NFC and Contactless Payments get Momentum across Europe
When it comes to NFC payments, the business case is becoming more clear: according to Juniper Research, NFC will reach $74 billion in transactions by 2015. The so important NFC POS deployment looks optimistic, too: Berg Insights have currently released their study which claims that half of world‘s POS terminals will be NFC-ready by 2017, rising from 3.9 million in 2011 to 43.4 million in 2017. Another good news is that POS terminal giant VeriFone announced already in 2011 that all their new POS terminals will be NFC-enabled.
On the consumer side, marker research firm IHS iSuppli claims that NFC phones shipments will rise to 544.7 million in 2015. This means that 30.5 percent of all cell phones shipped in 2015 will have the capability to conduct mobile commerce using NFC technology.
On the other side, the Mastercard Mobile Payments Readiness Index reached a score of 33.2, while the stage at which mobile devices account for an appreciable share of the payments mix is 60. This means, there is still lot of work to be done while mobile payments become a mainstream.
According to a recent study by Juniper Research, mobile payments will reach $1.3tn annually by 2017, as NFC and physical goods sales accelerate. While in 2011, only 1.8 billion global mobile phone users paid for digital goods, this number is expected to rise to 2.5 billion in 2015. Both merchants ( mainly those bricks-and-mortars only ) and payment services providers will need to reflect to the rising consumer usage of mobile phones as payment device.
Except NFC, another new trend in mobile payments is the direct carrier billing. With this solution, merchants can enable their customers to make a purchase and pay directly via their mobile operator bill. We have seen lot of changes in this space, probably the most significant one being the WorldPay announcement to partner with Boku to provide direct carrier billing to merchants Another direct carrier billing provider, BillToMobile, boasts to reach more than 240 million customers in the US.
Wallet Wars in 2013
If NFC and direct billing haven’t caused enough confusion yet, let’s add one more type of payment: the digital wallet. Google Wallet, Isis, Paydiant- just to name a few-are all keen on to capture the attention of both merchant and consumer offering a complete range of payment services. 2013 will definitely be a year of launches, wheter be driven by banks, telcos or other players. At the end, it will again be the consumer who decides who the winner(s) will be.