Nfc payments 5 facts about the bright future


Published on

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Nfc payments 5 facts about the bright future

  1. 1. ©2012 by EliNext GroupNFC Payments: 5 Facts about theBright FutureNFC (Near Field Communication) technologyenables a secure wireless exchange ofinformation between two devices over a veryshort distance (within a few inches). It is idealfor transmitting small amounts of data with
  2. 2. ©2012 by EliNext Groupminimal set-up time and power consumption.NFC has a great potential for a wide array ofuses, especially for mobile payments.At the moment, Near Field Communication isbeing increasingly used for the payment of goodsin-store and as transport tickets. Over time NFCcan phase out signature- and PIN-based cards.Here are 5 supporting facts about the brightfuture of NFC as a technology for digital moneytransfers:1. Consumer appeal. The allure of NFCtechnology is its simplicity. To complete atransaction in the NFC-based mobile paymentsystem the user has to wave a smartphone overa POS terminal with NFC reader, or tap thephone against it. (The system would work onlywith mobile devices that have special NFC chips.)NFC gives consumers the option of using mobile
  3. 3. ©2012 by EliNext Groupdevices to make easy, convenient and secureeveryday payments.2. Going mass-market. Mobile devices arecarried more rigorously than wallets and purses.Therefore, it makes sense to use connectedmobile devices for making “tap and go” paymenttransactions. According a recent report byGartner, the number of people using mobilepayment services is supposed to reach 212.2million in 2012 (up from 160.5 million in 2011)and 448 million users by 2016.3. Up to 700 million NFC handheld devicesin 2016. NFC is already widespread in Japan,South Korea and some African countries. If totake the US, analysts suggest that it will take 3to 5 years for the technology to becomemainstream in this country. According to aresearch report by Berg Insight, a Swedish
  4. 4. ©2012 by EliNext Groupanalyst firm, global sales of handsets featuringNear Field Communication reached 30 millionunits in 2011. In 2016 shipments are forecast tocome up to 700 million units.4. Accelerating rollout of NFC-readypayment infrastructure. Berg Insight indicatesthat the market for NFC-ready POS terminalsgrew fiercely in 2011. The Swedish research firmalso suggests that the global installed base ofNFC-ready POS terminals will increase at acompound annual growth rate (CAGR) of 49.4percent from 3.9 million units in 2011 to 43.4million units in 2017.5. NFC contactless payments may hitUS$180 bn in 2017. Contactless payments arestill at an early stage, but hold great promise.Wider adoption of NFC-enabled smartphones andterminals will boost the volume of contactless
  5. 5. ©2012 by EliNext Grouppayments. According to a new forecast fromJuniper Research, NFC mobile payments willexceed US$180 billion worldwide in 2017.Near Field Communication is transforming mobilephones into payment devices. This can greatlyimprove the way we live and work.
  6. 6. ©2012 by EliNext GroupELINEXT GROUPWebsite: http://www.elinext.comEmail: info@elinext.comCorporate Blog: http://software-topics.comFacebook: officeMarina House, Adelphi QuayWaterford, Republic of Ireland +353 (51) 347 477Belarus Development Center155b Bogdanovich St.220040 Minsk, Belarus +375 (17) 237 53 65Vietnam Development Center37A Phan Xich Long St.Ward 3, Phu Nhuan DistrictHo Chi Minh City, Vietnam +84 (8) 3995 6849Suggested citation: EliNext Group.2012.“NFC Payments: 5 Facts about the Bright Future”<>