It is estimated that within 5 years 86% of POS terminals will be NFC enabled in North America. Europe and the rest of the world to see a penetration of 78% and 38% respectively.

We may only be in the early stages of NFC payment technology, but the market will continue to see rapid growth. The worldwide penetration of NFC payment availability was at 8% in 2011 but is expected to grow to 53% in 2017.  According to Berg Insight; a firm specializing in premier business intelligence for the telecom industry, NFC enabled point of sale terminals will grow from 3.9m to 43.4m, by 2017; with the US seeing the highest density.

The large 2011 market growth is attributed to the nationwide roll out of previous NFC pilot projects.

“The rapid growth was driven by a transition in the NFC-payments ecosystem from performing trials to accelerating the rollout of NFC-ready payment infrastructure, in preparation for the arrival of NFC-based mobile payment services,” say the forecasters at Berg.

The capabilities of NFC enabled POS terminals affect not only the whole payment ecosystem but also other important business aspects such as customer service and marketing, some of the reasons NFC is such an attractive market.

“Mobile wallet services will create an unprecedented opportunity for retailers to interact with consumers in real-time while their purchasing decisions are being formed, for instance by delivering personalized offers in real-time while consumers are inside the shop”, says Lars Kurkinen, telecom analyst at Berg Insight.

The Berg Insight report concluded 2 major details:

  • The emergence of mobile wallet services will be the most significant development in the payment industry in the preceding years.
  • The value-added services such as coupons, loyalty cards and good planning will be integrated into the daily POS terminal to allow a seamless experience for consumers.

Read the Berg Insight Report Summary

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