Around 52 million consumers will adopt new mobile technologies such as near field communication (NFC) and other physical mobile payment methods to pay for everyday goods and services by 2011, according to British industry research company Juniper Research. This will help drive the value of the physical mobile payments market to $US11.5 billion by the same year.
NFC and other physical mobile payments methods will begin to offer consumers a viable alternative to cash, credit cards, and debit cards, supporting increasingly mobile lifestyles.
Juniper forecasts that by 2011, around 12 per cent of the total mobile phones in circulation will offer support for contactless payment, specifically NFC, equating to nearly 470 million NFC-enabled handsets worldwide and providing a significant marketplace for retailers to offer goods via m-payment applications. Other findings from the report include:
- Mobile payment applications and services are already available in most regions in a variety of formats where they are being adopted in either a trial or commercial mode with favourable user feedback.
- Industry players (including retailers, handset vendors, and the financial community) in the Far East and the US are seen as particularly receptive to the idea of using RFID or NFC to facilitate mobile payments for physical goods and services.
- Members of the mobile payments value chain must develop a mutually satisfactory, robust business model, guaranteeing revenue to all parties
Len Rust is publisher of The Rust Report.