Brian Sozzi Out With Note On Near Field Communications (AAPL)

Brian Sozzi, retail analyst of Wall Street Strategies is out with a research note on Near Field Communications (NFC) after reports came out yesterday that Apple AAPL would be using NFC in the latest versions of the iPhone and iPad. In the note Sozzi writes, "Wave and pay is actually not new to the scene, rather the current incarnation utilizes NFC as opposed to RFID technology. By incorporating information from financial accounts (presumably debit/credit), and then weaving that into the fabric of specific devices, consumers have the ability to wave a card or phone to make a payment. For transactions below $25.00, generally a signature is not required, which of course brings up a major question of ID theft. Just think if you were to lose your bag or wallet in an airport, and a less than honest Joe decides to go on a spending rampage. That consumption rampage could go down as long as the card is active. From what I have absorbed, customers are not responsible for purchases made under the circumstance of theft, but it doesn't engender confidence in a new payment method." Sozzi goes on to say, "Where the technology may be a boon is for sales hungry retailers. Since there is no physical currency changing hands, that sense of buyer's remorse when spending $50.00 on a sweater is minimized. According to a study by SmartCardAlliance, consumers on average spend 20% to 30% more by using wave and pay. Now, many retailers do not currently have this technology, so an upfront investment will be needed. I expect this will be a welcome investment with a huge return on capital. Implementation basically would be to install the scanner at checkout, which is different cost wise than completely overhauling the checkout to outfit with self-serving functions (think the counters increasingly popping up at Home Depot and grocers)." Shares of Apple are up $3.70 this morning to $334.10, a gain of 1%.