Tuesday, November 01, 2011

Consumer demand driving NFC-enabled Mobile Wallet Solutions

Parks Associates Report Shows Mobile Shopping Will Create Multibillion-Dollar Industry for Credit-Card Companies, eCommerce Retailers, and Mobile Operators

NFC (near field communication) will become a standard feature on smartphones over the next few years as consumers respond to the convenience of the "mobile wallet" for making payments, according to Mobile Payment: Technologies and Business Models, a new report from Parks Associates.

The international research firm reports almost 50% of U.S. smartphone owners find an NFC-enabled mobile wallet application appealing. "The convenience of e-Wallet solutions, specifically for eliminating the need to carry multiple or any credit cards, is driving the majority of consumer interest," said Harry Wang, director, mobile research, Parks Associates.

Already 16% of smartphone owners use PayPal or other types of e-Wallet solutions as their preferred method for mobile payments, and one in four Millennials regularly use their mobile phones to research products or services prior to a purchase.

These factors will create a commerce opportunity on smartphones of more than $800 billion U.S. in 2015 and boost business for merchants, retailers, financial institutions, and mobile carriers. Industry heavyweights Amazon.com and eBay reported robust mobile eCommerce growth in 2011. Siemens, which will keynote CONNECTIONS™ Europe, November 8-9 in Amsterdam, recently announced its new walletXpress mobile payment platform.

“We are witnessing a groundswell of activities in the mobile payment industry,” Wang said. “Visa is engaged with payment solution providers, and Google recently launched its Wallet app, which integrates with its Offers service. Isis, a joint venture between AT&T, T-Mobile, and Verizon, expanded its business model to include more payment partners. Each deal signals serious interest from all parties to build scale and technology advantage over competing solutions.”

Mobile Payment Market

Jennifer Kent, Parks Associates' research analyst, notes the mobile payment space will become less fragmented over time. “While the segments of this market are diverse now, all major players are planning for a converged payments future where one digital wallet can be used for in-person retail payments and online payments across all product categories. Consumers will gravitate towards a single, trusted provider for most of their mobile commerce needs, so the development of a reliable wallet with diverse capabilities will be crucial.”

Mobile Payment: Technologies and Business Models breaks down the mobile payment industry into distinctive market segments and analyzes unique market drivers, growth prospects, key business models, and likely market leaders. Based on total transaction value, NFC-enabled mobile wallet solutions for retail purchases and digital wallet applications for mobile eCommerce will be dominant payment choices by consumers. Other payment solutions like the barcode application developed by mFoundry for Starbucks or several carrier billing options will supplement consumers’ needs for specific types of goods and services.

For more information about Mobile Payment: Technologies and Business Models, visit http://www.parksassociates.com or contact 972-490-1113, sales@parksassociates.com.

About Parks Associates: Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com

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