Mobile Payments, NFC, and Contactless Convergence

Research Analysis

The opportunities and new revenue streams that NFC payments will potentially open up is certain to drive market convergence. The multi-application nature of NFC gives stakeholders the ability to offer added value services through NFC applications, in turn creating new business partnerships, additional new service offerings such as retail and loyalty applications, allowing NFC service providers the option to access new and additional markets to which may have previously been out of reach. Ticketing, retail and, loyalty and access control are increasingly looking like those applications set to advance and benefit the most from NFC. Payments will certainly be a primary driver for market convergence, but it will not stop there. This report analyzes those markets that have potential for market convergence, the benefits and drivers of convergence and those business groups and market sectors that will experience the greatest returns.

Table of Contents

  • 1. NFC WILL DRIVE MARKET CONVERGENCE
    • 1.1. NFC Convergence Introduction Market Overview
    • 1.2. NFC Market Overview and Update
    • 1.3. NFC Market Summary
    • 1.4. Market Convergence Top Level Findings
  • 2. WHAT CONVERGENCE CAN NFC BRING?
    • 2.1. Why Can NFC Deliver Market Convergence
    • 2.2. Who is Pushing for Market Convergence and Why?
      • 2.2.1. OEMs
      • 2.2.2. MNOs
      • 2.2.3. Payment Networks
      • 2.2.4. Smart Card Vendors
      • 2.2.5. IC Vendors
    • 2.3. Which Markets Will Prove Success for Convergence?
      • 2.3.1. Payment Convergence, Proximity, Online and P2P
      • 2.3.2. Transportation and Ticketing
    • 2.4. NFC Ticketing Drivers
      • 2.4.1. NFC Ticketing Inhibitors
    • 2.5. NFC Ticketing Forecast Summary
      • 2.5.1. Retail and Loyalty
      • 2.5.2. Access Control
      • 2.5.3. Access Control Drivers
  • 3. OPPORTUNITIES FOR WHOM?
    • 3.1. Can IC Vendors Really Lose?
    • 3.2. Transit Authorities
    • 3.3. The Potential Impact of NFC and Convergence on the Smart Card Market
    • 3.4. Don't Discount Closed-loop Applications
    • 3.5. MNO Hesitation
    • 3.6. Other Potential Limiting Factors
    • 3.7. OEMs on Board
    • 3.8. Payment Networks

Charts

  1. NFC Handset, CE Devices, and Secure Element Shipment Overview, World Market, Forecast: 2011 to 2017
  2. Total NFC Payment Spend, World Market, Forecast: 2011 to 2017
  3. Active NFC Handsets Used for Ticketing Applications, World Market, Forecast: 2011 to 2017