Apple's decision not to include support for Near Field Communications technology in the iPhone 5 will hinder NFC adoption and the value of NFC-related transactions, according to a new report from Juniper Research. Juniper now claims that global NFC retail transaction values will reach $110 billion (€84 billion) in 2017, significantly below the $180 billion Juniper had forecasted in July.
The report claims that the iPhone 5's lack of NFC will impact most dramatically impact Western Europe and North America, where transaction values would exhibit a two-year lag on previous forecasts as retailers delay point-of-sale terminal investments.
"While many vendors have introduced NFC-enabled smartphones, Apple's decision is a significant blow for the technology, particularly given its previous successes in educating the wider public about new mobile services," report author Windsor Holden said in a statement. "Without their support, it will be even more difficult to persuade consumers--and retailers--to embrace what amounts to a wholly new means of payment."
Juniper believes that Apple's reluctance to include an NFC chipset in the iPhone 5 has shaken retailer and brand confidence in the technology, leading to reduced POS rollouts and a smaller number of NFC campaigns. This will lead to less NFC visibility with consumers and fewer opportunities to make payments, threatening a cycle of "NFC indifference" in the short term, Juniper said.
- see this Juniper Research release
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