Within five years, NFC will be the new standard in mobile payments. And if the latest projections from Juniper are correct, that eventual reality will see record mobile payment transactions by 2017.
Juniper Research believes that the NFC retail payments market will blow past $180 billion globally in five years, more than a seven-fold increase over 2012.
North America, Western Europe and Far East & China will contribute 90% of this market value as smartphones with NFC payment technology become the new standard.
The report found that 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 US.
“This is a critical time for the NFC retail payments market,” writes report co-author Dr. Windsor Holden. “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.”