Abstract

Near Field Communication (NFC) is a very short-range type of radio communication that is compatible with other contactless communication technologies. It provides enormous possibilities, particularly given that it does not require any particular communication infrastructure. NFC technology has found possible application in contactless cards and mobile phone devices as a communication infrastructure which provides a platform for the development of NFC-based business services. This paper proposes a novel approach to forecasting the number of new users of NFC mobile phones based on fuzzy logic and the Norton-Bass diffusion model. The proposed approach is demonstrated through the case study.

Highlights

  • 1.1 MotivationMobile payment is a relatively new area of research

  • Can we expect significant customer transition from Near Field Communication (NFC) contactless cards to NFC mobile phones? –– Beside traditional forecast models, which model is the most appropriate to combine prediction theory and social factors for assessment of the number of users switching to NFC mobile phones? This paper proposes a novel approach to forecasting the number of new users of NFC mobile phones based on fuzzy logic and diffusion theory

  • After fuzzy rules are formed, it is possible to determine the necessary percentage of users that will make the transition to the new mobile NFC technology

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Summary

Motivation

Mobile payment is a relatively new area of research. mobile payment systems provide flexibility and convenience, they still cannot compete with the traditional payment services [1]. The technology supporting the mobile payment systems has evolved in the last few years, following the emergence and expansion of a full new range of mobile and smart devices, some of them already using technologies like Near Field Communication (NFC) [5]. As well as in small isolated markets, the basic assumptions are that the NFC technology migration from contactless cards to mobile phones will be gradual and will depend on two very important factors: –– The development of the NFC mobile phone market, i.e., the increase in the number of mobile phones with NFC chips and interest of end users to have such phones, and –– Awareness of users who may be interested in the transition to a new technology, driven by the benefits it offers them, in terms of multi-functionality and security. There are no papers dealing with consumers’ willingness and intention to switch from one kind of NFC technology to another, i.e., from NFC contactless cards to NFC mobile phones, and that was the motivation for this paper

Research objective and questions
RESEARCH BACKGROUND
Fuzzy logic
Diffusion theory
ESTIMATION OF RELEVANT PARAMETERS
Data gathering
Choice of input variables
Input membership function
FORECASTING OF ADOPTION OR SUBSTITUTION
RESULTS AND DISCUSSION
NFC contactless card
EVALUATION OF FORECASTED RESULTS
CONCLUSION

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