Hong Kong braces for NFC

Near Field Communication to boost payments by mobile phones.

The Monetary Authority said the results of a consultancy study on developing the infrastructure needed for NFC affirms Hong Kong’s market conditions for rapid adoption of NFC services.

The study showed strong consumer acceptance of contactless payment and wide use of smartphones, and an increasing availability of NFC-enabled phones.

It also said the market is moving towards a market-driven approach in which certain industry players are expected to implement shared infrastructure to help participants offer NFC payment services that work together.

The authority said it agrees with the analysis and will continue to monitor developments in the market to facilitate infrastructure development, while ensuring interoperability principles can be achieved.

As part of the study, the consultant produced a draft set of standards and guidelines covering interoperability requirements between devices and systems, operation guidelines for NFC mobile payment services, and security measures for mobile wallet protection and payment transaction processing.

An industry working group will be formed under the Association of Banks to discuss and finalize guidelines and standards by the second half of 2013.

NFC is a set of standards for smartphones and similar devices to establish radio communication with each other by touching them together or bringing them into close proximity.