Global NFC retail transaction values are expected to reach USD110 billion in 2017, significantly below the USD180 billion previously forecast, a new study showed.
Juniper Research’s revised estimates also showed that the proportion of NFC-enabled smartphones will be marginally below previous estimates by 2017.
The research firm said this is partly due to Apple’s decision to omit an NFC chipset from the iPhone 5, which has reduced retailer and brand confidence in the technology and led to reduced Point of Sale (POS) rollouts and less NFC campaigns.
This will further lead to lower NFC visibility among consumers and fewer opportunities to make payments.
While the proportion of NFC-enabled smartphones is projected to be marginally below estimates by 2017, Global NFC retail transaction values are now expected to reach USD110 billion in 2017, a new study showed.
Dr. Windsor Holden, the report’s author said Apple’s decision is a significant blow for the technology, particularly given its previous successes in educating the wider public about the new mobile services.
“Without their support, it will be even more difficult to persuade consumers – and retailers – to embrace what amounts to a wholly new means of payment,” he said.
The report noted that Apple’s move would largely impact the market in North America and Western Europe, where NFC retail transaction values have a two-year lag on previous forecasts as retailers delay POS investments.
Moreover, lower than expected adoption of Google Wallet allied to a delayed launch of the ISIS NFC project in the US would also have a negative effect on that market.
However, in NFC’s heartland in Japan and Korea are likely to experience little or no impact.