New trends in the world of mobile technology

We're comparing quick response codes (QR codes) to near file communication (NFC). Which is better? And why?

Quick response codes: What are they?

QR codes are two-dimensional matrix barcodes presented as a pattern that resembles a crossword puzzle. Chances are, you've seen one, but didn't know what to do with it.

A conventional barcode stores up to 20 numerical digits of information. A QR code can hold up to 4296 alphanumeric characters of information, more if the characters are only numeric. Like a conventional barcode, a QR code is read by a dedicated reader, but it can also be read by a camera phone loaded with the necessary scanning software.

QR codes were created by Toyota subsidiary, Denso-Wave, in 1994 en.wikipedia.org/wiki/QR_code. Japan was quick on the uptake but this technology has only recently been successfully received in the West. The QR code is an ISO standard and Denso-Wave does not enforce its patent rights so use is free of any license.

en.wikipedia.org/wiki/QR_code#License

How it works

A consumer will scan the puzzle with a camera phone, which will then display the product information it has downloaded, or it may open a website, send an email, SMS or instant message.

Using the technology in reverse, a passenger can receive a QR code on their phone, via MMS, which can be scanned like a boarding pass at security points and boarding gates. The possibilities are endless. Take a look at a guide to mobile barcodes here: mobithinking.com/mobile-barcode-guide.

Near filed communication: What it is?

NFC does pretty much the same as a QR code, just in a different way. NFC is based on RFID technology which uses radio frequencies for the transfer of data. This is achieved by placing the mobile device in close proximity (10cm) to the information sender, chip or tag.

Then, the mobile phone generates a radio frequency field that uses magnetic induction to power the passive target device. Once the tag is powered, it transfers instructions to the phone to display something, open a web site, or send an SMS, email or direct message.

How it works

A consumer will wave their NFC phone at a tag on a shelf and receive nutritional information about the product or pick up an m-voucher. At the same time, the marketing department will be analysing the enquiries by time, store and area.

That said, currently, the interest in NFC is focused on its ability to perform more complex tasks between two powered devices. The major focus, and market hype, is on m-payment, which will make it possible to pay for groceries by waving your phone at the till.

What to expect

The payment application will take some time to come to fruition. The banks, credit card companies, network operators and handset manufacturers will fight it out for control of this new money transfer mechanism - and there also needs to be agreement on a standard protocol across all devices.

Android/Google and Apple have announced their intentions to begin shipping NFC enabled phones. Nokia, desperate to regain lost ground in the handset market, is following suit along with Microsoft. Blackberry (RIM) and Visa have also emerged as early participants in what is speculated to be a US$1,13 trillion (about R7.6162 trillion) mobile payment market by 2014.

www.mobiledia.com/news/82265.html

QR vs NFC

Although QR codes are not new, consumers still need to be educated about them - take up is poor not only in South Africa but in many Western countries too. In addition, the scanning software needs to be original equipment on handsets before widespread adoption will take place. One pro of QR codes is that they are cheap to create and easy to transfer (as tickets and vouchers) to mobile devices, and have many applications.

On the other hand, NFC is far easier for the consumer to use and tags can be placed anywhere - they can even be printed onto FMCG products or flyers, using a special silicon ink. www.nearfieldcommunicationsworld.com/2011/01/05/35557/inside-and-kovio-add-nfc-support-to-ultra-low-cost-printed-rfid-tags/.

The major barrier to NFC is universal standardisation and adoption by every stakeholder. The RFID technology used in NFC is (as with QR codes) not new, but in this application it requires that hardware be placed into the mobile device by the manufacturers. This would be done when the networks order the phones. The problem is the networks would rather secure the technology into the SIM cards, and the banks are also trying to secure some revenue stream.

The verdict

While the two are not necessarily competitors, the QR codes' downfall lies in its education and hardware requirements, although it has been very successfully adopted in warehousing and logistics.

NFC is easier for consumers to use and has additional functionality. Perversely, the huge, money driving NFC is hampering its standardisation and adoption by the market.

The two may well thrive together, but chances are that the technology with the greatest commercial application will attract more development attention. NFC could well smother QR codes within the next five years.

However, let's not forget the 80/20 principal. While the techno-giants battle it out for control, the humble SMS still manages to deliver 80% of the functionality to 100% of mobile handsets...makes you think. I hope.

PS: Google has recently announced it is to team up with MasterCard and Citibank to launch a wave-to-pay for Android. There are exciting times ahead.

mashable.com/2011/03/28/google-mobile-payments-android/