Tuesday, 12 April 2016 00:34

Mobile and wearable contactless payments to hit nearly $100 billion by 2018

By

With watches, wristbands, NFC handsets, payment cards and contactless payments all the rage and only growing, reaching nearly $100 billion annually by 2018 seems assured.

A new study from Juniper Research has found that the global value of mobile and wearable contactless payments is expected to reach $95 billion annually by 2018, up from less than $35 billion last year.

This is detailed in Juniper’s new research, dubbed ‘Contactless Payments: NFC Handsets, Wearables & Payment Cards 2016-2020,’ and as usual, on sale to relevant parties at relevant prices.

The research and analyst gurus explained that ‘the emergence of a range of connected wearables has piqued the interest of NFC stakeholders,’ and its research ‘anticipated that devices such as watches and wristbands would be in the vanguard of these developments, although it cautioned that the sector would take several years to reach critical mass.’

In addition, the research pointed out that ‘while nearly 9 million Apple Watches had been shipped by the end of 2015, these numbers were dwarfed by NFC-capable iPhones. As a result, it said that wearables as a whole would not account for more than 2% of non-card contactless payments by value in 2018.’

While Mobile Network Operators get further squeezed, Apple leads the way, explained Juniper.

Meanwhile, the company’s research ‘pointed to a sea change in the NFC ecosystem, with several vendors now following in the footsteps of Apple and embedding secure elements within the smartphone. It argued that this approach further weakened the contactless prospects for mobile network operators, which were effectively being cut out of the value chain.’

Although Samsung is the only other OEM to date to launch an own-brand contactless payment service, said Juniper, ‘Xiaomi has filed patents for such a service, while both ZTE and Lenovo have begun rolling out eSEs (embedded secure elements) in selected handsets.’

According to research co-author Nitin Bhas, “Most operator-led pilots and commercial ventures have now closed down. Apple’s entry into NFC gave the industry a much needed boost, and could well be seen as the tipping point for the technology, but at the same time it sounded the death knell for the mobile operator projects.”

More below, please read on!

The company said its latest edition of Contactless Payments ‘provides the most comprehensive research available today. It assesses how the dynamics of the ecosystem have changed over the years, analysing deployments and also the future role of vendors, banks and network operators.’

The research covers:

  • Contactless Payment Cards
  • Contactless Mobile & Wearable Retail Payments
  • NFC Ticketing & Coupons

The research suite comprises:

  • Market Trends & Competitive Landscape (PDF)
  • 5 Year Market Sizing & Forecast (PDF & Excel)
  • Executive Summary & Core Findings (PDF)

As usual, there is an accompanying whitepaper with more detail to tempt relevant parties into making the relevant purchase of the full research report.

The whitepaper is dubbed ‘NFC ~ No Contact Required’ and can be downloaded free of charge from Juniper’s site.


Subscribe to ITWIRE UPDATE Newsletter here

GRAND OPENING OF THE ITWIRE SHOP

The much awaited iTWire Shop is now open to our readers.

Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.

PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.

Products available for any country.

We hope you enjoy and find value in the much anticipated iTWire Shop.

ENTER THE SHOP NOW!

INTRODUCING ITWIRE TV

iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the iTWire.com site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.

SEE WHAT'S ON ITWIRE TV NOW!

BACK TO HOME PAGE
Alex Zaharov-Reutt

Alex Zaharov-Reutt is iTWire's Technology Editor is one of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

Share News tips for the iTWire Journalists? Your tip will be anonymous

WEBINARS ONLINE & ON-DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News

Comments