Tag: abi research

NFC technology expected to become more common in coming years

| November 29, 2012

 

NFC technology poised for market boom

NFC technology is becomiNFC Technology Growthng more commonplace as consumers become more comfortable with the services it can provide. The technology is well known for its use in mobile commerce, wherein it is able to facilitate mobile payments from smart phones for physical products. The technology also has uses in marketing and information distribution and is quickly becoming an ideal way for companies to stay engaged with mobile consumers. Despite the growing popularity of NFC technology, relatively few consumers can engage in the services it provides because of the lack of NFC-enabled mobile devices.

NFC-enabled devices currently in low supply

In order for consumers to make use of NFC-based services, they must have a device that is equipped with an NFC chip. This chip allows a device to interface with a payments terminal, NFC tag, or other service that relies on the technology. Currently, the availability of NFC-enabled mobile devices is low, with the majority of such devices encompassed in the Android platform. The iOS platform does not support NFC technology despite growing demand coming from consumers. The lack of NFC-enabled devices has made it difficult for mobile commerce and other NFC-based services to gain traction with consumers.

ABI Research predicts 2 billion NFC-enabled devices by 2017

According to ABI Research, the availability of NFC-enabled mobile devices is expected to grow exponentially over the next few years. This is due to telecommunications and technology companies heeding the demands coming from consumers and working to meet their needs. The research firm expects more than 2 billion smart phones will be equipped with NFC technology by 2017. Shipments of NFC-enabled devices are expected to pick up as well as these products exit their trail phase and companies deem them commercially viable.

New devices expected to make NFC technology more familiar with consumers

With the availability of NFC-enabled devices on the rise, more consumers are expected to gain access to the wide array of NFC-based services that are being offered to them. There may be some challenges that companies and consumers will have to overcome, especially in the realm of mobile commerce, but NFC technology is expected to become a staple of mobile technology and service in the near future.

ABI Research predicts major growth in mobile payments

| October 22, 2012

 ABI Research releases new report concerning growth of NFC-based mobile payments

NFC-based mobile payments are expected to see a massive boom in the coming years, according to a new report from ABI Research. Mobile commerce has been growing in popularity with consumers, leading many to believe that mobile payments are far more convenient than traditional forms of commerce. Consumers are gaining access to a growing variety of NFC-enabled mobile devices, which is boosting their exposure to mobile commerce. ABI Research predicts that this exposure will drive growth behind the burgeoning industry.

Report shows growth despite concerns regarding NFC technology

According to the firm’s report, the total value of NFC-based mobile payments will reach $100 billion by 2016. This prediction accounts for the swelling tide of criticism that has been directed at NFC technology recently. Critics of the technology claim that it is not safe enough for mobile commerce, with others suggesting that it is simply not capable of handling the needs Mobile Payments Growth Trendof consumers. While some of these concerns have slowed the progress of the mobile commerce industry, which is heavily based on NFC technology, ABI Research expects that the industry will continue to grow well into the future.

Predictions may be derailed by new technologies and platforms

The report shows that NFC-based mobile payments are currently valued at $4 billion for this year. ABI Research estimates that this will blossom to $191 billion by the end of 2017. After this point, mobile commerce may see its progress and expansion slow somewhat, but continue to grow nonetheless. It is possible for this prediction to be derailed due to the emergence of a new technology or mobile payment platform that does not use NFC technology, a prospect that is becoming more possible with every passing day.

More companies beginning to look for alternative to NFC technology

Because of the problems associated with NFC technology, companies that are interested in mobile commerce, such as PayPal and Apple, are developing their own platforms for mobile payments. These companies are forgoing the use of NFC technology to allow consumers to make payments with mobile devices in a different way. If these technologies manage to capture the interest of consumers at large, the growth of NFC-based mobile payments may turn out very different than what ABI Research predicts.