(This is the second part of the Q&A with Anita Campbell about challenges of RFID industry)

How do you see the future of RFID and its applications?

In my view some of the fastest growing areas applying RFID will be:

(1) Smart cards and contactless payment systems: Today this is the largest single RFID market worldwide, according to Smart Labels Analyst. We will see many more uses of RFID in ticketing for mass transit, ticketing at sporting events such as the 2008 Olympics in Beijing, and for access cards to corporate and organizational campuses. We are also seeing RFID grow rapidly in the area of toll road passes, credit cards and key fobs that can be used to pay for items. Studies have shown that in North America and parts of Europe, consumers are increasingly moving toward electronic forms of payment such as credit cards and debits cards, instead of cash or checks. For instance, a 2003 study by Dove Consulting showed that only 47% of in-store transactions were made with cash or check. That pace will accelerate as consumers begin to experience the convenience, speed and simplicity of using RFID-enabled payment options.

(2) Supply chains: By supply chains, I mean a company's own supply chain that they implement RFID in, not a "slap and ship" implementation to meet another company's mandate. This will take a few more years before the costs come down enough, and companies figure out how to make RFID pay off for them, before we really start to see the true potential of RFID in supply chains. Right now it's mostly scattered pilots and studies that we are seeing, or very limited implementations such as to meet a mandate that the company has no choice but to do.

(3) Healthcare: Healthcare, and I include pharmaceuticals in this, will be another big area in the future, as healthcare providers catch on to the benefits of RFID. I think we will see a wide range of implementations, everything from preventing counterfeit pharmaceuticals, to automating hospital testing procedures using RFID.

(4) Military: the U.S. Department of Defense is already a big user of RFID, and I predict even larger demand for RFID. Much of this will be in logistics, including tracking of military assets and ensuring no interruptions in supplies to troops and military installations. Also, security is another area where military implementations will lead the way.

(5) animal Tagging: Animal tagging to prevent contamination of the food supply is already a significant market worldwide. With emphasis on avoiding Mad Cow disease and other fast-spreading diseases in this day and age of easy and widespread global travel, we should continue to see emphasis on animal tagging.