Skip to main content

Setbacks for Deployment of NFC Mobile Payments

Juniper Research has shared its revised forecasts for the global mobile near-field communication (NFC) market, which now has scaling back its growth estimates for the North American and Western European markets.

While their latest market study finds that by 2017 the proportion of NFC-enabled smartphones will be only marginally below previous estimates, global NFC retail transaction values are now expected to reach $110 billion in 2017 -- that's significantly below the $180 billion previously forecast.

According to Juniper's assessment, the Apple decision to omit an NFC chipset from the iPhone 5 has reduced retailer and brand confidence in the technology, leading to reduced POS (Point of Sale) rollouts and less NFC campaigns.

This in turn will lead to lower NFC visibility amongst consumers and fewer opportunities to make payments, thereby creating a cycle of indifference to NFC technologies in the short term.

"While many vendors have introduced NFC-enabled smartphones, Apple's decision is a significant blow for the technology, particularly given its previous successes in educating the wider public about new mobile services" said Windsor Holden, research director at Juniper Research.

He believes that without the support of Apple, it will be even more difficult to persuade consumers -- and retailers -- to embrace what amounts to a wholly new means of in-store payment.

Apple's decision would have the mist impact on markets in North America and Western Europe, where transaction values would exhibit a two-year lag on previous forecasts as retailers delay their POS investments.

In contrast, retail transactions in the recognized NFC market leaders -- Japan and South Korea -- are likely to experience little or no impact from the short-sighted Apple decision.

It also observed that lower than expected adoption of Google Wallet, which is linked to a delayed launch of the ISIS NFC project in the U.S. market, would also have a negative effect on that market.

Other key findings from the market study include:
  • Despite Apple’s decision, NFC trial consumer feedback -- e.g. at the London Olympic venues and in Singapore -- has been extremely positive, suggesting strong latent interest when services are more widely deployed.
  • Both MasterCard and Visa have certified several NFC service solutions and datacentres, including those of Giesecke & Devrient and Gemalto.

Popular posts from this blog

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

Contact Center as a Service Gains AI Benefits

Enterprise leaders with large customer care organizations are exploring Artificial Intelligence (AI) applications to improve their online customer experience, increase operational efficiency, and reduce costs to improve profitability. Trained AI can be used to automate tasks, such as answering routine questions, freeing up contact center agents to focus on more complex inquiries. AI can also be applied to personalize the customer experience by recommending new offerings. Additionally, AI can be deployed to analyze vast amounts of existing customer data to identify support trends and patterns, which can be used to improve the overall customer experience. Customer Care AI Market Development Worldwide Contact Center (CC) and Conversational AI, including virtual assistant end-user spending is projected to total $18.6 billion in 2023 -- that's an increase of 16.2 percent from 2022, according to the latest market study by Gartner. "Near-term investment growth rates for CC and CC Con