Forrester has predicted that whilst nearly 100m Near Field Communication (NFC) devices will ship in 2012, mass adoption will depend on a user experience beyond just payments.
According to two new reports from the analyst firm, mainstream use of the technology remains three to five years away in most countries, despite major companies such as O2, Google, Starbucks and PayPal already entering the space.
NFC usage will remain niche in 2012 and even 2013 but moving forward will be embedded in most smartphones — and in a greater range of connected devices — enabling many more use cases than just contactless payments, said the firm.
Additionally, mass market adoption is expected to require not only a lot of market education but, more importantly, the construction of a value proposition for consumers and merchants that goes well beyond convenience and speed to adding value to the entire commerce process.
According to Forester, users will begin to see service experiences beyond just contactless payment such as convenient transport experiences, next-generation shopping experiences, authentication and identity management solutions, and immersive marketing experiences
Forrester principal analyst Thomas Husson said: “The key long-term driver for NFC technology is that it can enable many new product and service experiences beyond just mobile contactless payments. NFC will also expand into other consumer and workforce connected devices, facilitating content and app sharing and cross-device experiences.”