The market for NFC-ready POS terminals continued to show momentum in 2016 with annual shipments anticipated to reach an estimated 16.1 million units, according to the latest worldwide market study by Berg Insight.
Source: Digital Lifescapes
The increasing usage and penetration of mobile devices — such as smartphones and tablets — facilitate growth of mCommerce within the U.S. market. The American mCommerce market is expected to grow at a CAGR of 25.72% from 2014 to 2019.
Banks that have so far been reluctant to foray into the digital payments sector are set to finally make their moves into the digital wallet space, with 23% of respondents placing the technology as their top investment priority. Mobile proximity payments, incorporating NFC and QR codes held the second highest priority level at 17.6%.
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eCommerce is a 1,145 billion EUR market generating 34.8 billion transactions in 2014 and mCommerce has generated 115 billion EUR in revenues, through 29 billion transactions — including about 13% of alternative payment systems other than payment cards.
IDATE estimates that 278 million NFC-enabled mobile phones will be used in 2014.
Since 2011, expectations have been high that mobile contactless payments — enabled via Near Field Communications (NFC) — would rapidly gain traction around the world. This has not come to pass.
The number of consumers making contactless payments via their mobile handsets will reach 300 million globally by 2017 — that’s up from just over 110 million last year.
Alipay from China had more than 300 million mobile payment registered users in 2013 and conducted 2.78 billion unique transactions for the year. They are currently processing close to 18 million transactions per day.
There are many alternative mobile payment methods using operating operator billing, NFC, embedded payments, credit cards and proximity payments.
Mobile device technology is evolving rapidly. Enhancements such as accelerometers, gyroscopes, near field communication NFC, and gesture recognition are predicted to be the big winners.
These mobile technologies are projected to make the greatest penetration gains over the coming years, according to ABI Research.
eMarketer estimates there will be nearly 30 million smartphone users in Brazil by the end of this year — that’s 20.8% of the country’s mobile phone users.
Near field communication (NFC) transactions in Brazil are expected to soar over the next four years, from a small base of only 1.3 million in 2013 to 483.9 million in 2017.
Strategy Analytics lowered its outlook for NFC-based mobile payments to reflect the slow pace of service offerings and the continued low adoption of contactless payments by retailers. Meanwhile, alternative methods of making in-store mobile payments have gained pockets of traction, and are fragmenting the mobile payment sector.
115 million NFC handset owners will spend just over $48 Billion using their NFC phones by 2017 — that’s down from 158 million and $53 Billion in their previous forecast.
via Strategy Analytics