Report: Consumers to Spend Nearly $200 Billion Using NFC-Enabled Mobile Devices by 2017
Oct. 22, 2012
Today, NFC-based mobile payments platform Isis begins its long-awaited pilots in Austin, Texas and Salt Lake City, and none too soon according to a report late last week from London-based global technology research firm ABI Research. While many believe that NFC will never live up to its early hype and other technologies will enable mobile payments, ABI predicts the total value of transactions completed by NFC-enabled mobile phones will jump from $4 billion this year to $191 billion in five years, according to the report. Those payments will surpass $100 billion a year sooner in 2016, the report said. ABI expects “the convergence of proximity, P2P and online payments” to drive the NFC adoption.
“Market convergence is at least two years away from reality,” said Phil Sealy, research analyst for ABI Research. “We believe transportation and ticketing will be the first market to benefit from convergence, with 26 percent of all NFC handsets forecast to house a contactless ticketing application in 2017. Transport authorities will have the ability to offer additional added value services, including route planners, delay bulletins, time tables, as well as retail and loyalty, or advertising applications offering own brand or partnering/local business a platform to offer additional solutions to generate new revenue streams.”