Number of contactless transactions through mobile handsets is expected to increase over 9.9 billion by 2018, according to a new report from Juniper Research.
According to the report, the contactless transactions using mobile handsets will grow from 3 billion in 2014.
Increase in the transaction is expected to be result of introduction of the Host Card Emulation (HCE) that transforms an app into a virtual smartcard for NFC even in the absence of SE (secure element) in the handset along with the launch of Apple’s iWallet.
The report also revealed that the endorsement by Visa and MasterCard to HCE would encourage banks, who were concerned about the security of transactions.
According to the analyst, the HCE-based SE can reduce time-to-market, allowing the banks to retain control of their customers without needing to partner with mobile network operators.
Juniper Research expects that although there is increase in the transactions, the network operators are anticipated to lose out.
The report author Windsor Holden said with the emergence of HCE, the operator role at the heart of the NFC value chain is no longer sacrosanct.
"Banks can now go it alone and as a result the scale of the operator opportunity is significantly diminished," Holden added.
