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Asia-Pacific to Dominate Proximity Mobile Payments

The mobile payments market is apparently very diverse -- highly fragmented is perhaps the best description that comes to mind.

There is no single model that's been adopted by the entire market, but rather a variety that depends upon the type of mobile payment and the ecosystem player involved.

In the proximity-oriented mobile payment space -- those payments made at a retailer via NFC or barcode scanning -- prior trials are now transitioning to commercial launches, and support for these solutions continues to build in the eCommerce related industries.

While infrastructure is weak, both on the retailer side and on the consumer device side, NPD In-Stat now forecasts that proximity mobile payment transactions will approach 9.9 billion in 2016 -- that's up from 1.1 billion in 2012, nearly a ten-fold increase.

"The contactless or proximity mobile payments market is in its infancy and thus a variety of technologies are being explored and promoted," says Amy Cravens, Senior Analyst at NPD In-Stat.

2011, however, was a significant year in clarifying the future direction of market development. Based on the vast support for NFC and the endorsements made by significant players, it is apparent that this will be the dominant contact-less payment solution going forward.

However, there continues to be a great deal of support behind barcode-based payments as well, indicating that these types of solutions will likely continue to be supported in the coming years.

Findings from the recent market study include:
  • Asia Pacific will dominate proximity mobile payments throughout the forecast period representing 41 percent of the transactions in 2016.
  • Over half of survey respondents are familiar with mobile payments, up from just one-third in 2011.
  • Remote mobile payments will account for nearly $226 billion in mobile payments in 2012.

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