Near Field Communication Stocks:
NFC (near field communication) is a communication technique that allows two electronic devices to interact while they are in close contact.
The term “near field communication” refers to communication between two electronic devices that are within 4 cm of one another.
- It differs from WiFi or Bluetooth communication in that its physical range is significantly less.
- It’s also made to send tiny files rather than massive, continuous broadcasts.
Radio frequency identification (RFID) is the foundation of NFC technology.
Contactless payment options like Apple Pay and Google Pay are a wonderful example of near field communication.
We should anticipate NFC technology to become considerably more ubiquitous as our economy becomes more digital. Instead of having actual identity cards, we might utilise our smart gadgets to identify ourselves.
In the worlds of gaming and esports, NFC may be used in a variety of ways.
In 2015, the value of the worldwide Near Field Communication stock (NFC) Market was estimated to be US$ 4.80 billion. During the projection period, the range is expected to reach US$ 47.43 billion. Due to the rising penetration of smartphones in the emerging economy, the industry is poised for remarkable growth throughout the predicted period. With the advent of Apple Watch and e-wallet, the widespread use of mobile payment services has led to more stringent Point of Sale operations (POS).
Payment processors, banking units, and payment gateways are expected to improve their abilities to embrace the new enhanced technology. Customers may now pay for services using mobile devices or cashless payment methods thanks to the introduction of mobile wallet services. This has also aided the growth of the market for near-field communication.
The growing demand for near-field communication-based payment outcomes has prompted manufacturers to create a more advanced version of the digital payment platform, thus propelling the near-field communication market forward. The introduction of mobile wallets such as Samsung Pay, Android Pay, and Apple Pay, which allow users to pay with their phones rather than using cards or other cashless payment methods, is expected to further accelerate the growth of mobile payments.
As the number of vendors grows, it is expected that knowledge of the technology will rise, as will the development of near-field communication arrangements. The market’s evolution will continue to be dictated by the rising need to lower ownership costs and enhance appropriateness.
The global near field communication (NFC) market may be broken down into three categories: application, product, and region. Product Identification, Medical Devices, Ticketing, Transaction, Data Sharing, Access Control, and Others are the different types of applications. NFC Readers, NFC ICs, SIM Cards, NFC Tags, NFC Covers, and SD Cards are the different types of products.
Lookout for the Region:
North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa make up the worldwide near field communication market. The Asia Pacific market for near field communication was expected to continue to be a significant source of revenue. In 2015, it was responsible for more than 20% of the market. The expanding use of near-field communication technology is expected to be fuelled by the increasing penetration of tablets and smartphones.
The rapid spread of mobile payment systems has accelerated collective activities among company members, slowing technological advancement. Multinational banks have been investing heavily in the development of a mobile payment network. This is also expected to boost the application industry, with merchants and financial service providers working together.
Near-Field Communication Stocks to Buy
1. NXP Semiconductors is a semiconductor company based in the Netherlands (NASDAQ: NXPI)
This stock is one of the finest places to start if you want to invest in near field communication. They are a prominent supplier for electronics businesses all over the globe and were one of the original developers of NFC technology. NXP Semiconductors manufactures parts for a variety of electrical devices.
This comprises tags and readers, as well as other NFC components. They also produce NFC sensors and wireless charging components for IoT devices. With activities in more than 35 countries, the firm is in the Netherlands. They provide components to some of the world’s top smartphone and electronics companies.
This stock has had a fantastic year, with share prices rising steadily. They increased by over 121 percent year over year, reaching a five-year high in early April. NXP Semiconductors also offers a dividend yield of 1.13 percent.
This means that, in addition to generating consistently high returns, it might be a suitable alternative for income investors. NXP is one of the world’s leading semiconductor chip providers, in addition to its NFC devices. The demand for semiconductors has increased dramatically in the last year, and it does not appear to be slowing down anytime soon. As a result, NXP stock might be a good long-term investment in our more digital future.
2. Square Inc. (NYSE: SQ)
Square is a financial technology firm that specializes in POS and payment processing systems for small companies. They’ve also lately expanded to provide small businesses with payroll and other financial services.
NFC technology is used in many of their point-of-sale systems for contactless mobile payments. Their technology can turn a smartphone or iPad into a payment processor. Apple Pay and Google Pay processing are available on their newest readers. Because of the pandemic’s problems, many customers have come to anticipate contactless payment solutions when shopping or dining out. Small businesses may use Square’s technology to provide these contactless payment options.
Is it a Good Idea to Invest in NFC Stocks?
The industry of near-field communication is still in its infancy. Near-field communication technologies like radio frequency identification have just scratched the surface of what they can achieve.
Investing in Near Field Communication stock firms now might pay off handsomely later if the technology becomes more widely used. Mobile payments and ticketing systems are the two most prevalent applications for NFC technology right now.