ABI Research says contactless mobile payments will be insignificant this year

ABI Research study revealed that this year the development of contactless mobile payments has failed to live up to expectations and the technology will account for just a fraction of the value of commerce transacted over cell phones. 

It was said that the value of mobile commerce transacted via non-NFC methods - SMS, Internet and applications - will reach the amount of $1.6 billion in 2009. Meantime contactless mobile commerce will be "minimal".

In spite of the advantages of contactless payments, the development of the NFC market has not faced early expectations that appeared to be a failure, of unclear business models, not of technology, according to practice director of ABI Research Dan Shey’s words. Non-NFC platforms claim to fill this gap, with mobile Internet shopping with sites like Amazon and eBay attracting increasing numbers of subscribers.

ABI’s study shows that demand for mobile commerce services is growing around the world. Consumers in most industrialized countries are feeling comfortable using their mobile phones for more than just traditional communications as the services open up financial services to millions of unbanked people.