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BizReport : Ecommerce archives : June 06, 2013

NFC infrastructure emerges as Gartner lowers transaction values

A new report from Gartner reduces forecasted near-field communication transaction values due to low adoption of the technology across all markets in 2012 coupled with the struggle for commercially live services to gain traction. Meanwhile, Berg Insight's latest figures show emerging NFC infrastructure.

by Helen Leggatt

Gartner now forecasts near-field communication to account for just 2% of total transaction value this year, and 5% by 2017. Those figures translate to around $4.7 billion for NFC-related payments globally in 2013, increasing to $36 billion in 2017. The previous Gartner forecast put the 2017 value of NFC payments at an estimated $60 billion.

Worldwide mobile payment transactions will, however, soar. Gartner predicts mobile payment transaction values will reach $235.4 billion in 2013, a 44% increase on 2012's $163.1 billion. The number of mobile payment users worldwide will reach 245.2 million in 2013, up from 200.8 million in 2012.

In terms of NFC infrastructure, new research from Berg Insight shows that what's required for NFC mobile wallet services is finally emerging. At the end of 2011 just 6 countries had NFC mobile wallet services commercially live. By the end of Q1 2013 that figure had risen to 13.

But, says Berg Insight in its Mobile Wallet Services report, these services remain available only to a few consumers.

"With the exception of a few projects in Asia-Pacific, there are only three NFC mobile wallet services in the world that have an effective addressable market of more than 100,000 people," says Lars Kurkinen, telecom analyst at Berg Insight. "These three services are Google Wallet and Isis in the US and Turkcell Wallet in Turkey."

Image via Shutterstock

Tags: mobile payments, mobile wallet, near field communications

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