Mobile payments in 2017 will be worth $1.3 trillion

mobile payments trends

Mobile Payment Industry

Prediction made based on the acceleration of NFC and the sale of physical goods over smartphones.

According to the latest Juniper Research report, between now and 2017, the size of the mobile payments marketplace will expand almost four times over, to the point that it will reach over $1.3 trillion.

The report is entitled “Mobile Payments Strategies: NFC, Remote Purchases & Money Transfer 2012-2017”.

The data included in the report suggested that the growth in the mobile payments industry would be driven primarily from the sale of physical products purchased both online and in brick and mortar shops through the use of NFC enabled devices.

In 2017, said the report, these two types of transactions will make up 54 percent of the value of mobile payments. It also said that in that year, those transactions will have been given a significant push from factors such as a much more widespread availability of NFC technology and support infrastructure, as well as a larger amount of operator engagement in mobile commerce channels.

At the same time, these transactions will still make up only 4 percent of the retail total worldwide.

The report showed that the recent wave of activity in NFC has brought this type of transaction to the cusp of a significant explosion. It pointed out that Google Wallet, ISIS, the POS terminals from VeriFone, and Project Oscar are all vital developments that will help to spur this along. However, the report also warned that in order for NFC to truly reach its full potential, there will need to be a significantly larger scale marketing effort.

The author of the report, Dr. Windsor Holden, stated that “While we are now seeing significant deployments 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 profile as a simple, intuitive payment mechanism.”

The mobile payments report also made certain to note that smartphones and tablets are becoming much more important on both a domestic and international level in terms of giving businesses and consumers the ability to transfer money. However, it did also highlight that some of these services are currently being held back by a lack of compatibility between services as well as regulatory requirements.

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