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Industry analyst Todd Ablowitz, president of Centennial, Colo.-based Double Diamond Group, LLC, has a blunt assessment of where PayPal sits on the NFC fence.

“PayPal has always been steering away from NFC,” Ablowitz says. “Their strategy is to leverage cloud-based systems for mobile payments.”

And that means PayPal wins if NFC loses any ground in the payments industry, Ablowitz says.

Ablowitz agrees PayPal easily could decide to attach NFC in some form to its cloud-based digital wallet, but it likely will prefer to watch NFC development from the sidelines.

“Clearly, they are looking to come up with something that sticks with consumers while waiting for the others to fight it out over NFC,” Ablowitz says. “In the meantime, they are trying to make the cloud the way to do mobile payments.”

Bank Technology News, February 16, 2012