According to a new report from Strategy Analytics, the value of transactions conducted via NFC handsets will grow from USD 30 billion in 2016 to USD 45 billion in 2017, USD 70 billion in 2018, USD 110 billion in 2019, USD 160 billion in 2020 and USD 240 billion in 2021.
Increasing competition between mobile wallets from device vendors Apple and Samsung, payment card issuers, and mobile operators, combined with a maturing contactless payment infrastructure across most regions, will finally catalyze in-store handset-based NFC purchases, the analysts say.
Furthermore, Strategy Analytics expects consumer readiness to adopt mobile payments to improve as providers of mobile wallets increasingly support coupons and loyalty cards.
Transport for London has highlighted the importance of wide reaching contactless payment acceptance in driving adoption and use. With 3% of all journeys paid for using contactless driven by mobile phones in December 2015, just six months after the launch of Apple Pay, it is clear that NFC-based payments have strong potential for future growth.
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