How Would You Like to Pay for That? Cash, Card or Phone? Philips and Visa Usability Study Shows Consumers Like the Convenience of Contactless Payment Using Near Field Communication.
LAS VEGAS Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. -- Royal Philips Electronics (NYSE NYSE
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See: Amsterdam Exchange :PHI phi
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n See health information, protected. ) and Visa International released the results of a new usability How easy something is to use. Both software and Web sites can be tested for usability. Considering how difficult applications are to use and Web sites are to navigate, one would wish that more designers took this seriously. See user interface and usability lab. study of Near Field Communication (NFC NFC
National Football Conference ) and contactless payment Contactless payment systems are credit cards, key fobs, or other devices which use RFID for making secure payments. The built in chip and antenna enable consumers to wave their card or fob over a reader at the point of sale. technology, which showed that consumers like the convenience, ease of use and "coolness" of making transactions with their mobile phones.
NFC facilitates secure, short-range communication between electronic devices, such as mobile phones, PDAs, computers and payments terminals via a fast and easy wireless connection. Combined with contactless payment technology, NFC can enable secure and convenient purchases with a mobile device. Using an NFC-enabled mobile phone, participants in the usability study conducted transactions in several different scenarios -- making a purchase at a coffee shop, downloading a movie trailer in a DVD DVD: see digital versatile disc.
in full digital video disc or digital versatile disc
Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. store, shopping from a TV at home, and buying concert tickets from a smart poster.
Test results and implications
Participants in the usability study accepted and appreciated the concept of incorporating information transfer and secure payment functionality into mobile phones. Retail purchases with a mobile phone were particularly well received, as participants found Philips NFC technology and Visa contactless payments easy to understand, convenient and fast.
Study highlights include:
--Coolness factor of mobile transactions. Users enjoyed downloading content from NFC "smart" posters and responded favorably fa·vor·a·ble
1. Advantageous; helpful: favorable winds.
2. Encouraging; propitious: a favorable diagnosis.
3. to the idea of purchasing tickets through posters. They described the technology as "cool" and "awesome" and liked the idea of then being able to use the phone to gain entry into an event.
--Mobile payment is easy to use. Consumers found it easy to make contactless payment using the mobile phone. Learning curves were very short, with all participants interacting confidently with the mobile phone and payment terminals. Consumers found it intuitive to initiate a transaction by holding up the phone to the terminal, as an alternative to presenting a payment card.
--Mobile payment is convenient and fast. The test participants enjoyed the ease of use, convenience, speed of contactless payments on an NFC-enabled phone. They also liked the idea of not always having to carry a wallet See digital wallet. or purse.
--"Receiving" transactions should be automatic. When using the phone to make a purchase or download information, the transaction should be automatic; participants liked the simplicity of transactions that were initiated just by holding the mobile phone to an NFC-enabled reader. However, for "sending" applications, such as selling a ticket to a friend, users may prefer to initiate the transaction with a command.
--Need for clear, consistent mark. Test participants generally looked to find a mark to indicate exactly where an NFC transaction could take place. The most intuitive place for a mark was directly over the communication point. Users did not want to guess where and how to orient o·ri·ent
1. To locate or place in a particular relation to the points of the compass.
2. To align or position with respect to a point or system of reference.
3. their mobile phones to complete a transaction.
"The usability study clearly demonstrates that consumers like the simplicity of using NFC to access and securely pay for entertainment, information and services while on the move," said Christophe Duverne, vice president and general manager, Identification, Philips Semiconductors and Chairman, NFC Forum. "Now it's up to us -- the industry -- to cooperate effectively and deliver on the promise of the technology by driving standardization standardization
In industry, the development and application of standards that make it possible to manufacture a large volume of interchangeable parts. Standardization may focus on engineering standards, such as properties of materials, fits and tolerances, and drafting and building the ecosystems that will ensure commercial success. And of course, we must keep the end-user experience first at all times."
"Visa was very pleased with the results of the study, which demonstrated not only that the participants reacted positively to contactless payments with mobile devices, but also that there is real excitement among consumers," said Gaylon Howe, executive vice president, Consumer Product Platforms, Visa International. "The study provides a strong validation See validate.
validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. for Visa as we continue to drive acceptance for contactless technology, which will be critical for widespread uptake uptake /up·take/ (up´tak) absorption and incorporation of a substance by living tissue.
n. of mobile payments."
Philips and Visa conducted the study in December 2005 in Atlanta, Georgia. The research is part of the companies' efforts to develop programs that bring convenience, ease of use and security to mobile transactions. The purpose of the research was to take an in-depth look at usability and learn about consumer behavior when interacting with the technology.
There are currently several major trials underway around the world, with more expected throughout the year, to understand the benefits NFC technology can bring to people's everyday lives.
-- Philips Arena Atlanta, USA Since December 2005, Visa and Philips have been working together on a major NFC trial that has been underway at the Philips Arena stadium in Atlanta, Georgia, allowing sports fans to easily buy goods at concession stands and apparel stores. Additionally they are able to access and download mobile content such as ringtones, wallpapers, screensavers and clips from favorite players and artists by holding their NFC-enabled phone in front of a poster embedded with an NFC tag. Other partners include Nokia, Cingular, Visa, Atlanta Spirit, Chase and VivoTech. -- City of Caen, France In October 2005, Philips, in collaboration with France Telecom, Orange, Samsung, retailer Group LaSer and Vinci Park, commenced a major multi-application NFC trial in Caen in Normandy, France. During the six month trial, 200 Caen residents will use Samsung D500 mobile phones with an embedded Philips NFC chip as a means of secure payment in selected retail stores, parking facilities and to download information about famous tourist sites, movie trailers and bus schedules. -- RMV, Germany Since April 2005, Philips has been working with Nokia and German public transport network operator Rhein-Main Verkehrsverbund (RMV) to trial an NFC ticketing solution that allows RMV's customers to use NFC-enabled Nokia 3220 phones to buy, store and use tickets around the bus network in the city of Hanau, near Frankfurt. -- Taiwan Proximity Mobile Service, Taiwan Since July 2005, Philips has been working with Taiwan's Proximity Mobile Transaction Service Alliance (PMTSA) to demonstrate a BenQ prototype mobile phone capable of making secure payments using NFC -- a milestone in the plan to deploy NFC-enabled mobile phones for access to Taiwan's public transport network.
The results of Visa and Philips' US pilot project, including consumer responses, are expected this summer, providing even more insights and information about the consumer experience with NFC applications.
Visa also recently announced a significant milestone with more than 20,000 Visa contactless point-of-sale locations in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . More merchants in segments such as quick service restaurants, convenience stores The following is a list of convenience stores organized by geographical location. Stores are grouped by the lowest heading that contains all locales in which the brands have significant presence. , movie theaters and gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by stations are expected to continue to deploy contactless payment terminals, extending the potential for mobile payments with an installed acceptance base.
About Visa International
Visa connects cardholders, merchants and financial institutions through the world's largest electronic payments network. Visa products allow buyers and sellers to conduct commerce with ease and confidence in both the physical and virtual worlds. As an association owned by 21,000 member financial institutions, Visa is committed to the sustained growth of electronic payment systems to support the needs of all stakeholders Stakeholders
All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. and to drive economic growth. For more information, visit www.corporate.visa.com.
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE:PHG)(AEX:PHI) is one of the world's biggest electronics companies and Europe's largest, with sales of EUR EUR
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The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 30.4 billion in 2005. With activities in the three interlocking interlocking /in·ter·lock·ing/ (-lok´ing) closely joined, as by hooks or dovetails; locking into one another.
interlocking Obstetrics A rare complication of vaginal delivery of twins; the 1st domains of healthcare, lifestyle and technology and 159,200 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and silicon system solutions. News from Philips is located at http://www.semiconductors.philips.com.