As Bloomberg states: “The adoption of NFC payment systems will hinge on the availability of phones with the technology.”
At the moment, however, only a few smartphones currently have the revolutionary NFC chip within them that facilitates mobile payments.
But that’s changing fast. And by investing in the source of NFC technology, you can capitalize on the uptick in mobile payments and the strong growth of smartphone sales at the same time.
Enter NXP Semiconductors (Nasdaq: NXPI). It’s a huge player in the mobile payment market, as it manufactures the NFC chips in smartphones. The company has partnered with Google and the Nexus S and Galaxy S II smartphones already have NXP’s chip built in.
Plus, if Google’s recent bid to purchase Motorola (NYSE: MMI) gets approved, NXP’s chips will be present in Motorola Droids.
Not only that, the chips are ultra secure – a crucial element, given that the NFC chip stores your credit card information locally. This has led to fears that personal information would be vulnerable to hackers or thieves.