In a new report, Aite Group details how the installation of NFC-capable payment terminals, prevalence of NFC-capable smartphones, and emergence of tokenization and biometrics have created a great deal of consumer and merchant interest in mobile proximity payments.
The space’s rate of change is breathtaking, and it is rife with competitive initiatives and disruptive market entrants. Can mobile proximity payments enablers overcome the inhibitors and create new payments empires?
Based on interviews with over 50 opinion leaders, chief executive officers, and business managers, this report describes technologies, introduces major players, identifies issues and important lessons learned, and forecasts the growth of the mobile proximity payment ecosystem for the next five years.
“Customer adoption of mobile proximity will depend upon the quality of the user experience, which needs to be as good as or better than the card payment experience,” says Thad Peterson, Aite Group Retail Banking & Payments senior analyst and author of this report. “While mobile proximity payments will grow quickly as NFC distribution becomes universal and customers begin to use the platforms, mobile commerce will drive more transaction volume than mobile proximity payments in the next five years.”