Consumers Want More Than Payments From NFC

Consumers want a more compelling experience than payments if they are to make the transition to mobile wallets, according to new research from Forrester.

According to Forester, the number of NFC-enabled mobile devices shipped will more than double to 100m this year, as banks and others prepare cashless wallets and contactless payment systems. Payment systems in operation include Google Wallet; Starbucks mobile payment app; PayPass from MasterCard; and the Isis venture from AT&T, T-Mobile and Verizon Wireless, not to mention new services pending from Microsoft, PayPal and Sprint.

Despite the flurry of activity, however, Forrester estimates that it will be another three to five years before NFC payment systems are in widespread international use. In addition, Forresters research suggests that payments alone are not a compelling enough reason for consumers to make a switch to NFC.

“The key long-term driver for NFC technology is that it can enable many new product and service experiences beyond just mobile contactless payments,” says Forrester analyst, Thomas Husson, author of a new Forrester report, NFC: What Lies Beyond Contactless Payments. “The list of new use cases is long: convenient transport experiences; next-generation shopping experiences; authentication and identity management solutions; or immersive marketing experiences. NFC will also expand into other consumer and workforce connected devices, facilitating content and app sharing and cross-device experiences.”

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