While there are some people who are simply not bullish on what Apple (News - Alert) Pay is going to offer, Juniper research is not among them. The industry analysis firm recently released a report in which it claims the new over-the-air payment service teamed up with Host Card Emulation (HCE) technology will boost the Near Field Communications (NFC) user market to more than 500 million by the end of 2019.
While big business experts like Pizza Hut’s CEO are concerned that there simply won’t be enough people who want a service like Apple Pay, Juniper directly credits Apple Pay in its report. The company believes Apple Pay could further stimulate the NFC market and will eventually help it address some key challenges when it comes to the contactless payment awareness and acceptance.
The research firm also pointed out that HCE technology is making steady growth in this particular sector. There are a number of firms that have already launched commercial endeavors in this area all across the world. BBVA and Bakinter in Spain, as well as CUA in Australia are already heavily banking on the appeal of HCE technology moving forward. Russia and New Zealand are reported hot on their heels.
One reason NFC tech is going to be at such a high adoption rate by 2019, according to Juniper is because customers are being pushed there. The report indicates that more than three quarters of smartphones worldwide are going to be equipped with NFC capabilities by the end of this decade. This is in stark contrast to the number of retailers that offer NFC support. Apple Pay has helped move companies like Office Depot and Walgreens further into the NFC fold, but there are some firms pushing back. Juniper points out that some retailers are still unsold as to what the tangible benefits of NFC tech are in the broader retail scheme.
Edited by Maurice Nagle
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