NFC mobile payments, for low transactions anyway, are expected to exceed $75 billion globally in the next five years, according to a new study from UK-based Juniper Research. In the second report in its Mobile Payment Markets series, the company found that there is a “significant opportunity” for NFC mobile payment services, chips, phones and supporting services as the market reaches its tipping point over the 2011 to 2013 period.
But, as the report’s author cautioned: The industry still needs “to convince both consumers and merchants of the merits of yet another payment mechanism on top of cash, checks, credit and debit cards, and to allay understandable (even if unfounded) fears and skepticism about the security of the mobile wallet.”
The study believes NFC will transform the mobile phone into a mobile wallet payment tool that will be used by more and more people in the future.
The report’s author, Howard Wilcox, said: “NFC will achieve traction initially in developed countries and regions, with Japan already leading the way with FeliCa-enabled phones. North America, Western Europe and countries such as Korea, Singapore and Australia are likely to see service take-up.”
Highlights from the report include:
–Global annual gross transaction value will grow over 5 times between 2011 and 2013
–2009 will see limited numbers of NFC devices shipped (except in the Far East and China regions) but the market will begin to ramp up from 2010 onwards and by 2013 20%, or one in five phones shipped, will possess NFC capability.
–The top three regions (Far East and China, North America and western Europe) will represent nearly 90% of the $75 billion market (by gross transaction value) by 2013.
The report also provides six year regional forecasts of NFC mobile payments for physical goods, providing data on device shipments, transaction sizes and volumes as well as case studies from companies pioneering in this market.
Further details of the study, “Mobile Payment Markets: Contactless NFC 2008-2013” can be downloaded from www.juniperresearch.com.