Barcodes: A Renaissance For the 2D Barcode

Barcodes have long been used by businesses to help automate processes.  From applications like the simple 1D 6-bar patch barcode used as a document separator for batch scanning to more complex examples like data verification of patient wristbands in hospitals for identifying and cross-checking medication doses, barcodes are simple but yet provide significant value.  2D barcodes are increasingly used to streamline business workflows; barcodes can be affixed to office documents and then allow easy identification of the documents and enables them to be processed more quickly.  Some content management systems include the ability to “burn” into standard PDF and Office documents on export or open the ability to embed a 2D barcode with relevant metadata about the document.

But, over the last few years the hype from newer technologies like RFID have overshadowed the use of barcodes, and many thought that barcodes would be replaced with RFID.  It hasn’t played out that way, at least not yet. RFID adoption has been delayed, or at least slower than anticipated in the US and that delay is creating a bit of a renaissance for the use of barcodes, although it may be a short-lived one.

NFC (Near Field Communication), for example, is one RFID-based technology that has seen a lot of hype.  People have high hopes for it to be able to enable “fast-lane” payment at gas stations, supermarkets, and highway toll plazas.  The idea is that special NFC-capable chips will be deployed in mobile devices.  Countries in Asia have picked up on NFC and it has taken off.  An NFC chip in a mobile device can turn it into something like a smart card that allows it to be recognized in a way similar to a credit card, identity card or security device.   The problem in the US is that few phone contain the NFC chip and the infrastructure to accept NFC don’t exist, not that people aren’t trying.

NFC is almost sure to be used extensively in the US in the future.  But in the mean time, some companies are starting to exploit the use of the simple barcode to do some of the things that NFC and other RFID technologies promise.  For example, Starbucks is rolling out a capability for generating a 2D barcode on the graphics display of today’s US mobile devices.  The barcode can be scanned at checkout to withdraw cash from a prepaid account.  Target stores have also picked up on this and use barcodes in a similar way.  Renu Mobile is doing something similar that would send scannable coupons to users’ mobile devices.

Nick Holland of the Aite Group LLC in Boston said “The potential for 2D barcodes is somewhat understated at this point.  Why wait for NFC to happen when there’s technology out there where you can get 95% of the solution right now?”

2D barcodes are increasingly being used on things like business cards, postcards and catalogs.  Another example is AT&T rolling out a pilot program with 12 retailers that will use 2D barcodes on marketing and advertising materials.  Consumers will be able to add barcode reader technology to their mobile devices that will allow them to interact with the barcodes,  search for promotions and find information.

It looks like barcodes won’t be going away anytime soon, and the applications being built around them now will later prove to be a useful base into which RFID, NFC and other similar technologies will be introduced.