A new study from Juniper Research finds that near-field communication (NFC) retail payments will bring in over $180 billion globally by 2017.
The report looks at NFC in 2011 and notes a growing trend in the adoption of the technology by almost all handset manufacturers, as well as mobile operators and financial institutions committing to NFC pilots.
Juniper also highlights technology infrastructure standards being finalised, and the launch of Google Wallet in the US, as a driving indicator in the growth of the technology.
The report does warn, however, that challenges lie ahead as retailers remain unconvinced by the technology and are slow to adopt and invest in the infrastructure above conventional card technology.
Juniper comments that such retailers need to be educated, and commitment from other ecosystem players is needed.
“This is a critical time for the NFC retail payments market,” said report co-author, Dr Windsor Holden.
“Despite the significant progress being made today, the full potential of the market can only be fulfilled if all ecosystem players are equally committed and mobile wallet consortia remain in place.”
Juniper reported that by 2017, 25% of users in the US and Western Europe will be paying in-store using NFC, with a global NFC market bringing in over $180 billion.