NFC struggles to gain adoption but mobile transactions continue to increase

In a recent report, Gartner has reduced its predicted transaction value of Near Field Communications (NFC) technology by 40% due to its struggle to gain adoption in 2012.

In a recent report, Gartner has reduced its predicted transaction value of Near Field Communications (NFC) technology by 40% due to its struggle to gain adoption in 2012.

Gartner forecasts that NFC technology will account for only 2% of the total transaction value for mobile payments in 2013, and 5% in 2017.

In contrast, money transfers will account for 71% of the total transaction value this year due to users transacting more frequently. A wider availability of services and low transaction costs has contributed to this.

Bill payment value is predicted to increase by 44% in 2013 as more consumers in developing markets carry out bill payments via mobile banking services. They will account for 5% of the total value forecast for 2017.

Gartner expects Asia Pacific to become the largest region by transaction value, with a forecast value of $74bn in 2013, eventually reaching $165bn by 2016.

The low adoption of NFC technology has had an impact on North America’s transaction value which is only expected to reach $37bn in 2013.

Western Europe’s transaction value is forecast to reach $29bn in 2013.

The worldwide transaction value of mobile payments is expected to increase by 44%, reaching $235.4bn in 2013. The number of mobile payment users around the world will increase from $200m in 2008 to $245m in 2013.

Research director at Gartner, Sandy Shen, said: "We expect global mobile transaction volume and value to average 35% annual growth between 2012 and 2017, and we are forecasting a market worth $721bn with more than 450m users by 2017."

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