Mobile Phones Equipped With Near Field Communications (NFC) to Generate $75bn Worth of Payment Transactions Within 5 Years

HAMPSHIRE, UK–(EMWNews – July 15, 2008) – A new analysis of the NFC mobile payments

opportunity forecasts that the gross transaction value of payments made via

NFC contactless technology, for relatively low value purchases (such as

refreshments, tickets and food), will exceed $75bn globally by 2013.

In the second report in its Mobile Payment Markets series, Juniper Research

found that there is a significant opportunity for NFC mobile payment

services, chips, phones and supporting services as the market reaches its

tipping point over the 2011 to 2013 period. The study explores how NFC

will transform the mobile phone into a mobile wallet payment tool that will

be used by more and more people, more and more often in future.

Report author Howard Wilcox said: “NFC will achieve traction initially in

developed countries and regions, with Japan already leading the way with

FeliCa-enabled phones. North America, Western Europe and countries such as

Korea, Singapore and Australia are likely to see service take-up.”

Highlights from the report include:

--  Global annual gross transaction value will grow over 5 times between

    2011 and 2013.

--  2009 will see limited numbers of NFC devices shipped (except in the Far

    East & China region) but the market will begin to ramp up from 2010 onwards

    and by 2013 20%, or 1 in 5 phones shipped, will possess NFC capability.

--  The top 3 regions (Far East & China, North America and W. Europe) will

    represent nearly 90% of the $75bn p.a. market (by gross transaction value)

    by 2013.

    

However, Howard Wilcox cautioned: “Whilst trial results so far have been

encouraging, the industry as a whole will need to convince both consumers

and merchants of the merits of yet another payment mechanism on top of

cash, cheques, credit and debit cards, and to allay understandable (even if

unfounded) fears and scepticism about the security of The Mobile Wallet.”

The report provides six-year regional forecasts of NFC mobile payments for

physical goods, providing data on device shipments, subscriber take-up,

transaction sizes and volumes as well as detailed case studies from

companies pioneering in this market.

Whitepapers and further details of the study, “Mobile Payment Markets:

Contactless NFC 2008-2013,” can be freely downloaded from

www.juniperresearch.com. Alternatively please contact John Levett at

[email protected], telephone +44(0)1256 830002.

Juniper Research provides research and analytical services to the global

hi-tech communications sector, providing consultancy, analyst reports and

industry commentary.