Factors that hinder the success of SIM-based mobile NFC service deployments

• SIM-based mobile NFC service initiatives have failed to succeed commercially.
• We present a framework that explains why these initiatives are not succeeding.
• Our framework covers multiple perspectives and provides 26 explanatory factors.
• We validate the relevance of the framework with references to several case studies.

Near Field Communication (NFC) enables bidirectional wireless proximity communication between mobile handsets. From an end user point of view, mobile NFC services are expected to replace plastic cards (for payment, ticketing, transport, etc.) by bringing improved convenience and functionality. SIM cards have been used to secure the data and applications that implement mobile NFC services. A total of 300 commercial and pilot SIM-based mobile NFC service initiatives have been reported in 2015. However, their deployment is so complex that no commercial solution has succeeded in reaching out the mass market with few exceptions in special institutional settings (e.g. Japan). Although particularly urgent to the telecom industry, existing scientific research provides limited explanations to why these initiatives are not succeeding. We present a framework that identifies twenty-six factors that hinder the success of SIM-based mobile NFC service deployments.