Near Field Communications (NFC) has been able to grow rapidly because companies in the United States are upgrading their technology to comply with EMVCo standards, proving more support from merchants for NFC point-of-sale (POS) terminals Research and Markets released a report on September 15 titled “Global NFC Transaction Market 2016-2020” which deduced that the NFC transaction market will likely grow from 2016 to 2020 at a Compound Annual Growth Rate (CAGR) of 55.23 percent.
NFC payment implementation is gaining more flexibility thanks to host card emulation (HCE). Host Card Emulation is the on-device technology that grants a cellular device access to card emulation on a Near Field Communication-enabled device without needing to utilize access to a secure element. Apple, Google, and Samsung are now adopting NFC as their preferred mobile proximity payment interface. They are integrating NFC payment features into their respective mobile devices.
The report concludes that increased use of mobile devices for payments will become a driving force for market growth. Mobile payments have gained traction with more and more adoption of mobile devices, mobile wallets, and incentives. The report also found that NFC POS terminals are increasingly being deployed due to their facilitation of hassle-free mobile payments.
Within the past few years, getting consumers and merchants to adopt mobile payment technologies has proven itself to be a difficult task. Throughout 2015 and into 2016, adoption has been relatively slow. Recently however, there has been a greater desire from consumers in particular to use this payment platform. With that desire, more is being done to encourage those people to adopt quickly. Many consumers, particularly Millennials and Gen Xers, are attracted to mobile payment incentives. The ability to earn rewards and discounts, access mobile receipts, and receive alerts has all proven to be desirable features and incentives that mobile wallet providers are offering. This only increases the need for NFC technology.
A summary of the report can be found here:
The full report can be found here:
Sterling provides merchants with a complete range of electronic payment processing services, including credit, debit, PIN debit, fleet, gift card, and electronic benefits transfer (EBT).
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