According to the report, in 2011 major technology infrastructure standards for NFC payments were finalised, many mobile network operators committed to the market and NFC payment pilots from both mobile operators and financial institutions transitioned to commercial service. Above all, NFC-enabled smartphone models were announced by almost all handset manufacturers and Google ignited the market by launching its wallet in the US.
However, the report warned that the market acceleration of 2011 revealed some parts of the ecosystem unprepared for the future. In particular, retailers are less convinced of the benefits of NFC payments over existing card technologies and are unwilling to invest in contactless infrastructure so soon after the transition to Chip and PIN. Education and win-win propositions from other ecosystem players are necessary to make retailers committed to this opportunity.
Finally, the report has revealed that more than 1 in 4 mobile users in the US and Western Europe will pay in-store using NFC by 2017 and Mobile Network Operators can offset declining ARPU as they commit to NFC-based payment projects.
The report titled “NFC Mobile Payments & Retail Marketing: Business Models & Forecasts 2012-2017” was issued by UK research firm Juniper Research.
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