ABI Research has published a new report predicting that NFC payments will reach mass market adoption in the United States and Western Europe in 2016, with annual NFC transactions reaching $100 billion.
“Despite the lack of definitive announcements to date, MNOs and OEMs will flood some markets with NFC payment-ready smart phones in 2012 and 2013,” explains senior analyst Mark Beccue. “That, along with momentum from Google Wallet and several other MNO-led initiatives, like Cityzi in France, ISIS in the US, and the yet unnamed MNO JV in the UK, builds the installed base of NFC mobile payment users to more than 16% of mobile subscribers in the U.S. and Western Europe by late 2014.”
The report cites faulty business models, not technology, as the major impediment to near-term progress of NFC mobile payments, but anticipates this changing shortly.
“With these new business models, the opportunities are too good to pass up. MNOs, OEMs, and Google are tinkering with multiple business and partnership models and will most likely use a combination of one or more. This approach will help move the business forward,” says Beccue.
The report, ‘NFC Mobile Payments’, covers the installed base of NFC handsets, active NFC mobile payment users, and NFC mobile payments by region and selected countries, as well as examines evolving consumer behavior and use cases for NFC mobile payments.