Proximity Mobile Payment Transactions to Approach 9.9 Billion in 2016, Says NPD In-Stat

The mobile payments market is incredibly diverse.
There is no single model that’s been adopted by the entire market, but rather a variety of models depending on the type of mobile payment and the player involved. In the proximity payment space-those payments made at a retailer via NFC or barcode scanning-trials are transitioning to commercial launches, and support for these solutions continues to build. While infrastructure is weak, both on the retailer side and on the consumer device side, new NPD In-Stat research forecasts that proximity mobile payment transactions will approach 9.9 billion in 2016, up from 1.1 billion in 2012, nearly a ten-fold increase.

According to Amy Cravens, Senior Analyst, is the contactless or proximity mobile payments market in its infancy and thus a variety of technologies are being explored and promoted. 2011, however, was a significant year in clarifying the future direction of market development. Based on the vast support for NFC and the endorsements made by significant players in 2011, it is apparent that this will be the dominant contactless payment solution going forward.
At the same time there continues to be a great deal of support behind barcode-based payments as well (mFoundry and Starbucks, PayPal, and Home Depot), indicating that these types of solutions will continue to be supported in the coming years.

Recent research findings include:

  • Asia Pacific will dominate proximity mobile payments throughout the forecast period representing 41% of the transactions in 2016.
  • Over half of survey respondents are familiar with mobile payments, up from just one-third in 2011.
  • Remote mobile payments will account for nearly $226 billion in mobile payments in 2012.