Skip to main content

Rising Contactless Payment Infrastructure Deployment

Contactless payment technology is applied when the user fulfills a transaction by tapping a card or mobile phone handset against a Chip & PIN machine, rather than swiping a debit or credit card through the Point of Sale (POS) terminal.

According to the latest market study by Juniper Research, the number of contactless transactions via mobile handsets will exceed 9.9 billion globally by 2018 -- that's up from just over 3 billion this year.

Their study findings found that two key disruptive factors -- HCE (Host Card Emulation) and the anticipated launch of Apple’s iWallet -- were likely to spur additional contactless transaction growth in the medium term.

HCE transforms a smartphone app into a virtual smartcard, so that for NFC (Near Field Communication) transactions, the SE (secure element) no longer has to be physically present in the handset.

How Standards Enable Market Development

According to Juniper's assessment, utilizing a remote HCE-based SE can reduce time-to-market and means that banks can retain control of their customers without needing to partner with mobile network operators.

They also observed that the recent decision of Visa and MasterCard to endorse HCE standard should reassure banks who may have been concerned about the relative security of transactions.


Meanwhile, Juniper noted that it's increasingly likely that Apple will introduce an iWallet in Q4 2014 -- which enables secure contactless payment via BLE (Bluetooth Low Energy) and a second air interface.

Juniper believes that Apple’s entry into proximity payments could drive growth in the wider contactless space by increasing consumer awareness of the process, which may indirectly benefit the adoption of NFC.

Mobile Network Operator Opportunity

However, to put the upside opportunity into perspective, Juniper warned that while the industry as a whole would receive a boost from these factors, mobile network operators would likely lose out.

"With the emergence of HCE, the operator role at the heart of the NFC value chain is no longer sacrosanct. Banks can now go it alone and as a result the scale of the operator opportunity is significantly diminished," said Dr Windsor Holden, research director at Juniper Research.

Once again, mobile network service providers must attempt to add-value to the mobile app ecosystem -- beyond their prior attempts to become the go-between gatekeeper. In developed markets, they need to find creative ways to ensure that they aren't merely the transport for contactless payment transactions.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

How GenAI is Transforming the Role of CIO

The introduction of Artificial intelligence (AI), and the emergence of Generative AI  (GenAI), are now resulting in two key focus areas for Chief Information Officers (CIOs) and their IT leadership team. "GenAI is not just a technology or just a business trend. It is a profound shift in how humans and machines interact," said Mary Mesaglio, VP Analyst at Gartner . "We are moving from what machines can do for us to what machines can be for us." AI platforms are evolving rapidly from being our tools to becoming our teammates. Gartner predicts that by 2025, GenAI will be a workforce partner for 90 percent of companies worldwide. CIO Leadership Market Development CIOs have a major role in how they shape AI and how AI shapes us. According to recent Gartner surveys of CEOs, enterprise CIOs are their number one choice to unlock the value of GenAI tools. In fact, CIOs and IT executives will prioritize two areas to unleash the possibility of AI over the next 12-24 months – t