Published on November 9, 2023, 5:01 am

Smartphone penetration in Asia Pacific is set to surpass 99% by 2024, according to a recent study conducted by Juniper Research. This surge in smartphone usage will enable an additional 67 million individuals to adopt mobile payments, as they will have the necessary hardware to make NFC payments using their handsets.

This finding is one of the key highlights from the study, which also projects that the total number of unique contactless mobile payment users worldwide will reach 1 billion by 2024, representing a growth rate of 60% from the current figure of 782 million in 2022.

Juniper Research emphasizes that driving this growth will require increased investment in contactless acceptance infrastructure, particularly in emerging regions. The report suggests that over 200 million new contactless payment users will be added to the market by 2024 through such investments.

To tap into these high-growth markets, NFC mobile payment vendors must encourage consumers to transition from mobile money to NFC payments. This can be achieved by educating consumers about the benefits of NFC payments and taking steps to improve NFC acceptance infrastructure.

Jordan Rookes, a research analyst at Juniper Research, highlighted an exciting development known as soft POS. This innovative technology enables smartphones to accept NFC payments without requiring additional hardware. Rookes believes that soft POS will contribute significantly to increasing contactless acceptance infrastructure due to its lower cost compared to traditional contactless POS systems.

The study also reveals that the demand for convenient and frictionless payment methods is accelerating the growth of contactless payments. With contactless payments, consumers only need a smartphone or an NFC-enabled device, eliminating the need to carry multiple payment cards.

To further drive adoption, NFC mobile payment vendors should offer additional payment options like BNPL (Buy Now, Pay Later). By allowing consumers to pay for purchases in installments, BNPL makes high-value purchases more affordable and increases convenience for customers.

In conclusion, Asia Pacific is set to experience a surge in contactless mobile payments, driven by the widespread adoption of smartphones. The study emphasizes the importance of investing in contactless acceptance infrastructure and educating consumers about the benefits of NFC payments. By capitalizing on these high-growth markets and offering convenient payment options, NFC mobile payment vendors can drive greater adoption and propel the expansion of contactless payment solutions worldwide.

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