Global NFC Transaction Market 2016-2020
About NFC Technology
NFC technology is a short-range (around10 centimeters) connection that adheres to technology standards and uses high-frequency wireless communication technology to exchange data between devices. It has revolutionized the ways in which people access and use information. NFC-enabled devices are used for applications such as mobile payment, ID authentication, transportation, and loyalty programs.
Technavio’s analysts forecast the global NFC transaction market to grow at a CAGR of 55.23% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global NFC transaction market for 2016-2020. To calculate the market size, the report considers the revenue generated from the NFC transaction done through mobile devices and wearables.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global NFC Transaction Market 2016-2020
Technavio recognizes the following companies as the key players in the global NFC transaction market: Apple, Google, MasterCard, PayPal, Samsung, and Visa.
Other Prominent Vendors in the market are: American Express, Broadcom, Gemalto, Infineon Technologies, INSIDE Secure, MediaTek, Nokia, NXP Semiconductors, Qualcomm, and Renesas Electronics.
Commenting on the report, an analyst from Technavio’s team said: “The emergence of host card emulation (HCE) is one of the latest trends leading to market growth. HCE is an on-device technology that enables mobile or a wearable device to perform card emulation on an NFC-enabled device without relying on access to a secure element (SE). The introduction of NFC platforms based on HCE has potentially high implications for NFC stakeholders, provided it would reshape both; the value chain and the attendant business models. Also, the additional security provided by the inbuilt security feature of smartphones such as fingerprint reader, and iris scanner act as an additional layer of security for HCE.”
According to the report, extensive use of mobile devices for payments will be a key driver for market growth. Mobile payments have become popular with the increased adoption of mobile devices and wearables. Vendors are deploying NFC POS terminals as they are flexible and facilitate hassle-free mobile payments. The NFC POS terminals also increase the value proposition and effectiveness of their marketing efforts. Thus, the growing implementation of NFC POS terminals at retail outlets is expected to boost the growth the market during the forecast period.
Further, the report states that despite NFC being more secure than any other form of payment technology, including magnetic strip cards and debit cards, the adoption of NFC payment among consumers using smartphones continues to be slow. This is because of the popularity of alternative contactless payment solutions, which pose a challenge for NFC payment vendors. Market vendors need to ensure that payments through mobile wallets and NFC terminals must offer value-added services such as promotional discounts, coupons, and loyalty schemes to attract and benefit the end-users.
Apple, Google, MasterCard, PayPal, Samsung, Visa, American Express, Broadcom, Gemalto, Infineon Technologies, INSIDE Secure, MediaTek, Nokia, NXP Semiconductors, Qualcomm, Renesas Electronics.