Consumer Demand Proves Driving Force Behind NFC Mobile Payment Solutions

Is it the mobile industry driving the growth of NFC or are consumers the primary impetus for NFC gaining ground in every direction?

According to “Mobile Payment: Technologies and Business Models,” a new report from Parks Associates, NFC (Near Field Communication) will become a standard feature on smartphones over the next few years as consumers respond to the convenience of the “mobile wallet” for making payments.

In a press release issued Wednesday, the international research firm reports its latest findings, which reveal that almost 50% of U.S. smartphone owners find an NFC-enabled mobile wallet application appealing.

“The convenience of e-Wallet solutions, specifically for eliminating the need to carry multiple or any credit cards, is driving the majority of consumer interest,” says Harry Wang, director, mobile research, Parks Associates.

Already 16% of smartphone owners use PayPal or other types of e-Wallet solutions as their preferred method for mobile payments, and one in four Millennials regularly use their mobile phones to research products or services prior to a purchase.

These factors will create a commerce opportunity on smartphones of more than $800 billion U.S. in 2015 and boost business for merchants, retailers, financial institutions, and mobile carriers. Industry heavyweights and eBay reported robust mobile eCommerce growth in 2011.

“We are witnessing a groundswell of activities in the mobile payment industry,” Wang concluded. “Visa is engaged with payment solution providers, and Google recently launched its Wallet app, which integrates with its Offers service. Isis, a joint venture between AT&T, T-Mobile, and Verizon, expanded its business model to include more payment partners. Each deal signals serious interest from all parties to build scale and technology advantage over competing solutions.”