“Consumers will happily make NFC mobile payments if the opportunity arises.” (NFC Payments Report, 2012)

The NFC Payments Report 2012, gives some interesting perspective insight leading up to the predictions for mobile payments in 2012. After interviews and surveys with more than 3,000 consumers and 500+ industry experts and executives, conclusively 2012 should be the “tipping point” for NFC mobile payments. However, the anticipated growth can only become a reality with a fair amount of pull-together from all players in the equation because a few essential pieces are still missing.

According to the report; 2/3 of consumers interviewed from both the US and UK, would not hesitate to make an NFC payment, if the service was readily available. Getting additional consumers on board; according to the experts,  is constitutive of all parties (including retailers) relaying information strongly emphasizing the wider benefits of mobile payments.

Industry Experts
At this point the industry experts are already convinced. Executives believe that mobile payments will be a strong source of revenue and that mobile payments will be able to deliver more effective up and cross selling.

According to the report, the seemingly most difficult aspect of mobile payment adoption is the convincing of retailers. Building customer enthusiasm is more a standard marketing procedure whereas retailers want to see tangible benefits and results e.g. investment return.

Although retailer “partnerships are still not cemented,” they are absolutely necessary for wider success. This may well be dependent on four factors;

  • Cost of the required POS technology
  • Visible Investment return
  • The cost of participating in the “wallet”
  • Intermediary charges

In proximity shops where paying as quickly as possible with an NFC device would be most visibly convenient; newspaper stands, fast-food restaurants, grocery stores and coffee shops; independent retailers will likely be more hesitant to adopt a service that may lower profit margins. A detail that still needs to be given considerable thought is the intermediary fees in those situations.

Although early 2012, has already seen a lot of traction from leading retail brands in their uptake of mobile payment strategy as well as the implementation of NFC capable cash software; further adoption by large scale retailers and retail chains experts argue, is still an important factor that will continue to push the whole industry forward.
Read more about the NFC Payment Report 2012