MyGlobalCity

More RFID Technology Purchases May 10, 2006

In my last post, I talked about how a number of technology companies are buying up their suppliers. Given that RFID and NFC technology is behind most of the new digital touchless payment systems being tested in many parts of the world, it’s not suprising, then, that a company like NCR Corp (National Cash Register Corporation) recently purchased IDVelocity LLC, an RFID provider.

NCR has long been a producer of ATMs (automated teller machines), sometimes called ABMs (automated banking machines). Their technology is often branded with the logos of banks, credit unions, and other financial institutions, and used all over the world.

However, with the impending widespread use of digital money and touchless payment systems all over the world, NCR would obviously have to redefine itself. What better way, obviously, than to become a producer of smartcards and various devices that use RFID technology? Thus, purchasing a company like IDVelocity makes great business sense.

As I’ve said before and will say in the future, we’ll likely see all kinds of similar technology-company purchases over the next few years, given the expected growth in the RFID market. Other candidates to play the role of purchaser includes healthcare technology manufacturers, pharmaceutical companies, and HMOs. This is because the RFID market in healthcare is expected to grow from US$90M in 2006 to $2.1B in 2016. (The article linked to is a summary of a longer article at IDTechEx.

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