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One in six mobile users to have NFC handset by 2014

New report forecasts worldwide gross NFC transaction value to top $110 billion in five years; NFC 'stickers' could boost market.

One in six mobile users is expected to own a near field communications (NFC)-capable device by 2014, predicted Juniper Research on Monday.

The research firm said in a new report that NFC adoption will be driven initially by transport ticketing services, followed by retail payment services.

"As these transport schemes are rolled out, so this means that the supporting NFC infrastructure is in position and available for use by enhanced and exciting new service offerings for consumers," said a statement from Juniper Research.

The firm said other services will be based initially around mobile coupons, smart posters, gift vouchers and loyalty programmes.

With that in mind, Juniper predicts that the gross global value of NFC transactions will exceed $110 billion by 2014.

However, the report's author warned that some important hurdles remain.

"Our research found that both the business model and rollout of POS (Point of Sale) NFC readers at merchant locations are issues that need solving," said Howard Wilcox, senior analyst at Juniper Research.

"As these are overcome NFC is poised to enter an operational build-up phase culminating in mass service rollouts across many countries, typically in metro areas driven by transport ticketing," he said.

Japan is already leading the way for developed countries with its FeliCa-based mobile wallet phone; by 2014 Juniper expects similar services to have gained traction in Western Europe and North America.

In the meantime, Juniper pointed out that a number of interim solutions that turn any handset into an NFC-capable device are already available.

These include electronic stickers containing NFC technology that can be affixed to a mobile handset and connect to the handset via Bluetooth.

German banknote provider and technology firm Giesecke & Devrient (G&D) on Monday unveiled its first contactless payment sticker, Convego Air Mobile, which can be attached to mobile phones.

However, rather than connecting to the handset, the sticker instead provides the same functionality as a credit or debit card.

"We expect Convego Air Mobile to speed up the market for contactless payment methods," said Axel Deininger, head of G&D's Payments division, in a statement

"By affixing the sticker to their cellphone, users can pay small amounts contactlessly, which means they do not have to carry as much cash on them," he said.

Stickers that turn any phone into an NFC-capable device could help boost uptake until phones with embedded NFC technology become widely available.

For instance, O2 in an NFC trial in the U.K. last year found that 85% of participants said the make and model of the handset would influence their decision to adopt NFC services.

Источник: Total Telecom

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