PayToo Mobile Wallet

Oct 4

Paytoo Social Media Director Response to Square COO Stance on NFC

Originally posted on TMCnet - September 29, 2011

We at Paytoo agree with Keith Rabois’ stance on NFC (Near Field Communications) in his recent interview with GigaOM founder, Om Malik. In addition to Mr. Rabois’ many reasons why NFC will not work, we believe NFC’s feasibility issues begin with the business model and proposed allocation of profits. Too many players would have to get involved, including, but not limited to banks, telecom providers, network operators and handset manufacturers. 

Distributing profits amongst all these players and keeping everybody satisfied would be extremely complicated. Sure, there are many big name companies that have already invested in NFC technology and implementation, but they are largely underestimating the amount of change that would have to occur for NFC to succeed – behind the scenes and in the marketplace. 


In its current form, NFC provides very little, if any, value to consumers and merchants. As far as consumers are concerned, there are several major issues that will keep them from adopting NFC-enabled smartphones. For one, consumers would have to switch from their current phones to one of the very few NFC-enabled smartphones available today. Also, smartphones already have a bad reputation for short battery life. Batteries will drain exponentially faster when adding NFC capabilities to the mix.

As problematic as NFC adoption would seem to be for consumers, merchants would have a much more difficult time being convinced of NFC’s practicality. NFC would require merchants to upgrade every single one of their transaction terminals and alter their entire payment process. Depending on the size of a merchant’s operation, this could be quite an expensive endeavor. Also, merchants perceive the adoption of NFC to be very risky given that there is no certainty that it will catch on amongst consumers. 

With its contactless payment sticker, Paytoo offers a proven solution that is much more worthwhile than NFC. While the use of NFC is limited to banked consumers with NFC-enabled smartphones, Paytoo’s sticker may be used by banked and unbanked consumers and can be adhered to any type of device, whether it be a mobile phone, keychain or iPod. Paytoo’s sticker is as convenient for consumers to use as it is for merchants to accept. 

The technology Paytoo employs is totally compatible with merchants’ current transaction terminals and does not require upgrades. By simply choosing to accept payments from Paytoo, merchants are able to access a wider range of consumers than ever before, and offer them an efficient payment method that does not ask them to completely change their habits. 

Paytoo’s position is advantageous because it fits naturally alongside Visa and MasterCard, the most widely accepted cards in the world. Currently, Paytoo’s solutions are thriving in foreign markets like Ecuador, Mexico, Italy and Zimbabwe where competition has yet to arrive. 

Paytoo’s plan is to control such markets and then prepare to enter the US market at full speed. Paytoo has achieved success by creating practical solutions like the contactless payment sticker that simplify processes for both consumers and merchants.