17 July 2008

NFC Mobiles To Generate Share Of Payment Transactions

Mobile phones complete with Near Field Communications (NFC) will generate $75 billion worth of payment transactions within the next five years, according to a study.

"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,” explained Howard Wilcox, report author for Juniper Research.

During 2009, Juniper Research expects to see a limited numbers of NFC devices shipped - except in the Far East & China region. It believes, however, that the  market will begin to ramp up from 2010 onwards and by 2013 20%, or 1 in 5 phones shipped, will possess NFC capability.

But, Juniper Research does believe that manufacturers will need to convince its market of the technology and its merits. “Whilst 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 scepticism about the security of The mobile Wallet,” added Wilcox.