AS MARKET BARRIERS begin to fade and necessary market elements begin to solidify, mobile payments are expected to gain momentum. While infrastructure on both on the retailer side and on the consumer device side remains weak, new research from NPD In-Stat forecasts that proximity mobile payment transactions will approach 9.9 billion in 2016, up from 1.1 billion in 2012.
In the proximity payment space – those payments made at a retailer via near field communication (NFC) technology or barcode scanning – trials are transitioning to commercial launches, and support for these solutions continues to build. But according to the report Worldwide Mobile Payment Market Marches Ahead, the market is still in its infancy meaning a variety of technologies are being explored and promoted.
“2011, however, was a significant year in clarifying the future direction of market development”, said senior analyst Amy Cravens, in the report’s release. “Based on the vast support for NFC and the endorsements made by significant players in 2011, it is apparent that this will be the dominant contactless payment solution going forward. However, there continues to be a great deal of support behind barcode-based payments as well (mFoundry and Starbucks, PayPal, and Home Depot), indicating that these types of solutions will continue to be supported in the coming years.”
Other research findings include:
– Over half of survey respondents are familiar with mobile payments, up from just one-third in 2011;
– Remote mobile payments will account for nearly $226 billion in mobile payments in 2012; and
– Asia Pacific will dominate proximity mobile payments throughout the forecast period, representing 41% of the transactions in 2016.
