Category: Mobile Payments

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.

Apple may be working on an alternative to NFC technology

| October 21, 2012

 

Apple NewsApple awarded patent for new technology

Apple may have caught a lot of flak for not including NFC technology in the iPhone 5, but the company’s decision to forgo the technology does not mean it is not interested in NFC. The next iteration of the iPhone may be equipped with NFC technology, or a nearly identical technology that is developed by Apple itself. This is according to a new patent that has been awarded to Apple by the U.S. Patent and Trademark Office.

Company receives harsh criticism for decision to avoid NFC technology

NFC technology is all the rage in the mobile world right now because of its capabilities in commerce and data exchange. Samsung has made headlines with its NFC-enabled Galaxy S III and Apple fans were hoping that the new iPhone would be able to compete on the same level as Samsung’s latest device. Apple fans were disappointed, however, when the company announced that the iPhone 5 would not be equipped with NFC technology. This led to harsh criticisms, but Apple is not abandoning the technology entirely like many have speculated.

Patent highlights technology very similar to NFC

According to the new patent, Apple is currently developing a device that makes use of a proximity technology, either NFC or one developed by the company itself. If the patent is not in reference to NFC technology, Apple will be developing something very similar that is capable of facilitating wireless data transfers between mobile devices. Speculation suggests that this technology would be included in the next version of the iPhone.

New technology may be suitable for Apple’s interests in mobile commerce

Apple chose to sidestep NFC technology due to concerns regarding security. The technology itself does not boast of any stellar security features, leading Apple to believe that its use in mobile commerce and data exchange is too ambitious. If Apple decides to develop its own technology, it will likely feature a variety of security measures that will make its use in mobile commerce more viable and appealing to consumers worries about the protection of their financial information.