In-Store NFC Mobile Payments Will Gain Momentum in Canada by the End of 2015, Says Deloitte

by Istvan Fekete on January 14, 2015

This year, NFC-based mobile payments will finally take off, according to Deloitte’s 2015 Canadian Technology, Media & Telecommunications (TMT) Predictions. In 2015, there will be about 600 million NFC-equipped smartphones worldwide, and of those 5% will be used to make an NFC payment in-store at least once a month, marking a 1,000% increase compared to 2014. Canadians will contribute to this growth at the end of the year, says the market research company.

TMT’s predictions for 2015 are based on global research, including in-depth interviews with clients, industry analysts, global industry leaders, and more than 8,000 Deloitte member-firm TMT practitioners.

“Canadian smartphones are already being used to check balances, transfer funds and transact online, which indicates that consumers are comfortable with using their phones to handle money. But almost no one used their phones for contactless in-store payments at the register,” said Duncan Stewart, Director of TMT Research at Deloitte in Canada. “2015 will be the first year in which all of the requirements for mainstream mobile payments – satisfying financial institutions, merchants, consumers and device vendors – have been sufficiently addressed.”

The smartphone market has matured, the market research company says, although this won’t stop device sales. Deloitte predicts 1.4 billion smartphone sales for 2015, but more than a billion of those will be upgrades.

In Canada, this means about 5 million smartphone upgrades, says Robert Nardi, Partner and National TMT Leader of Deloitte in Canada. “PC growth has been on a decline as consumers and enterprises started to buy new ones at longer intervals, but it would be premature to expect the same to occur for smartphones. Pride, pixel count, durability and storage needs will continue to drive growth for smartphone refreshes.”

Looking forward, the Deloitte list of top 10 predictions for this year also includes a forecast for spending habits. The “generation that won’t spend” – millennials who are 18–34 years old – in Canada will spend an average of $750 for content, both traditional and digital. That’s nearly $7 billion in sales for the Canadian media industry, assuming 9 million millennials.

To read the full list of top 10 predictions for 2015, follow this link.

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Written by: Istvan Fekete. Follow by: RSS, Twitter, Facebook, or YouTube.

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