Mobile Wallet Payments Will Increase Twelvefold by 2017
HAMPSHIRE, U.K. -- More than one quarter of U.S. and Western European smartphone users will pay for goods by utilizing a mobile wallet in the next five years, according to a new report from Juniper Research. Mobile payments are expected to exceed $180 billion worldwide by 2017, the report, called "NFC Mobile Payments & Retail Marketing: Business Models & Forecasts 2012-2017," added.
The research firm predicted only 2 percent of in-store purchases would be made using a near field communications-enabled (NFC) phone this year.
Therefore, mobile wallet use should rise by more than 12 times in the next five years in the United States and Western Europe. Juniper said mobile wallet usage will increase due to an ability of consumers to tap an NFC phone against a point-of-sale (POS) terminal, something that has "tremendous user appeal."
However, the report cautioned that NFC retail payments must deploy with a fully integrated and tested customer care channel.
"NFC retail payments are still at an early stage, but hold great promise," said Dr. Windsor Holden, co-author of the research. "In 2011, we saw significant strides made with the ecosystem, such as the launch of the Google Wallet, the announcements of more mobile wallet consortia and the supply of an increasing number of NFC-enabled smartphone models. NFC is now impacting the public consciousness and we expect a rapid market expansion from 2012 onwards."