Eric Schmidt, Google’s executive chairman, believes that a third of POS terminals in retail stores and restaurants will be upgraded to allow NFC payments within the next year, the Financial Times reports — and credit card companies will foot the bill.
“Such a development will prepare the ground for what he believes will be a ‘trillion dollar’ industry of mobile advertising and payments,” the financial newspaper continues:
Speaking at the Cannes Lions advertising festival on Wednesday, Mr Schmidt said Google was working to encourage payment processors to upgrade a third of their terminals, which will be sufficient for wide adoption of the technology.
“That money is going to be spent not by Google and not by the phone guys but by the credit card companies, because the fraud rates are so much lower,” he said. “Nobody knows how quickly this will occur but it’s in their interests to convert as fast as they humanly can.”
Because of the number of different players involved in deploying such a system, Mr Schmidt said it was impossible to make a firm forecast of the timescale.
“I judge that based on how long I think it takes, because the terminals are available now, the software is available now or this summer,” he said. “How long does it take an infrastructure player to upgrade a significant percentage of their infrastructure — it’s on the order of a year, it’s not a week, it’s not a month but it’s also not five years… It’s an educated guess.”