NFC mobile payments to increase to $191 billion in 2017 from $4 billion in 2012

Telecom Lead America: Total value of NFC mobile payments will increase from $4 billion in 2012 to $191 billion in 2017.

In 2016, NFC mobile payments will reach the $100 billion mark.

Mobile payments and the convergence between payment types – proximity, P2P and online – stored on a single NFC handset will be the initial trigger.

Smart card and IC vendors, device OEMs, MNOs, partnering service providers, and payments networks are set to benefit from the successful convergence.

Transportation and ticketing will be the first market to benefit from convergence, with 26 percent of all NFC handsets forecast to house a contactless ticketing application in 2017.

“Transport authorities will have the ability to offer additional added value services, including route planners, delay bulletins, time tables, as well as retail and loyalty, or advertising applications offering own brand or partnering/local business a platform to offer additional solutions to generate new revenue streams,” said ABI Research analyst Phil Sealy.

Current MNO pricing strategies makes market entrance and investment difficult for potential partners. This is demonstrated by MNOs holding back from large-scale investment in NFC smartphones. Telefonica O2’s mobile wallet and Barclays PingIt have not included NFC functionality at launch.

Recently, reported that NFC Mobile Payments set to cross $180 billion worldwide in 2017 as NFC becomes standard, according to Juniper Research. For mobile wallet providers and partners, NFC payments provide personalized retail marketing and sales opportunities above and beyond the capabilities of debit or credit cards.

[email protected]