Report by Juniper Research says growth will be driven by both NFC payments and remote purchases, accounting for 54 per cent of the total value of mobile payments
The rise in mobile payments is expected to quadruple to $1.3tn (829bn) by 2017, according to a new report from Juniper Research.
The report, ‘Mobile Payment Strategies: NFC, Remote Purchases & Money Transfer 2012-2017’, found that this growth would primarily be driven by sales of physical goods by both NFC transactions and remote purchases.
It said that these transactions, which will account for 54 per cent of the total value of mobile payments in the next five years, have already been bolstered by elements such as the widespread rollout of NFC support infrastructure and the increased engagement of operators within the m-commerce space.
However, it added that despite this growth, physical goods sales conducted via a mobile phone will still only account for around four per cent of global retail transactions by 2017.
According to the report, the increase in activity across the NFC value chain has marked a tipping point, and cited Google Wallet (pictured) amongst others as key developments in this regard. Despite this, it said that marketing behind NFC would need to be scaled up significantly for it to fulfil its full potential.
Report author Dr. Windsor Holden said: “While we are now seeing significant deployment 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 profil;e as a simple, intuitive mechanism.”