NFC - Rafe Blandford

Mobile Wallets in Half of Smartphones by Next Year

March 10, 2015         By: Steven Anderson

Mobile wallets are clearly going to be a major part of the technology landscape for some time to come, and likely with good reason.

This is a system that’s likely to make shopping not only easier but also safer on some fronts, and can give users a glimpse of an exciting new mobile-centric future.

NXP Semiconductors, which makes near-field communications (NFC) chips, believes that mobile wallets will ultimately be a much bigger part of the future than most would see coming.

NXP’s CEO, Richard Clemmer, offered up the bombshell notice: by the end of this year alone, half of all smartphones will have NFC-based mobile wallet support. While the United States and Europe would certainly have a hand in all that development, it was clear where the focus of development would be: China, and the rest of the Asian market.

However, while the Asian market was set for big gains, United States adoption was set to make some major gains in terms of both percentage and overall volume.

The volume is expected to increase 1,000 percent in the United States just by 2018, and will reach a total volume of over $100 billion. Indeed, Clemmer noted how some people have adjusted shopping patterns in response to which stores will accept which mobile payment platform. That may sound unnecessary, but as Clemmer notes, it’s hard to tell how powerful these systems really are until you actually put these to use.

It makes sense that the Asian market would be the big gainer here; there are not only a whole lot more people in these locations than in other markets, but there’s also a greater reliance on mobile in these places. So seeing a greater numbers of people with more reliance on mobile adds up nicely to the growth of mobile payments.

Sure, major markets like Europe and North America won’t be any slouches, but the numbers just come out in support of the bigger gains.

Only the arrival of 2016 will give us a clearer idea on just how big a year 2015 was for mobile payments, but even if Clemmer’s projections aren’t quite so accurate as expected, they do portend some big gains in the near term.

There are going to be a lot of people turning to mobile wallet systems the world over, and that alone has the potential to shake up many different operations. Businesses prepared for this particular trend will likely come out ahead, while those who don’t, risk falling behind competitors.