Mobile Payment Technology (Near Field Communication) - Remote and Proximity M-payments Market Forecast (2010 - 2015)
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The market for NFC (Near Field Communication) mobile payments in the U.S. is in the nascent stage with an adoption rate of only 1.7%; this represents a huge opportunity for early movers offering the same. Adopting NFC mobile payment will open new revenue channels for banks as well as mobile operators as more than 94% of the U.S. population owns a mobile phone, and 60% of these have a card slot in their mobile phone. With the help of NFC technology, banks will be able to tap micro transactions made by cash, representing around 20% of the total transactions in the U.S. This will also help banks to capture the growing GEN Y population as well as the huge underbanked and unbanked population.
In 2009, the value of mobile payment transactions in the U.S. was $5.2 billion, constituting 6% of the global value of mobile payment transactions; this is expected to reach $56.7 in 2015, growing at a CAGR of 49.19%. The share of U.S in 2015 will reach approximately 10.6% of the global mobile payment transaction.
The major drivers are increasing merchant efficiency and customer convenience, and reducing operational and infrastructural costs for banks. Adopting NFC mobile payments will be a good green initiative as the number of paper based transactions will reduce. Increase in the production of NFC enabled mobile phones and the number of mobile phone users in the U.S. will lead to an increase in the adoption of mobile payments in the U.S.
Scope of the report
This section discusses the opportunities for Near Field Communication (NFC) based mobile payments, their market estimates, and market structure. It also discusses winning imperatives, following which a stakeholder can gain a healthy market share in the U.S. mobile payment market and increase its revenues. The section also discusses and analyzes major business models for mobile payments and suggests the best one to increase the adoption of mobile payments in the U.S. It also discusses the value proposition of NFC mobile payments for various stakeholders. This section analyzes the most important driving factors for the mobile proximity payment channel along with its key challenges. It covers the major developments by banks as well as vendors to increase the adoption of NFC mobile payments in the U.S.
Business case studies
Two case studies have been included; the first one discusses strategic measures adopted by The State Bank of La Junta, Colorado to enhance its geographic reach and remain competitive in the small business and retail segment by offering NFC mobile payments.
The second case study discusses measures by VISA, a leading network provider, to increase the adoption of mobile payments, and the impact of those measures on all the stakeholders involved.
The section benchmarks and profiles vendors who are application providers for banks and NFC hardware and MicroSD card manufacturers. It includes a brief introduction, major products offered, and their recent developments.
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Key questions answered
- Which model is going to drive the adoption of NFC mobile payments in U.S.?
- What is the current and potential market for NFC based proximity mobile payments in U.S.?
- What are the drivers and restraints faced by NFC mobile payment market in U.S.?
- What are the strategies followed by vendors as well as banks to increase the adoption of NFC based mobile payments in U.S.?
Powerful Research and analysis
The analysts working with MarketsandMarkets come from renowned publishers and market research firms globally, adding their expertise and domain understanding. We get the facts from over 22,000 news and information sources, a huge database of key industry participants and draw on our relationships with more than 900 market research companies.
Table of contents
Factors driving adoption of NFC mobile payments
Factors restraining adoption of NFC mobile payments
Choosing the right business model
1.1 Report Catalyst
1.2 Report structure
1.3 Research Objectives
1.4 Research Methodology
2 Strategy Formulation
2.1 Mobile payments ¨C Market structure
2.1.1 Defining mobile payments
2.1.2 NFC based mobile payments - evolving market in the U.S.
2.2 segmentation of U.S. Payments market by type and size
2.3 Opportunity for NFC Based payments- Huge Cash Transactions
2.4 Mobile payments - market estimate
2.4.1 market size and growth trends of Mobile payments
2.4.2 market size and growth trends of Proximity mobile payments
2.5 Winning Imperatives for deploying NFC mobile payments
2.5.1 Evaluating business models for deploying NFC mobile paymentS
126.96.36.199 Operator dominated model
188.8.131.52.1 Benefits and drawbacks
184.108.40.206 Financial institution dominated model
220.127.116.11.1 Benefits and drawbacks
18.104.22.168 Collaborative model
22.214.171.124.1 Benefits and drawbacks
2.5.2 Risk and benefit analysis for various stakeholders
126.96.36.199 Collaborative model is best for all stakeholders
188.8.131.52.1 Collaborative model value chain
2.6 Value proposition of NFC mobile payments
2.6.2 Mobile operators
2.6.4 Application developers & manufacturers
2.7 NFC is the Future of mobile payments
2.7.1 Competitive developments in NFC and mobile payments
2.7.2 Strategies adopted by banks to increase the adoption of Proximity mobile payments
2.8 future outlook OF Mobile payments market
2.8.1 mobile payments market dynamics
184.108.40.206 Factors supporting the demand for mobile payments
220.127.116.11.1 Social networking and gaming improves the demand for mobile payments
18.104.22.168.2 Increase in the number of mobile phone users
22.214.171.124.3 Growing penetration of mobile financial services among mobile phone users
126.96.36.199 Factors hampering adoption of mobile payments
188.8.131.52.1 No legal framework and lack of unified standards specific to mobile banking
184.108.40.206.2 Security and authentication issues hampering adoption of mobile payments
220.127.116.11.3 Extensive banking network and excellent infrastructure
18.104.22.168.4 Integrating diverse stakeholders remains a challenge for banks
3 Case studies
3.1 The state Bank of Colorado implements contactless Mobile payment service
3.1.2 The State Bank of Colorado
3.1.3 Purpose of offering mobile payments
3.1.4 Collaborating with Bling Nation to fulfill the objectives
3.1.5 More business accounts and satisfied customers
3.1.6 Reduction in processing cost FOR merchants and increase in convenience for customers
3.2 initiatives taken by Visa & DeviceFidelity to boost adoption of proximity mobile payments
3.2.2 About VISA
3.2.3 About DeviceFidelity
3.2.4 Reason FOR offering NFC mobile payments
3.2.5 Visa selects DeviceFidelity for NFc mobile payments
3.2.6 VISa selects Apple¡¯s iPhone due to its popularity
3.2.7 positive Impact on bank¡¯s revenues and its customers
3.2.8 Increase in convenience for consumers
3.2.9 Impact on profitability and efficiency of merchants
3.2.10 Benefits for DeviceFidelity
4 Vendor analysis
4.1 Key findings
4.2 Vendor benchmarking
4.2.1 Technological Benchmarking
22.214.171.124 Trusted service manager/application provider
126.96.36.199 NFC Hardware and Sticker/MicroSD card manufacturers
4.2.2 Benchmarking based on services provided
188.8.131.52 Trusted service manager/application provider
184.108.40.206 NFC Hardware and Sticker/MicroSD card manufacturers
4.2.3 Benchmarking based on the features and security aspects
4.3 Vendor profiling
4.3.1 Bling Nation
220.127.116.11 Products and services
18.104.22.168 Recent developments
22.214.171.124 Products and services
126.96.36.199 Recent developments
188.8.131.52 Products and services
184.108.40.206 Recent developments
220.127.116.11 Products and services
18.104.22.168 Recent developments
22.214.171.124 Products and services
126.96.36.199 Recent developments
188.8.131.52 Products and services
184.108.40.206 Recent developments
220.127.116.11 Products and services
18.104.22.168 Recent developments
4.3.8 INSIDE Contactless
22.214.171.124 Products and services
126.96.36.199 Recent developments
4.3.9 SYBASE 365
188.8.131.52 Products and services
184.108.40.206 Recent developments
220.127.116.11 Products and services
18.104.22.168 Recent developments
List of Tables
TABLE 1 Risk and benefits for stakeholders
TABLE 2 Value chain for collaborative model
TABLE 3 Description of various mobile payment technologies
TABLE 4 Initiatives to increase adoption of mobile payments
TABLE 5 Initiatives towards the adoption of mobile payments
List of FIGURES
FIGURE 1 Mobile commerce market structure
FIGURE 2 Mobile payments market structure
FIGURE 3 evolution of mobile payments applications
FIGURE 4 Payment market segmentation on the basis of transaction size & type (2009)
FIGURE 5 nfc opportunities at cash payment locations in THE U.s. (2008)
FIGURE 6 Share of payment modes by value of transaction (2009)
FIGURE 7 Cash transactions at various payment locations in THE U.S. (2008)
FIGURE 8 mobile payments - high growth market in THE U.S.
FIGURE 9 Global and U.S. Mobile payments transaction value from (2007-2015)
FIGURE 10 Remote and Proximity M-payments market forecast (2009 ¨C 2015)
FIGURE 11 Key winning fields for deploying mobile payments successfully in THE U.s.
FIGURE 12 Operator dominated mobile payment model
FIGURE 13 Financial institution dominated mobile payment model
FIGURE 14 Collaborative mobile payment model
FIGURE 15 Evolution of NFC technology
FIGURE 16 Adoption of mobile payment by applications (2010)
FIGURE 17 Factors impacting adoption of Nfc mobile payments in the U.S.
FIGURE 18 Increasing user base of Mobile phones (2000-2010)
FIGURE 19 increasing Global NFC enabled mobile phone shipments (2008¨C2015)
FIGURE 20 increaisng adoption of mobile financial services (2008 ¨C 2015)