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December 6, 2012

Global NFC retail transaction to reach $110bn in 2017: report

Apple's move will mainly effect North American and Western European markets, while South Korea & Japan remain unaffected

By CBR Staff Writer

Apple’s decision to exclude the NFC chipset from its latest iPhone 5 smartphone will marginally affect the projected mobile NFC transaction to $110bn by 2017, which was earlier projected to reach $180bn, according to a new report from Juniper Research.

The report revealed that Apple’s move has reduced retailer and brand confidence in the technology, which will lead to plummeting point of sale (POS) rollouts and fewer NFC campaigns.

The move could also lower visibility of NFC among users and reduce payment opportunities, fearing a cycle of ‘NFC indifference’ within short span.

Juniper Research research director Dr Windsor Holden said whilst many vendors have introduced NFC-enabled smartphones, Apple’s decision is a significant blow for the technology, particularly given its previous successes in educating the wider public about new mobile services.

"Without their support, it will be even more difficult to persuade consumers – and retailers – to embrace what amounts to a wholly new means of payment," Holden said.

The iPhone maker’s move will have more impact on North American and Western European markets, where transaction values are anticipated to show signs of a ‘two year lag’ on pearlier forecasts due to the delay of POS investments by retailers.

The report also revealed that South Korea & Japan will remain unaffected, while the decreased use of Google Wallet related to a delayed launch of the ISIS NFC project in the US could refveal negative signs on the market.

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