NFC payments to reach 100 billion in 2016

first_imgChances are you have never made a point-of-sale purchase with your smartphone. Well, that is, assuming you’re in the US. Other regions like Europe and Japan have made Near Field Communication (NFC) payment technology a huge market right now, but the rollout in America has been much slower. According to a report from ABI Research, though, that is going to change in a big way over the next few years.The research group predicts that in the year 2016, more than $100 billion in NFC payments will be processed. The momentum won’t disappear after that, with ABI saying that 2017 could bring in nearly $200 billion. In 2012, it expects there to be a modest $4 billion in NFC transactions.Until now, to use your smartphone to pay for a purchase at the register you’ve needed to have a Sprint phone with an NFC chip, and a Citi credit card. There are signs that this industry is about to widely expand, though, such as the impending launch of Isis, an NFC payment platform supported by every credit card company as well as Verizon, T-Mobile, and AT&T.Taking a step back, it’s always worthwhile to remember why swiping your smartphone is different than swiping your credit card. There are so many really cool possibilities. For example, instead of handing over your store loyalty card, presenting coupons for the cashier to scan, using a gift card, and then paying for the rest on your credit card, that will all be replaced with a tap of your phone. Or at the grocery store, you could use your phone to scan every product as you add them to your cart, and then just tap your phone at the checkout area to be on your way.Adoption of NFC and smartphones as a form of payment is just a matter of educating consumers about just how revolutionary this technology is, and once that is done the industry should skyrocket.via Business Wirelast_img

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