Feature Article

July 23, 2012

NFC Mobile Payments Set to Exceed $180 Billion Worldwide by 2017, Says Juniper

As NFC technology gains momentum, NFC payments market is expected to accelerate in the next few years. Juniper Research’s latest report on near field communications (NFC) shows that the NFC retail payments market is expected to exceed $180 billion globally by 2017, more than a seven-fold increase over 2012. The leading regions of North America, Western Europe and Far East & China will contribute 90 percent of this market value.

As per this report, 2011 was a watershed year for NFC payments.  Major technology infrastructure standards were finalized, many mobile network operators committed to the market and NFC payment pilots from both mobile operators and financial institutions transitioned to commercial service.

 Above all, NFC-enabled smartphone models were announced by almost all handset manufacturers and Google ignited the market by launching its wallet in the U.S.

However, the Juniper report cautions that some parts of the ecosystem are unprepared for the future.  For instance, the report indicates that the retailers in particular are less convinced 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. 

Education and “win-win” propositions from other ecosystem players are necessary to make retailers as committed to this opportunity as themselves, says the research firm.

According to report co-author Windsor Holden, “This is a critical time for the NFC retail payments market.  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.”

Other findings from the report indicate that more than one in four mobile users in the U.S. and Western Europe will pay in-store using NFC by 2017, and mobile network operators can offset declining ARPU as they commit to NFC-based payment projects.

Want to learn more about today’s powerful mobile Internet ecosystem? Then be sure to attend the Mobility Tech Conference & Expo, collocated with ITEXPO West 2012 taking place Oct. 2-5 2012, in Austin, TX. Co-sponsored by TMC Partner Crossfire Media the Mobility Tech Conference & Expo provides unmatched networking opportunities and a robust conference program representing the mobile ecosystem. The conference not only brings together the best and brightest in the wireless industry, it actually spans the communications and technology industry. For more information on registering for the Mobility Tech Conference & Expo click here.

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Edited by Brooke Neuman

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