The value of the global mobile payment market is set to increase by over 25 per cent in the next year, analyst forecasts said.
Technology-focused analyst firm TrendForce estimated the value of the mobile payments industry will reach $780 billion in 2017, a 25.8 per cent increase on the value in 2016. The boost is attributed to continued intense competition between major smartphone and OS vendors to develop their ecosystems, and the increased availability of NFC chips and related security infrastructure.
The Taiwan-based research firm cited the impact of Chinese smartphone brands adding NFC chips to a growing number of handsets as one factor for the rise. It predicted over 60 per cent of smartphones shipped worldwide this year will feature NFC silicon.
TrendForce senior research manager Kelly Hsieh said: “Since Android has over 50 per cent of the mobile OS market share worldwide, Google has an opportunity to build up an extensive mobile payment ecosystem. Google has recently accelerated the international expansion of its digital wallet platform Android Pay and made a big step forward this December by announcing [a] partnership with major Japanese e-commerce and internet company Rakuten.”
Hsieh believes the development of mobile payment multi-factor authentication techniques, which combine elements including fingerprint, iris and vein recognition technology, in addition to existing security protocols, will also help to drive adoption.
US-focused research company Research and Markets also released its five year forecast for the mobile wallet market at the turn of the year, estimating a compound annual growth rate of 35.5 per cent between 2017 and 2021.