I very interesting report by David Birch on a real life experience with Paypal Here (which launched a few weeks ago). His angle appealed to me a lot because lately I have been reading a lot of editorials on the difficulties and challenges for NFC to take off. It now became clear when he explains that the problem with NFC is that it is now working as a contactless bank card instead of leveraging the use of the smartphone. It is not doing that yet but NFC stands to beat the current consumer experience when it can really perform a “tap and go” transaction.
As a side line, please note that the Paypal pricing scheme is well positioned to defeat Visa/MC at the POS, giving the right incentives both to the consumer and the merchant. PayPal Here is still in seminal stages, but keep an eye on how it will grow in the future.