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

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

The Fastest-Growing Mobile Opportunity in 2022

The number of mobile communication subscriptions worldwide is currently estimated at 8 billion, with 6 billion on smartphone connections, from a user base of 5.9 billion unique subscribers among a global population of 7.9 billion. Fifth-generation (5G) mobile service subscriptions using a compatible device significantly grew during the COVID-19 pandemic, but 4G connections remain the dominant force within the global telecom service provider sector. While the use of mobile phones is common throughout developing nations, 4G services are still an emerging technology in many parts of the world. Overall, 5G subscriptions will likely grow from 580 million at the end of 2021 to 3.5 billion by the end of 2026. 5G Mobile Market Development According to the latest worldwide market study by Juniper Research, revenue generated from 5G mobile services will reach $600 billion by 2026 -- representing 77 percent of global network operator-billed revenue. The adoption of 5G services across consumer and

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d