Juniper Research Slashes NFC Transaction Forecast by $70bn
- Wednesday, December 5th, 2012
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Juniper has revised its NFC growth forecast for North America and Europe because the technology wasnt included in the latest iPhone.
Although the number of NFC handsets in use over the next five years will only be marginally lower, Junipers global NFC transactions forecast has dropped from $180bn (£111bn) to $110bn.
Apples lack of commitment to NFC, the report says, has reduced retailer and brand confidence, leading to fewer Point-of-sale roll-outs and NFC-enabled campaigns. This means that many consumers are still unaware of the potentials of the technology, all contributing to a two year lag on previous transaction estimates.
Google Wallet has not gained as much traction as previously expected, which it attributed to the slowness to market of AT & T, Verizon and T-Mobiles ISIS NFC project.
However, where NFC has been trialled, including during the Olympics and in Singapore, feedback has been positive. Visa and MasterCard have also given weight to the technology by certifying NFC service solutions and data centres.
NFC usage in Japan and South Korea, where the technology is already popular, has not be affected, the report said.
“While many vendors have introduced NFC-enabled smartphones, Apple’s decision is a significant blow for the technology, particularly given its previous successes in educating the wider public about new mobile services” said report author Dr Windsor Holden.
“Without their support, it will be even more difficult to persuade consumers – and retailers – to embrace what amounts to a wholly new means of payment.”