NEW YORK, July 12, 2011 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:
Introduction
NFC Payments Tapping the Future provides an overview of the current state of the global Near Fields Communications payments sector. This includes detailed customer segmentation of likely adopters of NFC, an assessment of some of the key opportunities and threats facing the future of this new payments technology, and key takeaways for issuers who want to harness the potential of NFC.
Features and benefits
Understand what NFC can mean for your business by learning about how it works and its potential applications.
Plan your strategy effectively by learning about key target demographics and who NFC is most likely to appeal to.
Cut through the hype and assess what the latest developments from major players means for your company in the short, medium and long term.
Build your business case by understanding the key hurdles and obstacles that stand in the way of full NFC implementation.
Highlights
The global Near Field Communications market is finally seeing significant commercial launches of hardware and services after years of trials and speculation. However even with significant players such as Google, Apple, Nokia, Orange, and others becoming involved, these launches are more of an evolutionary step than a revolution.
According to Datamonitor's NFC Adoption model only 1.8% of consumers globally are likely to immediately adopt NFC payments once it is released. However a further 12.2% and 31.7% show a medium to low likelihood of immediate of adoption. This suggests that with the right incentives and marketing, the longer term opportunity remains significant.
NFC must overcome significant barriers with issuers, consumers and merchants. In the case of issuers and merchants the business case remains unclear, and investment in services or acceptance hardware will remain subdued as a result. Consumers will require incentives to shift them from existing payment tools.
Your key questions answered
What is the business case for NFC and mobile contactless? How do players involved plan on making money?
What is happening now in NFC? Is it really a revolution in payments?
Who is launching NFC services? What do their models and strategies mean for the payments industry?
Who is likely to be interested in NFC? is NFC suitable for all consumers?
What impact will the hardware have on the NFC market? Is the technology ready?
Executive Summary
An NFC ecosystem is finally emerging
Introduction
Five key findings for the payments industry
NFC is only one of several forms of mobile payment
The NFC ecosystem is being shaped by hardware and services launches from major players
Mobile wallets are emerging as a key battleground in NFC payments
Understanding the NFC consumer
Datamonitor's NFC Adoption Model sizes the target market for NFC
Early adopters of NFC will come from the banked and older age groupings
The initial opportunity in NFC payments lies in meeting the needs of highly likely adopters
The three key obstacles that NFC must overcome
The business case for issuers is weak
The consumer proposition needs to be strengthened
Merchants are skeptical and this is limiting growth in contactless acceptance
OVERVIEW
Catalyst
Summary
AN NFC ECOSYSTEM IS FINALLY EMERGING
Introduction
This report is an objective analysis of the opportunities for NFC in mid-2011
NFC is only one of several forms of mobile payment
NFC sits alongside P2P and m-commerce as a key form of mobile payment
NFC standards are still evolving but the NFC Forum is playing a leading role
NFC technology can be used for more than just payments
The NFC ecosystem is being shaped by hardware and services launches from major players
Commercially available NFC handsets are now in the market
NFC's growth will be driven by the wider use of smartphones, but will take time to reach critical mass
Smartphones are growing as a share of the market
All of the major handset manufacturers have announced NFC models
While the availability of handsets is expanding, developers are still working out what to do with NFC
An NFC version of popular game Angry Birds will act as a showcase for the technology to Nokia customers
Google is opening up some modes to app developers, but not card emulation
Couponing is emerging as a major driver of future NFC use
Mobile wallets are emerging as a key battleground in NFC payments
Mobile operators have made the first moves in developing mobile wallets
UNDERSTANDING THE NFC CONSUMER
Datamonitor's NFC Adoption Model sizes the target market for NFC
The NFC Adoption Model identifies three target consumer groupings for NFC based on current behavior
Early adopters of NFC will come from the banked, and older age groupings
Less than 2% of consumers are highly likely to adopt NFC payments immediately
The number of consumers with a high likelihood of adoption is limited in all countries
The initial opportunity in NFC payments lies in meeting the needs of highly likely adopters
Highly likely NFC adopters are over the age of 25
Likely NFC adopters hold secure employment and make more money
THE THREE KEY OBSTACLES THAT NFC MUST OVERCOME
Introduction
The business case for card issuers is weak
The secure element remains up for grabs and is central to the future NFC business model
This complexity has also led to a growing role for third-party trusted service managers
The business case is mainly focused outside of both merchants and issuers
The consumer proposition needs to be strengthened
NFC will need to be easier, cheaper, faster, and more convenient than existing payment tools
Mobile wallets are the likely driver of NFC convenience
The consumer proposition will need to include incentives
Consumer interest in NFC has not been proven in trials
Japanese uptake of NFC has been weak, and the market is now driving growth through incentives
Many merchants are skeptical and this is limiting growth in contactless acceptance
Most consumers are still not using contactless
Contactless acceptance infrastructure growth is restricted by hardware lifecycles and merchant concerns on interchange
APPENDIX
Additional data
Near field communication (NFC) adoption by country
NFC adoption by demographic status
Consumer use and attitudes to contactless cards
Definitions
Credit card
Debit card
European Payments Council (EPC)
ePurse/eWallet
Interchange
Merchant service charge (MSC)
Mobile network operator (MNO)
Mobile payments
Person-to-person (P2P) payments
Point-of-sale (POS) terminal
Prepaid card
Stored value card
Trusted service manager (TSM)
Methodology
Further reading
Selected bibliography
Ask the analyst
Datamonitor consulting
Disclaimer
To order this report:
Nicolas Bombourg
Reportlinker
Email: nbo@reportlinker.com
US: (805)652-2626
Intl: +1 805-652-2626
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