NFC Payment Transaction Values in China Could Surpass $8 Billion by 2014

04 Aug 2011

China could see more than $8 billion in mobile payments by 2014, according to ABI Research forecasts.

The Near Field Communication (NFC) market is moving forward on an uneven front. Google is aggressively supporting the technology through the latest generation of Android handsets from its partners such as Samsung. Nokia is introducing NFC-capable handsets, but the C7 and N9 only support non-secure applications and not contactless payment.

In China, however, device manufacturers and operators are keen to move ahead with contactless mobile payment. It will be interesting to see how ZTE, as a local OEM, implements its announced range of NFC smartphones and handsets.

Jake Saunders, VP for forecasting at ABI Research notes, “China is a big mobile payments market to play for. There were more than 868 million cellular subscribers as of the end of March 2011.”

China’s mobile payments industry is burgeoning, attracting many participants wishing to grab first-mover advantage and vie for a bigger slice of the pie. ABI Research estimates that NFC payment transaction values in China could surpass $8 billion by 2014. Financial institutions (China UnionPay), third party mobile payment service providers, and Mobile Network Operators (China Mobile, China Unicom and China Telecom) are all jostling for position. According to Saunders, “ABI Research believes the mobile payment market in China will largely adopt an MNO-led business model.”

The Chinese government has expressed a preference for an NFC device solution utilizing the 13.56 MHz frequency band. To break the classic chicken-and-egg cycle, there are bridging solutions intended to stimulate the contactless payment market. The principal one is contactless (NFC) SIM cards. WatchData’s SIMpass solution has attracted strong interest from all three operators.

As a result, more NFC handset add–ons are shipped than NFC-enabled mobile handsets: 2.5 million SIMpass add-ons and 50,000 SD add-ons, versus 45,000 handsets in 2010.

ABI Research’s “Mobile Payments in China” study, produced by the firm's Singapore division, provides an overview of the contactless mobile payments ecosystem in China. It also explores the near-term regulatory directives and the payment technology competition among the key players, and points out the potential winners and losers.

It is a component of two ABI Research Services: Asia Intelligence, and Mobile Money.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 40+ research and advisory services. Est. 1990. For more information visit, or call +1.516.624.2500.

About ABI Research

ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.

ABI Research提供开创性的研究和战略指导,帮助客户了解日新月异的技术。 自1990年以来,我们已与全球数百个领先的技术品牌,尖端公司,具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。

For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit

Contact ABI Research

Media Contacts

Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670

Related Service