Global Sweep: NFC Technology to Redefine
Smartphone Services

New research report by Mercator Advisory Group looks at the future development of International Near Field Communication markets

Boston, MA — Designed to support wireless and contactless data communciations with another competible device within a short range, NFC-enabled devices are clean, quick, and convenient ways to carry out tasks such as payments, ticketing, loyalty, among others.

Mercator Advisory Group’s latest research provides an up-to-date view of developments, issues, and trends in Near Field Communications-based products and services worldwide.

The Global Sweep: NFC Technology to Redefine Smartphone Services report examines recent developments in the handset market, forecasts the handset market out to 2015 under different scenarios and provides an economic analysis of the business model of Near Field Communications (NFC) mobile payments for mobile network operators.

Broadening the scope of this report, potential revenue sources other than payments and a survey of key markets most likely to see the first wave of NFC mobile payments are included.

NFC means a lot to the mobile industry. Not just that it can bring in payments revenues but as a foundation for a whole set of services that allow consumers to interact with the physical environments around them using their mobile handsets,” Terry Xie, Director of Mercator Advisory Group’s International Advisory Service and principal analyst on the report, comments. “Mobile Network Operators should not expect to see tremendous revenues from payments any time soon. But MNOs are realizing that the possibilities brought about by NFC are just too important to future businesses.”

Highlights of the report include:

After years of delay, the NFC market appears to finally heating up as industry players work out plans to best position themselves for the expected arrival of NFC in 2011.

Mercator forecasts that a total of 116 million smartphones equipped with NFC will be shipped in 2011 barring a major setback. The number will more than double in 2012 to reach about 260 million. The annual shipment of NFC smartphones will reach more than 510 million in 2015.

Consumer adoption of NFC-based services will likely lag behind the penetration of NFC devices. Most consumers probably won’t see the value of NFC until 2012, when related services and infrastructures are in place along with ample applications.

While payments remain the core of NFC-based services, MNOs will find it hard to rely solely on payment-related revenues to break even from NFC investments. Merchant rewards programs, public transit ticketing, and alternative payments, among others, will also be important parts of the NFC business models.

One of the 3 exhibits included in this report:

This report contains 29 pages and 3 exhibits.

Companies that are mentioned in or that contributed to the report include but are not limited to: Apple, AT&T, Barclaycard, Bling Nation, Broadcom, China Mobile, China UnionPay, DeviceFidelity, Discover, Google, KT, MasterCard, Nokia, Orange, Paypal, SK Telecom, T Mobile, Verifone, Verizon, Visa.


Members of Mercator Advisory Group have access to this report as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits.

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About Mercator Advisory Group
Mercator Advisory Group is the leading, independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world’s largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors.