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06-05-2013, 12:09 AM #1
Gartner: Mobile Payments Continue to Grow, NFC and Google Payments Don't Help Much
As mobile payment transactions are on pace to hit $235.4 billion in 2013, it has been noted that this is mainly through money transfers and that NFC payments and services such as Google Wallet have failed to gain much traction. Gartner recently published its latest forecast on worldwide mobile payment transaction values, calling for this year to see a 44% increase from the $163.1 billion in mobile payments made in 2012. Money transfers alone were projected to account for about 71% of total transaction value in 2013.
On the other hand, near-field communication and e-wallet transactions are only forecast to account for 2% of total mobile transaction value in 2013. This is because high-profile NFC services such as Google Wallet and Isis aren’t catching on with consumers according to Gartner. In fact, the research firm has reduced projected NFC transaction value by 40% for its forecast period, which runs through 2017. By then, Gartner believes that NFC payments will still only account for 5% of total mobile transaction value.
Rumors of Apple adopting NFC technology in the iPhone have been persistent for several years but Apple has instead chosen to avoid wireless “tap to pay” so far. Security concerns associated with NFC have mainly been cited as a reason for Apple’s lack of support. Instead, Apple ended up introducing Passbook, a new feature that was released with iOS 6 that collects store cards, coupons, boarding passes, and event tickets. Some industry watchers have speculated that Passbook sets the stage for Apple to introduce e-wallet functionality to the iPhone but the company hasn’t made any move regarding the matter, at least as of yet.
Although NFC remains a niche, money transfers are expected to remain the predominant use for mobile transactions, remaining at 69% of total value in 2017. Most of the growth comes from money transfers as users have begun to transact much more frequently at lower values due to the availability of services. Mobile transfer services also frequently see lower transaction costs than traditional banks. The forecast calls for merchandise purchases to account for 21% of total mobile transaction value in 2013. Growth in the segment has been stifled because “the buying experience on mobile devices has yet to be optimized” according to Gartner.
One of the expected large growth segments in 2013 is a mobile bill payment, which the forecast suggests could grow 44% this year. The firm noted that more consumers in developed markets are performing bill payments via mobile banking services and bill payments will grow to account for 5% of total mobile payment value in 2017. According to research director Sandy Shen at Gartner:
We expect global mobile transaction volume and value to average 35 percent annual growth between 2012 and 2017, and we are forecasting a market worth $721 billion with more than 450 million users by 2017. Nevertheless, we have lowered the forecast of total transaction value for the forecast period due to lower-than-expected growth in 2012, especially in North America and Africa.
Source: Gartner via AppleInsider
06-05-2013, 12:46 AM #2
No way, NFC isn't big? Never would've guessed by all the people tapping there phones together in public :sarcasm:
06-05-2013, 02:25 AM #3
Yeah, got it on my debit card - have had for some time. Never even used it once.
06-05-2013, 04:46 AM #4
I WISH I had this option. I hate carrying around a fat wallet with cash n cards. I hope one day I can carry everything on my phone, or at least a single card.mod edit/links removed
06-05-2013, 10:17 AM #5
NFC is basically a public relations failure
06-05-2013, 11:02 AM #6
NFC has clearly been underwhelming in it's adoption; although having just received a new credit card with NFC capability for the first time, which I have in the back of my iPhone case(it holds two cards - DL and my CC), tapping my iPhone at check out and not having to remove my wallet or the CC from my wallet (or iPhone) is a great experience. Also, since my iPhone doesn't have NFC, I still have to input the 8 digit numbers every time I pay at a parking meter.
Some of the slow adoption and FUD reminds me of the early buzz on Bluetooth; although only time will tell if NFC follows the Bluetooth adoption or some other over hyped technology, that I can't even remember right now.
06-05-2013, 03:23 PM #7
06-05-2013, 06:22 PM #8
After using this on my nexus 4, it just seems silly that apple didn't include it with the iPhone and passbook. It's true that there are not enough places that accept it, but there are way more than I thought before I started using it. Anywhere that has one of those MasterCard pay pass logos will take it. This doesn't completely do away with a wallet or the need to carry a drivers license or some cash, but in a world where the readers become more widespread, the fewer things you have to keep in your wallet the better.Only those who attempt the absurd will achieve the impossible. -- M.C. Escher
The greatest obstacle to discovery is not ignorance; it is the illusion of knowledge. -- D.J. Boorstin