The number of consumers and businesses who use their smartphones, tablets, laptops and other mobile devices as a mobile credit card terminal is expected to increase significantly over the next five years, according to a new report released by IDC Financial Insights.
The report predicts that worldwide mobile device purchasing volume will exceed $1 trillion by 2017. Most of this will be in the form of mobile commerce, which includes digital media consumed on the device as well as ecommerce through a mobile web browser.
Although near field communication (NFC) payments are still limited, the firm forecasts rapid mobile purchasing growth driven by handset and point-of-sale terminal upgrades.
“The growing prevalence of smartphones is enabling a variety of mobile payment methods, which combined are becoming a significant share of global commerce,” said IDC Financial Insights’ Aaron McPherson. “We expect growth rates to continue to accelerate as consumers and retailers become more comfortable with the technology.”
Additionally, the report urges financial institutions to incorporate their cards into NFC and mobile wallets to capitalize on the growth of mobile commerce and NFC proximity payments.