Report: NFC Growth Rates Declining

July 15, 2013

While a new report pegs the value of NFC mobile payments in the U.S. this year at more than $1 billion, digital media and commerce advisory firm eMarketer slashed growth estimates on the payment method. Previously, the firm had predicted U.S. consumers would spend $20 billion using their phones at the POS by 2015, but now it says the value of mobile payments won’t reach that milestone until the following year. By 2017, even though growth rates will have declined substantially, eMarketer expects the mobile payments market to reach $58.42 billion.

One of the factors weighing on eMarketer’s predictions is the uneven performance by high-profile mobile wallet ventures.

“NFC adoption remains a wild card,” the report said. “On the one hand, NFC-enabled hardware continues to proliferate. On the other hand, US mobile payment platforms reliant on NFC have, so far, failed to gain traction among consumers and merchants even as other methods and technologies have picked up steam. The failure of large-scale mobile payment schemes to take root in 2012 put many merchants and consumers in a ‘wait-and-see’ mode, resulting in lowered estimates.”