We all know that NFC is the next big thing and that mobile payments will lead the charge, right? Well, if you ask Square COO Keith Rabois, the technology is overrated for real businesses.
“I think NFC is a technology in search of a value proposition,” Rabois said during the MobileBeat 2011 conference.
To be fair, NFC technology and mobile payment solutions like Google Wallet have the potential to destroy Square, which operates by connecting a credit card reader to a smartphone to handle transactions. With a recently-raised $100 million at a $1 billion valuation, Square has a lot to fight for in the payment space.
Rabois is convinced that a Square reader and app will be used by more real people to handle transactions than NFC will and he added that other companies are looking at NFC as a way to augment its other businesses. For example, Google Wallet could be a convenient way for people to merge their phones with their wallets but don’t forget that this will also create a wealth of data for Google that could be used to augment its advertising juggernaut.
As for Square, I believe the company will be used by more real people for the next five years or so because the value proposition is there and it’s simple for customers to continue to swipe. Despite what Rabois says now, I wouldn’t be surprised to see it integrate NFC in future versions to go along with its credit card reader.
What do you think, friends? Is NFC all hype or is this really the future of mobile payments?