Mobile phones have been described as "the one thing that is always with you" and Mohammad Khan, the president and founder of near field communication (NFC) company ViVOtech, is trying to make it the only thing you need with you.  His company is pushing to enable mobile phones to have the power to purchase and the security to protect "the wallet", as well as letting retailers using these technologies to enhance their customers' shopping experiences and even provide marketing options. Khan recently talked to Retail in Asia about how his latest system of mobile commerce as well as its supporting hardware and software can usher in a new wave of personalised shopping. He also shared his latest thoughts on the NFC technology and highlighted the joint Google wallet roll-out in this interview with RIA. 

RIA: What is NFC technology? How is it applied in retail and how is it accepted in Asia?

Mohammad Khan (MK): NFC is a short-range wireless technology that allows for transactions, data exchange, and wireless connections between two devices in close proximity of each other, typically a mobile device and a reader. Such phones allow retailers to implement mobile contactless payment and take advantage of attendant opportunities for new payment options. In the Asia- Pacific/Japan region, mobile contactless payments are accepted in most transit trains and some stores. Consumers with NFC-enabled phones can pay for a ride on the rapid transit system or for a meal at fast food restaurant using their phones.

RIA: What other applications do you think retailers might be interested in?

MK: There are three different categories of mobile retail applications that can be used by merchants: mobile marketing, mobile commerce and mobile operations.

Mobile marketing applications focus on advertising, marketing, and increasing brand awareness and loyalty. They also provide product information and shopping tools that can be used to enhance the retail experience. Mobile retail marketing applications can support the following areas: brand marketing, customer service information, shopping assistance tools, product information, loyalty programmes, promotions and coupons.

Mobile commerce (m-commerce) applications encompass traditional mobile and e-commerce options, as well as the newer mobile payments using remote or contactless methods.

Mobile operations applications are tools used by retailers and associates that can lower costs and increase service for retailers. These applications focus on the following functions: mobile point of sale (POS), work force management, communications and approval workflow.

RIA: What is the potential for mobile technology in retailing?

MK: To illustrate the potential for mobile technology in retailing, the following is a hypothetical example of the day in the life of a consumer: 

Eric's NFC-enabled phone provides him with additional services in the retail environment. Upon entering a shopping centre, he touches his NFC-enabled phone to a conveniently located kiosk and receives the following incentives: shopping centre loyalty points for returning to the centre, information linking the current coupons on his phone to stores within the centre offering those goods, and possibly additional discounts and special offers customised to his profile.

While walking through the centre, Eric notices a "smart poster" offering him a discount on a product that he has been considering. Eric touches his NFC-enabled phone to the poster to retrieve the coupon.

Eric then enters a store to shop for an item that he wants to buy. He sees a number of competing products on the shelf but does not know which to choose. He uses his mobile phone to read the products' contactless tags (barcodes, quick response codes). The phone reads the codes and links provided with the products and displays product information and customer reviews on the retailer's web site. Eric also checks an independent web site that he regularly uses for more product information. Armed with this detailed information, Eric selects a product. At check out, he accomplishes the following by simply touching his phone to the POS terminal:

• Automatically redeems coupons matched to the item he is purchasing
• Makes the purchase
• Receives more special offers for future purchases, customised to his profile

Eric can check the history of purchases and remaining loyalty points on his phone whenever he wants. He can share information and coupons with friends who have NFC-enabled phones, where permitted by the coupon issuer, by touching his phone to theirs.

RIA: As an end-to-end provider of NFC hardware and software, how does ViVOtech help retailers in their business?

MK: ViVOtech provides the NFC POS readers, check-in/shelf NFC tags, mobile wallet and backend software for merchants to enable rich mobile commerce solutions for in-store payment, loyalty, marketing, and merchandising. Consumers will be able to tap their NFC phone in mall or at the entrance of a store enabling a merchant to send them personalised coupons and offers. They could tap their NFC mobile phones on NFC tags to get product information, expert and user reviews, and discount availability benefiting from a richer more personalised and informed shopping experience using their NFC mobile phones.

Equally, solutions provided by ViVOtech give ample opportunity for merchants to influence the consumers to up sell and cross sell when they are in or near their store.

ViVOtech software technologies enable one-tap check out for payment, coupons and loyalty card. This is a technology that Google is also using for its Google Wallet offering.

RIA: ViVOtech has worked with Google with the Google Wallet rollout. Can you explain more about the partnership?

MK: ViVOtech technologies are being used by Google Inc. to give Android phone owners the ability to make payments and take advantage of real-time in-store offers and loyalty programmes at POS.

ViVOtech is providing NFC POS readers for merchants that want to accept Google Wallet payments and marketing solutions.  In addition, ViVOtech has worked with Google, merchants and POS software vendors to provide integration between NFC POS readers and current POS software.  ViVOtech's solutions combined with Google Wallet enable one-touch technology for redeeming coupons, participation in loyalty programmes, and making payments.

RIA: How is ViVOtech performing in the contactless market in the US and Asia?

MK: ViVOtech has over 900,000 NFC contactless readers shipped in 35 countries with 80 percent market share of installed base in US and Canada, and 70 percent market share of installed base in Asia and Australia accepting MasterCard PayPass and Visa payWave payments.

RIA: What gives ViVOtech the competitive edge in the market?

MK: ViVOtech enjoys the benefit of being first to market with over 10 years of experience driving growth and adoption of NFC technology solutions. ViVOtech has been the thought leader in enabling informed and personalised shopping experience for consumers in physical merchants' environment. 

ViVOtech NFC software and system solution not only enables American Express, MasterCard and Visa branded contactless and NFC payment programs, but also enables merchants to drive their own NFC enabled loyalty, prepaid, gift card, marketing and merchandising programmes. ViVOtech NFC software enables merchants to drive traffic to their stores, offers customer powered check-in, helps merchants to up sell and cross sell their products when the customers are in their stores while better value to customers to informed and interactive shopping experience.

ViVOtech has also more than 60 patents granted and pending in these areas to maintain its competitive edge in the market.

RIA: We've heard that ViVOtech is planning an initial public offering (IPO) as early as 2012. What is the reason for this move?

MK: Yes, there is a speculation in the market for ViVOtech to go IPO in 2012. Such might be possible if market conditions are right and NFC mobile commerce deployments accelerate. In such case, IPO could be a way for ViVOtech to fund such growth.

RIA: Where do you see the future of mobile commerce in Asia going?

MK: Asia will be the biggest user of mobile commerce solutions in coming decades enabling consumers to enjoy informed shopping experiences in physical stores to find the right products with the right price as well as personalised services using their mobile handsets. Billions of consumers, who are already using prepaid mobile phones and do not have a payment card or bank account today, are going to start enjoying the convenience of electronic payment like the other two billions that enjoy today worldwide – plus an informed shopping experience!

Mohammad Khan is the president and founder of ViVOtech Inc. Khan held several engineering, marketing, and business development management positions during the 15 years he worked with VeriFone. In 2006 Khan was recognised as a leader of the Electronic Payments Industry by the Transaction Trends Magazine and in 2005 as a "Mover and Shaker" of the Electronic Payments Industry by the Transaction World magazine.

Founded in 2001, ViVOtech is privately held and headquartered in Santa Clara, California, US. The company is a market leader in contactless/NFC payment software, over the air (OTA) card provisioning, promotion, and transaction management infrastructure software, NFC smart posters, and contactless readers/writers. The company also has other offices in Asia and in Europe. To learn more about this company, visit ViVOtech.

CEO Talking Shop is the Retail in Asia section devoted to interviews with brand CEOs and retail industry leaders.