If it's anything related to technology and marketing, it is highly likely that Google will lead the pack, or at least be close to the front of it. And it's the case this time, too.
Google already has Android mobile-device software that comes with this technology. In fact, it has already launched the latest "wave and pay" technology as part of its Nexus phone series. What I think we're looking at is the first large-scale launch of a long-awaited trend in payment processing. However, with all the action in the field, investors might still be wondering, what exactly is NFC?
Let me tell me about NFC
NFC is a contact-less data transfer technology where you use your smartphone to connect to another device over a distance of about four inches. You don't need to swipe your card. You don't need to carry cash. Just wave your phone near the reader and you are done. Isn't that easy? You bet it is.
That's why Google is so intent on being the early bird before other technology kings enter the arena. Google's deep push into NFC is part of a boarder strategy to offer better advertising to local store retailers by tracking the performance of their ads and customizing them for better conversion rates. Being a payment facilitator off location-aware devices is a powerful tool for a company like Google that feeds off more and better targeted data.
Google won't be charging anything for that as of now. But this is just the start. The mobile payment market is estimated to be at $618 billion by 2016, according to an Edgar, Dunn & Co. report.
What about others?
In short, we are talking about a huge segment in the IT industry that is on the verge of opening up, and most of the IT giants are already in the process of making their move to get a big piece of the cake. Google is already moving ahead full steam.
Moral of the story
NFC technology is not just any other news in the world of information technology. It has the potential to be a benchmark in the world of e-commerce, and this can change the face of many related industries as well. If you're looking for a way to directly profit from the trend, look no further than NXP Semiconductors
Of course, like any emerging area of technology, there's a rush of companies looking to catch up with NXP's NFC expertise. So if you're looking to stay updated on the company, make sure to add it to our free watchlist service to get up-to-date news as the NFC market moves away from being a budding technology, and onto mainstream investors' radar. Click here to add NXP to your watchlist.
Fool contributor Suman Chatterjee does not own shares of any of the companies mentioned in this article. The Motley Fool owns shares of Apple and Google. Motley Fool newsletter services have recommended buying shares of AT&T, NXP Semiconductors NV, Google, and Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.