NFC Payment to Grow

mobile-phone-nfc-rfid-blogThe number of users making payments with NFC-enabled mobile phones is expected to grow significantly as mobile technologies are becoming more advanced and the infrastructure to support NFC payments falls into place.

NFC is increasingly being adopted by payment networks, banks, merchants, mobile device manufacturers and mobile network operators as the global standard for mobile payments. This year, analysts anticipate that smartphone shipments will grow by over 38.6 percent year-on-year, which indicates that more mobile payments will be used in the future. There is an undeniable demand for contactless transactions using the mobile phone. Juniper Research predicts that NFC mobile payments are set to exceed $180 billion worldwide in 2017.

“NFC technology is transforming mobile phones into payment devices that will change the way people live, work and play,” said Niki Manby, head of Emerging Products for Visa. “NFC payments have enormous potential and we are committed to providing the convenience of this technology in a secure manner to our customers.”

To make NFC-based payments an everyday reality, three components are necessary: compatible handsets and hardware, a viable support infrastructure, and a well-established contactless payment acceptance infrastructure. Visa is working closely with industry partners to develop a robust ecosystem which will enable consumers to make payments faster and more conveniently.

The development of NFC-enabled hardware, payment applications and convenient user interface applications, will be at the forefront of contactless mobile payments.

Visa’s PayWave acceptance technology uses industry standards such as ISO 14443, EMV and Global Platform that are compatible with existing contactless payments terminals already installed at retail outlets worldwide.

Earlier this year, Visa announced a new service, Visa Mobile Provisioning Solutions, which provides financial institutions and mobile network operators a one-stop solution to securely download payment account information to NFC-enabled smartphones. This new service was developed in collaboration with Oberthur.