NFC-Enabled Mobile Payments on the Rise

New study predicts $130 billion in payments by 2020.

December 23, 2014

BOSTON – Payments made via near field communications (NFC)-enabled mobile handsets will account for $130 billion in worldwide consumer retail spend by 2020, according to a new study by Strategy Analytics. This equates to 254 million mobile users making five payments per month at an average of just below $9 per transaction.

The report, "Global Mobile NFC Payments to Exceed $130 Billion by 2020," quantifies the scale of the NFC-based mobile payment opportunity and identifies three key catalysts for growth: the launch of Apple Pay initiatives by payment networks, driving contactless payment acceptance among retailers, and consumer demand for mobile payments.

While retailers have been slow to support NFC payments in stores, Strategy Analytics believes the launch of Apple Pay in October 2014 combined with a push by payment networks will stimulate the adoption of NFC-enabled point-of-sale (POS) terminals by retailers. (For more on the pros and cons of Apple Pay, read the upcoming cover feature in the January issue of NACS Magazine.)

Despite Strategy Analytics' positive outlook for NFC-based mobile payments, it will account for a single digit share of the multi-trillion dollar retail market globally by 2020, as traditional forms of payment (e.g. cash and cards) remain dominant.

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