NFC Payments To Soar To $180bn by 2017, says Juniper
Cashless, contactless payments via NFC will soar to more than $180bn by 2017 as the technology becomes standard on handsets, according to Juniper Research - more than a seven-fold increase over payments made in 2012.
More than a quarter of mobile users in the US and Western Europe will pay in-store using NFC by 2017. North America, Western Europe and the Far East & China will contribute 90 per cent of the total market value, as smartphones with NFC payment technology become standard.
According to the report, 2011 was a watershed year for NFC payments, as technology infrastructure standards were agreed, many mobile network operators committed to the market and NFC payment pilots by both mobile operators and financial institutions went into commercial use. Most importantly, NFC-enabled smartphone models were announced by almost all handset manufacturers and Google ignited the market by launching its wallet in the US.
The report also warns that the acceleration of 2011 revealed areas lagging behind. Retailers are unconvinced of the benefits of NFC payments over existing card technologies and are unwilling to invest in contactless infrastructure so soon after the transition to CHIP&PIN.
“This is a critical time for the NFC retail payments market," says report co-author Windsor Holden. "Despite the significant progress being made today, the full potential of the market can only be fulfilled if all ecosystem players are equally committed and mobile wallet consortia remain in place. Our report analyses the various consortia models being formed today and which types are expected to endure.”