Communications and Technology Industry Research

Over the next four years, according to market analyst firm Juniper Research, one in every six mobile subscribers in the world will be using NFC devices and NFC-enabled monetary transactions will exceed $110 billion.

 

“Payments and retail transactions, such as coupons, would combine to transform the phone into not only a payment tool but also a retail tool in addition to its many current functions,” said the research firm in its latest report on nearfield communication devices.

 

The research firm said NFC adoption will be driven initially by transport ticketing services, followed by retail payment services.

 

According to Juniper Research (News - Alert), NFC adoption is centered on the Far East at the moment.

 

Juniper Research also notes that business model and technology hurdles will not disappear so early, and they will remain for years to come.

 

"Our research found that both the business model and the rollout of POS (Point of Sale) NFC readers at merchant locations are issues that need solving – depending on the country. As these are overcome NFC is poised to enter an operational build up phase culminating in mass service rollouts across many countries, typically in metro areas driven by transport ticketing,” said Howard Wilcox of the research firm.

 

Japan is already leading the way for developed countries with its FeliCa-based mobile wallet phone; by 2014 Juniper expects similar services to have gained traction in Western Europe and North America.

 

 By 2014, the analyst says, NFC global gross transaction may exceed USD 110 billion, while retailing ARPU from NFC coupons and smart posters will exceed ARPU from NFC payment transactions.

 

The researcher said the service will be based initially around mobile coupons, smart posters, gift vouchers and loyalty programs.