In 2011 mobile payments transaction amounted to $240 billion and it is expected to grow to $670 billion worldwide by 2015. All the speculations were focused on Near Field Communications (NFC) payment as the future of the mobile payment industry. With the introduction of Google wallet, Isis wallet, and Serve by American Express the market grow more and more. Analyst’s expectations about the NFC were big. The NFC market is expected to be worth $50 billion by 2014 and the overall mobile payments market is also expected to rise quickly thanks to mobile ticketing, money transfers, and purchases of physical goods.
PayPal recently introduced a new payment system which can put the NFC payments out of business! Cloud based payment is a new service which can let the mobile users and retails make transactions more easily. With cloud based payments, retails will not need to purchase any kind of devices, and the user’s handset does not need a special chipset to carry out the transaction. Mind Commerce expect that mobile NFC payment will get less attention in the next 3 years, and cloud based payments will take over.
There are a lot of factors to support this analysis. For instance, there still security problems with the NFC transactions, and Google still working on this. NFC payments need a lot of software and hardware installations, but Cloud-based payment is hassle free method.
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