HAMPSHIRE, U.K. - More than 25% of U.S. and Western European mobile phone users will pay for in-store purchases with Near Field Communications (NFC)-enabled mobile phones by 2017, according to a new report by Juniper Research, a research and analytical services firm.
The figure represents a substantial jump from the 2% of consumers who currently make NFC-enabled in-store purchases.
The report, "NFC Mobile Payments & Retail Marketing," attributes the growing acceptance of NFC payments to user appeal, with their personalized retail offers that extend beyond the capabilities of debit or credit cards.
The report cautions that the expansion of NFC retail payment services must be done with a "fully integrated and tested customer care channel," one that assures convenience as well as reliability.
"NFC retail payments are still at an early stage, but hold great promise," said report co-author Dr. Windsor Holden. "In 2011 we saw significant strides made within the ecosystem such as the launch of 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."