NFC
(near field communication) will become a standard feature on smartphones over
the next few years as consumers respond to the convenience of the mobile wallet
for making payments, according to Parks Associates.

Almost
50 percent of U.S. smartphone owners find an NFC-enabled mobile wallet
application appealing.

“The
convenience of e-Wallet solutions, specifically for eliminating the need to
carry multiple or any credit cards, is driving the majority of consumer
interest,” said Harry Wang, director, mobile research, Parks Associates.

Already
16 percent of smartphone owners use PayPal or other types of e-Wallet solutions
as their preferred method for mobile payments, and one in four Millennials
regularly use their mobile phones to research products or services prior to a
purchase.

These
factors will create a commerce opportunity on smartphones of more than $800
billion U.S. in 2015 and boost business for merchants, retailers, financial
institutions, and mobile carriers. Industry heavyweights Amazon.com and eBay
reported robust mobile eCommerce growth in 2011. Siemens recently announced its
new walletXpress mobile payment platform.

Google
recently launched its Wallet app, and Isis, a joint venture between AT&T,
T-Mobile, and Verizon, expanded its business model to include more payment
partners. Each deal signals serious interest to build scale and technology
advantage over competing solutions.

The
mobile payment space will become less fragmented over time. All major players
are planning for a converged payments future where one digital wallet can be
used across all product categories. Consumers will gravitate toward a single,
trusted provider, so development of a reliable wallet with diverse capabilities
is crucial.

By
Telecomlead.com Team
editor@telecomlead.com