DALLAS — Within the next few years, near field communication (NFC) will become a standard feature on smartphones, as consumers show more interest in the “mobile wallet” to make payments, according to a new report.
The report, “Mobile Payment: Technologies and Business Models,” by Dallas-based research firm Parks Associates shows that 50-percent of smartphone owners in the United States find the NFC-enabled mobile wallet appealing.
One reason for the interest in NFC-enabled phones is the convenience factor, according to Harry Wang, director, mobile research, Parks Associates.
“The convenience of e-Wallet solutions eliminates the need to carry multiple or any credit cards,” he says. “It’s driving the consumer interest.”
Report findings also validate the statement, as 16-percent of smartphone owners use PayPal or other types of e-Wallet solutions as their preferred method of mobile payments. Additionally, one in four Millennials (employees born between 1980 and 2000) use their mobile phones to research products or services prior to making a purchase regularly.
These factors will create a commerce opportunity on smartphones of more than $800 billion in 2015, according to the report. It will also boost business for merchants, retailers, financial institutions and mobile carriers. As it stands, Amazon.com and eBay reported robust mobile eCommerce growth in 2011. Meanwhile, Siemens recently announced its new walletXpress mobile payment platform.
“We are witnessing a groundswell of activities in the mobile payment industry,” Wang says. “Visa is engaged with payment solution providers, and Google recently launched its Wallet app, which integrates with its Offers service. Isis, a joint venture between AT&T, T-Mobile and Verizon, expanded its business model to include more payment partners. Each deal signals serious interest from all parties to build scale and technology advantage over competing solutions.”
For more information, click here.