Near field communications (NFC) mobile payments will exceed US$180 billion worldwide in 2017, according to a May 2012 report by Juniper Research.
Visa recognises this increase in popularity of NFC mobile payments and is committed to enable more consumers to make payments from their phones to a contactless terminal securely and efficiently.
Mobile technologies are set to become more advanced and this will drive significant growth in the number of payments made with a near field communications-enabled mobile phone.
Payment networks, banks, merchants, mobile device manufacturers and mobile network operators are increasingly adopting NFC technology and analysts anticipate smartphone shipments to grow by over 38.6 percent year-on-year in 2012.
"NFC technology is transforming mobile phones into payment devices that will change the way people live, work and play," said Niki Manby, head of emerging products, Asia Pacific, Central Europe, Middle East and Africa, Visa. "NFC payments have enormous potential and we are committed to providing the convenience of this technology in a secure manner to our customers."
Establishing global standards
Visa has established global standards for mobile payments and ensured that these standards are aligned with existing technology and security standards for chip payment cards.
The company notes that many NFC-enabled smartphones from companies such as Samsung Electronics and LG Electronics are certified for use with payWave, Visa's mobile application for payments at the point-of-sale.
This certification, says Visa, will help mobile device manufacturers, mobile operators and retailers to partner with financial institutions to offer Visa mobile payment functionality to consumers globally.
Visa's payWave acceptance technology uses industry standards that are compatible with existing contactless (NFC) payments terminals already installed at global retail outlets.
"Visa is commercially ready to support mobile operators and financial institutions with the roll-out of NFC-based payment," said Manby. "We have moved the technology from pilots into actual commercial readiness and are optimistic that consumers will make payments on-the-go with just a wave of their mobile phones this year."