Hong Kong ready for more NFC mobile payments

Some 40% of smartphones will be NFC-enabled by yearend.

The Hong Kong Monetary Authority believes Hong Kong is ready for “Near field communication” or NFC mobile payment services. Its role in advancing NFC is to establish policies and security measures in NFC mobile payment service developments. HKMA said 85% of local non-cash transactions are already contactless.

NFC enables smartphones and similar devices to establish radio communication with each other by touching them together or bringing them into close proximity.

HKMA said smartphones are expected to contribute 90% of Hong Kong's new mobile phone shipment in 2013. The rising number of NFC-enabled phones means this mobile payment service will become more accessible.

HKMA is also working with the Hong Kong Association of Banks to establish local security guidelines and standards for NFC mobile payment service, and a document is expected to be completed by the second half of this year.

NFC mobile payment services are considered more secure than traditional credit card transactions because information like the card number and expiration date are not displayed.