Advertisers love the idea of mobile payments. That’s because using NFC for retail transactions is seen as “a way to connect the physical world with the virtual world,” said Todd Ablowitz, a mobile payments consultant with the Double Diamond Group.

For advertisers trying to reach a certain demographic–aka you–it’s the perfect opportunity: knowing where you shop and when. If Google knows where you shopped and when, it can target marketing and advertisements to you even more accurately. And the company could potentially ask for more money from the businesses to which it sells ad space.

But it’s clear the potential for many interesting ways to use NFC is there, and the technology could be very useful for regular people. No, we’re not going to put our wallets stuffed with cash and credit cards away for good, at least not in the next few years. But the pieces to getting there are coming together.

“The things that will come out of this…I look at it a lot like the Internet. I do think it has that kind of size,” Ablowitz says he tells his clients when consulting on the topic of mobile payments. “Which is why people who are giddy about it and say it’s going to take over the world overnight are not accurate…You have to be sober about the length of time for things like this to develop.”

Cnet News, April 7, 2011
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