EBay Inc Chief Executive John Donahoe often quotes a merchant saying NFC stands for "Not For Commerce" - and dismisses the prospects of Near Field Communication technology used to turn cellphones into mobile wallets.
He got some support this week from Apple Inc, which did not embed NFC chips into the iPhone 5.
NFC proponents had hoped Apple would endorse the technology, which passes encrypted data between devices at close range without contact. So instead of swiping a credit card, shoppers can simply wave their phones at a checkout terminal to pay for their goods.
The technology is backed by the largest U.S. carriers and credit card companies, but has failed to take off in America because merchants have been reluctant to spend money to upgrade their checkout terminals until NFC is more widely adopted.
"Anyone hoping NFC would be a reality soon is disappointed," said Sanjay Sakhrani, an analyst at Keefe, Bruyette & Woods. "Many in the industry were hoping inclusion in the iPhone would be a springboard for more adoption. This takes the impetus away."
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