NFC payments a decade away from mass market, claims Forrester

Google Wallet: mobile contactless payment service
Google Wallet: mobile contactless payment service

Mobile contactless payment will not reach the mass market for another decade in the UK despite initiatives including Google Wallet, according to a report by technology analysts Forrester.

The market research company expects close to 100 million Near Field Communication (NFC) devices, which enable mobile contactless payment, to ship worldwide by the end of the year.

Some 35 million NFC devices were shipped last year, but Forrester predicts NFC devices will remain niche next year as well despite the expected tripling of the devices this year.

Forrester predicts the 2012 London Olympics, which includes a partnership between Samsung and Visa, will act as a "marketing catalyst" for contactless services.

However, the market research firm still believes critical mass, which it defines as more than 15% to 25% of the population, will not be reached for at least three to five years.

Forrester believes there are a number of reasons for the lag, including the current lack of viable business models and the fact that NFC alone won’t create a more convenient experience.

The report also claims acceptance infrastructure will take three more years to deploy, while equipping a quarter of consumers with NFC phones will take at least two more years.

It is argued by Forrester that closing the gap between NFC capability and NFC usage requires better marketing, including a standards-based, universal, and easily recognisable symbol for NFC services.

Contactless payment cards are currently outstripping the popularity of NFC devices, with Eurosmart predicting that 290 million contactless payment cards will ship in 2012.

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer