments may be edited and used but will always be attributed.

« Blatant plug for new journal | Main | Who cares about payments? »

NFC! It is cool!

By davebirch posted Aug 23 2006 at 12:19 PM
[Dave Birch] The chap who runs Philips Semiconductors, Frans van Houten, recently said that half of all new mobile handsets will come with NFC by 2010. Good news for Philips, who make the NFC chips. Then he sold just over 80% of the company to a consortium led by U.S.-based Kohlberg Kravis Roberts & Company who, if I remember correctly (and a quick google reveals that I did), were the eponymous “Barbarians at the Gate”. So how are contactless and NFC looking?

Technorati Tags: , ,

Overall chip sales are down, but contactless is looking good. Philips Semiconductors shipped 142 million contactless chips last year, up nearly 49% from 2004, according to our friend at Frost & Sullivan, Anoop Ubhey. The majority were MiFare smart memory chips (used by transit operators) but about 13% were contactless microprocessor used for electronic passports, government ID cards and contactless credit or debit cards. But what about our digital money favourite next big thing, NFC?

Well, things look good for NFC, even if it may mean fewer chip sales for KKR (*). Pilots and trials are continuing as far afield as China, where testaments abound. Mr. Xu, a “volunteer consumer” in the China Mobile NFC pilot in Xiamen said: “With the integration of E-Tong Card to my mobile phone, I feel so convenient to make payment. It is cool! I hope it will be put into commercial use soon.”

Mr. Xu need not worry: since we are told that the purchase by the KKR consortium will not affect the Philips Semiconductors' strategy or products, including the chips for contactless cards and NFC phones. NFC will, indeed, be put into commercial use soon.

(*) The spread of NFC means less overall chip sales because you will use your phone as your contactless debit card, contactless transit card, contactless mobile pre-paid card and so on. Therefore, the phone's NFC chipset may well replace a number of other chips.


TrackBack URL for this entry:

Listed below are links to weblogs that reference NFC! It is cool!:


I've got a regular KKR visitor on my personal blog. Wonder if he/she ever nips over here?

The comments to this entry are closed.