nfc payments 5 facts about the bright future
TRANSCRIPT
©2012 by EliNext Group
NFC Payments: 5 Facts about the Bright Future
NFC (Near Field Communication) technology
enables a secure wireless exchange of
information between two devices over a very
short distance (within a few inches). It is ideal
for transmitting small amounts of data with
©2012 by EliNext Group
minimal set-up time and power consumption.
NFC has a great potential for a wide array of
uses, especially for mobile payments.
At the moment, Near Field Communication is
being increasingly used for the payment of goods
in-store and as transport tickets. Over time NFC
can phase out signature- and PIN-based cards.
Here are 5 supporting facts about the bright
future of NFC as a technology for digital money
transfers:
1. Consumer appeal. The allure of NFC
technology is its simplicity. To complete a
transaction in the NFC-based mobile payment
system the user has to wave a smartphone over
a POS terminal with NFC reader, or tap the
phone against it. (The system would work only
with mobile devices that have special NFC chips.)
NFC gives consumers the option of using mobile
©2012 by EliNext Group
devices to make easy, convenient and secure
everyday payments.
2. Going mass-market. Mobile devices are
carried more rigorously than wallets and purses.
Therefore, it makes sense to use connected
mobile devices for making “tap and go” payment
transactions. According a recent report by
Gartner, the number of people using mobile
payment services is supposed to reach 212.2
million in 2012 (up from 160.5 million in 2011)
and 448 million users by 2016.
3. Up to 700 million NFC handheld devices
in 2016. NFC is already widespread in Japan,
South Korea and some African countries. If to
take the US, analysts suggest that it will take 3
to 5 years for the technology to become
mainstream in this country. According to a
research report by Berg Insight, a Swedish
©2012 by EliNext Group
analyst firm, global sales of handsets featuring
Near Field Communication reached 30 million
units in 2011. In 2016 shipments are forecast to
come up to 700 million units.
4. Accelerating rollout of NFC-ready
payment infrastructure. Berg Insight indicates
that the market for NFC-ready POS terminals
grew fiercely in 2011. The Swedish research firm
also suggests that the global installed base of
NFC-ready POS terminals will increase at a
compound annual growth rate (CAGR) of 49.4
percent from 3.9 million units in 2011 to 43.4
million units in 2017.
5. NFC contactless payments may hit
US$180 bn in 2017. Contactless payments are
still at an early stage, but hold great promise.
Wider adoption of NFC-enabled smartphones and
terminals will boost the volume of contactless
©2012 by EliNext Group
payments. According to a new forecast from
Juniper Research, NFC mobile payments will
exceed US$180 billion worldwide in 2017.
Near Field Communication is transforming mobile
phones into payment devices. This can greatly
improve the way we live and work.
©2012 by EliNext Group
ELINEXT GROUP
Website: http://www.elinext.com
Email: [email protected]
Corporate Blog: http://software-topics.com
Facebook: http://www.facebook.com/elinext
Twitter: https://twitter.com/elinext
Delicious: http://delicious.com/elinextgroup
Ireland office
Marina House, Adelphi Quay
Waterford, Republic of Ireland
+353 (51) 347 477
Belarus Development Center
155b Bogdanovich St.
220040 Minsk, Belarus
+375 (17) 237 53 65
Vietnam Development Center
37A Phan Xich Long St.
Ward 3, Phu Nhuan District
Ho Chi Minh City, Vietnam
+84 (8) 3995 6849
Suggested citation: EliNext Group.2012.
“NFC Payments: 5 Facts about the Bright Future”
<http://www.elinext.com/nfc-payments-5-facts-about-the-bright-
future>