NFC is back, some Analysts were wrong

In the past few years, Near Field Communication (NFC) technology has been a subject of debate. It went through the bull cycle and this year it was felt by many that it is having a hard time. Various analysts, reports and payment experts had downgraded their outlook about NFC uptake as a payment enabling technology. In one of the most popular instances a research firm had also revised the estimates for Global NFC market (forecasts) lowering the figure to $110 Bn by 2017 from earlier estimates of $180 Bn. However, I am going to present a case below to the industry(s) and pose a few questions: Were the Analysts wrong? Is NFC back as a mode of payment?

A lot of cynicism about NFC revolves around three key notions - limited mobile devices with NFC, non availability of NFC Infrastructure (terminals) and lots of pilots but no mass deployments. Add to that some issues with big products based on NFC such as ISIS and Google Wallet. Maybe add Apple staying away from NFC (for the time being).

More and More Devices are being shipped with NFC

Lets look at some numbers. According to the Strategy Analytics, the NFC capable smart phones are expected to be nearly 400 Mn by the end of 2014. There is large market opportunity to create contactless payment applications, integrate NFC into connected home and car products, mobile wallet services and develop other innovative services that will trigger consumer demand for NFC.

Tap and go payments enabled through mobile devices with Near Field Communication (NFC) technology are gaining widespread momentum with nearly 50% of all smartphones launched by 2015, to be NFC enabled. This would mean that 1 Bn NFC based handsets will be sold worldwide by 2016 which will support $50 Bn worth of transactions; approximately 15 Bn NFC tickets will be delivered to mobile devices worldwide by 2014 and around 300 Mn NFC enabled smartphones, tablets and eReaders will be sold in 2013, according to a report by AT Kearney.

Even if your phone doesn't have a NFC chip, you can use stickers. Australia’s Bankmecu and card issuer Cuscal have completed an NFC payment sticker trial, enabling consumers to make contactless payments at Visa payWave terminals using a smart sticker stuck to their phone. Bankmecu now plans to further test the service before launching it to its wider cardholder base in the next few months.

Carriers are putting more NFC enabled Sim Cards

In November 2013, Vivo (Brazilian Mobile Operator) partnered with Gemalto to provide Trusted Services Manager (TSM) platform for its NFC based m-payments implemen ...


To read this article, create a free account

Already a member? Log in

Annual Subscription

12-month access to 10,000+ insights, research reports, a database of 13,000+ FinTech companies, and a live global community.




instant access to reports and global community along with donation to COVID-19 fund.

Quarterly Subscription

12-month access to 10,000+ insights, research reports, a database of 13,000+ FinTech companies, and a live global community.




instant access to reports and global community

--------------- Reasons to buy ---------------

Understand the “Why” Behind the “What”

MEDICI offers data-driven, original, unique, and forward-thinking content to understand the “why” behind the “what”

10,000+ insights, 100+ research reports, and 1,000+ videos based on data, collected and processed by top-in-class researchers with over seven years of experience in the financial service industry.

Actionable Insights

We do not stop at the data; we analyze it and extrapolate actionable insights that shape and forecast market trends. All of our pieces are neutral, authentic, and unique – this means that you can’t read them anywhere else!

Data Visualization

We do also care about design. It’s why our infographics are the most-used ones in company reports and the most shared ones on social media.

Growing Proprietary Database of 13,000+ FinTech Companies

We have one of the largest databases with more than 13,000 company profiles listed across 60+ verticals! The database contains primary data collected in two ways:

Through our Global Listening Engine – a proprietary algorithm able to extrapolate and collect data across numerous sources

Directly from FinTechs – thanks to the onboarding flow through which companies can list themselves on the most used database for venture capital in the industry

Join the Largest Global FinTech Community

You will be added to our private WhatsApp Channel with more than 200 FinTech leaders across the globe, where we engage in discussions around various financial services topics daily. After a few clicks, you’ll get to know the whole community, including the MEDICI team – you can ask questions, suggest topics, and get behind-the-scenes insights


What is MEDICI Inner Circle™?

MEDICI Inner Circle™ is the membership you need to freely access all MEDICI content, which includes insights, research reports, videos, startup knowledgebase, and the members-only community for live engagement.

What topics do you cover?

We cover more than 60+ sub-segments in FinTech – but we do not stop there; we also cover topics beyond FinTech, such as InsurTech, RegTech, PropTech, WealthTech, BankTech, AgriTech, and the enabling technologies enabling innovation such as AI, Blockchain, etc.

What do I get if I buy the membership? Is there a difference between being a free subscriber and being a member?

By becoming a member, you will unlock all the content on our website. A free subscriber gets access to only 5% of what we publish on the web-site. Paid members also get preferred access to our live events, and exclusive access to the members-only community for live digital engagement.

Do you have a discounted plan for students?

Yes. Please write to us at

Do you have an enterprise plan for corporates or groups?

Yes. Please write to us at

Do you offer refunds?

We offer a 7-day free trial during which you can access all of our data, insights, and analyses. You can cancel the subscription any time before the end of the free trial period. However, we do not offer refunds.

Unlock this article by signing up for MEDICI Inner Circle

--------------- OR ---------------