NFC payments to hit $75 billion in 2013, says Juniper

NFC payments to hit $75 billion in 2013, says Juniper

The gross transaction value of payments made via NFC contactless technology will exceed $75 billion in 2013 according to telecommunications analysis firm Juniper Research Ltd. 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, according to Juniper. The firm said NFC would turn the mobile phone into an electronic wallet used for relatively low value purchases such as refreshments, tickets and food.

"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," said Howard Wilcox of Juniper, in a statement. In 2009 will limited numbers of NFC devices will be shipped but the market will begin to ramp up from 2010 onwards and by 2013 about 20 percent of mobile phones will possess NFC capability, Juniper asserted.

The annual transaction value is set to grow by a factor of five between 2011 and 2013 and the top three regions — Far East & China, North America and Western Europe — will represent nearly 90 percent of the $75 billion annual market in 2013. "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, checks, credit and debit cards, and to allay understandable, even if unfounded, fears and skepticism about the security of The Mobile Wallet," Wilcox said.