NFC-enabled Mobile Phones to Generate $75B worth of Payment Transactions by 2013

(Top News, 19 Aug 2008)

Gross transaction value of payments made via NFC contactless technology, for relatively low value purchases such as refreshments, tickets and food, will exceed $75 billion globally by 2013, according to a latest study by Juniper Research.

In the second report in its Mobile Payment Markets series, Juniper Research 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.

The study explores how NFC will transform the mobile phone into a mobile wallet payment tool that will be used by more and more people, more and more often in future.

"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," says report author Howard Wilcox.

Other key findings from the report include:
- Global annual gross transaction value will grow over five times between 2011 and 2013
- 2009 will see limited numbers of NFC devices shipped (except in the Far East and China region) but the market will begin to ramp up from 2010 onwards; and by 2013, about 20 percent, or one in five phones shipped will possess NFC capability.
- The top three regions (Far East and China, North America and W. Europe) will represent nearly 90 percent of the $75 billion p.a. market (by gross transaction value) by 2013.

However, Howard Wilcox cautions, while trial results so far have been encouraging, the industry as a whole will need to convince both consumers and merchants of the merits of yet another payment mechanism on top of cash, cheques, credit and debit cards, and to allay understandable (even if unfounded) fears and skepticism about the security of The Mobile Wallet.

Click here for more information on Juniper Research