By Scott Thompson
Global mobile payment transactions will rise nearly fourfold over the next five years to more than $1.3 trillion, according to a new report from Juniper Research. But the company warns that consumer awareness is still extremely low and that all parts of the mobile ecosystem should pull together to tackle this.
The report finds that growth will primarily be driven by sales of physical goods by both remote purchases and NFC transactions. These transactions – which will account for 54 per cent of the total value of mobile payments by 2017 – have already been bolstered by stimuli such as the widespread roll-out of NFC support infrastructure and the increased engagement of operators with the m-commerce space. Nevertheless, it observed that despite this growth, those physical goods sales conducted via the mobile phone would still only account for around four per cent of global retail transactions by 2017.
According to the report, entitled Mobile Payments Strategies: NFC, Remote Purchases & Money Transfer 2012-2017, the recent spate of activity across the NFC value chain has marked a tipping point; it cites Google Wallet, VeriFone’s PoS terminals and the operator-led ISIS and Project Oscar consortia as key developments in this regard. However, it cautioned that for NFC to fulfil its potential, marketing behind the mechanism would need to be scaled up dramatically.
Report author Dr Windsor Holden comments: “While we are now seeing significant deployments of contactless infrastructure, consumer awareness is extremely low. Thus, it is imperative for all members of the NFC value chain to engage with the public to heighten its profile as a simple, intuitive payment mechanism.”