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US: NFC retail payments will exceed $180 billion by 2017

US: NFC retail payments will exceed $180 billion by 2017
Friday March 8 2013

Research from Juniper Research reveals that the global NFC retail payments market will exceed $180 billion by 2017, more than a seven-fold increase over this year.

The leading regions of North America, Western Europe and Far East & China will contribute about 90.2 percent of this market value, as smartphones with NFC payment technology become standard throughout the wireless industry.

Juniper also found that last year was a record year for NFC payments. Major technology infrastructure standards were finalized, many mobile network operators committed to the market and NFC payment pilots from both mobile operators and financial institutions transitioned to commercial service.

NFC-enabled smartphone models were announced by almost all mobile handset makers and Google ignited the market by launching its Google Wallet in the United States.

But the report cautions market observers that the market acceleration of 2011 revealed some parts of the ecosystem unprepared for the future. In particular, retailers are less convinced of the benefits of NFC payments over existing card technologies and are unwilling to invest in contactless infrastructure so soon after the transition to Chip & Pin.

Report co-author Dr Windsor Holden "This is a critical time for the NFC retail payments market. Despite the significant progress being made today, the full potential of the market can only be fulfilled if all ecosystem players are equally committed and mobile wallet technology remains in place."