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Mobile payment boosts NFC IC shipment

Posted: 28 Oct 2011 ?? ?Print Version ?Bookmark and Share

Keywords:NFC? mobile payment? wireless technology?

As a result of the rise in mobile payments expected to top 375 million in 2015, the need for NFC chips will likewise increase to more than 1.2 billion on the same year. This is according to the new research by In-Stat titled "NFC Chips and Tags: Worldwide Market Analysis and Forecast."

NFC is a set of technologies that supports communications between two devices in close proximity to each other. An NFC link is very quick to set up, enabling small amounts of data to be exchanged over short distances. This capability is unique compared to other wireless technologies. This makes NFC an ideal solution where quick exchange of small amounts of data is vital to quality user experiences such as mobile payments.

"As the costs of NFC chips decline, and NFC radios are combined with other chip functions, the cost to integrate NFC into handsets will be outweighed by the benefits," noted Allen Nogee, research director at In-Stat. "The growth of combo chips will also allow NFC radios to piggyback on technology that already has significant penetration in the market. For example, Bluetooth radios, which currently have 100 percent market penetration, can be integrated with NFC radios, making the choice to include NFC easy for OEMs."

The research revealed that the focus of the NFC market is shifting from payment applications that can be enabled by NFC, to marketing applications. With this focus shift, we expect retailers to begin pilot programs in the latter part of 2011 and into 2012 that incorporate smart posters into their signage and outdoor advertising strategies. In addition, NFC is expected to reach 30 percent global penetration by 2015. In the same period, global annual shipments of NFC chips are seen to grow at a CAGR of 129 percent.

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