LG is preparing to unveil a mid-range Windows Phone code-named “Miracle” at this year’s Mobile World Congress trade show, according to PocketNow. The Mango-powered handset will feature a 4-inch WVGA display, a 1GHz Snapdragon processor, 8GB of storage, a 5-megapixel rear camera capable of shooting 720p video and a VGA front-facing camera. Perhaps the most interesting detail is the smartphone’s purported NFC capabilities, although it is unclear how this feature will be implemented in a handset running Windows Phone 7.5 “Mango,” which doesn’t currently support NFC. The Miracle will reportedly be released sometime this spring.

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We’re still waiting for Microsoft to launch Windows Phone “Tango,” but supposed details have already emerged surrounding the next major Windows Phone release code-named “Apollo.” According to Pocketnow, which claims to have obtained a video of Windows Phone manager Joe Belfiore that was intended to be viewed only by Nokia employees, Apollo will launch as Windows Phone 8. Read on for more.

Reportedly, Microsoft’s theme for the launch is “scale and choice,” and Apollo will add support for four different screen resolutions, multi-core processors, removable microSD cards and near-field communications (NFC) for mobile payments. Belfiore is said to have discussed Windows Phone 8′s “wallet experience,” and how the operating system will use NFC chips built into the phone itself or into SIM cards. Windows Phone 8 owners may also be able to tap their phone to an NFC-equipped computer running Windows 8 to share media, a feature HP tried to bring to the masses with its TouchPad tablet and Pre 3 smartphone.

Pocketnow said it is possible that Microsoft will ditch the Zune client and will instead offer a new and improved syncing interface, as well as flushed out Xbox LIVE support. Other features include DataSmart data management, BitLocker encryption, a new integrated Skype client and more. Microsoft also apparently said it hopes its Windows Phone Marketplace will be home to more than 100,000 applications by the time it launches Windows Phone 8.

It remains unclear when Windows Phone 8 might become available on current Windows Phone smartphones or on new devices.

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Ed McLaughlin, MasterCard’s head of emerging payments, sat down with Austin Carr of Fast Company to discuss the future of credit cards. “We’re rapidly moving to a world beyond plastic,” said McLaughlin. “In many ways, plastic is just convenient packaging.” The future of on-the-go payments may lie in the hands of near-field communication but unfortunately, adoption and availability have been extremely slow and limited. While NFC technology has been featured in a number of Android devices, MasterCard seems to think it won’t go mainstream until an iPhone is equipped with the mobile payment solution. Read on for more.

“The timeline is always as rapid as it makes sense for consumers,” McLaughlin said. “That’s a combination of having a critical mass of the merchants, which is what you’re seeing right now, and getting devices into the hands of consumers. I don’t know of a handset manufacturer that isn’t in process of making sure their stuff is PayPass ready.” When asked specifically if Apple was one of these manufacturers, McLaughlin stuttered. “Um, there are…like I say, [I don't know of] any handset maker out there,” he said. “Now, when we have discussions with our partners, and they ask us not to disclose them, we don’t.”

Apple has repeatedly shown that it is one of the few consumer electronics companies right now with the ability to transform and create entire industries. Prior to iTunes and the iPod, virtually no one paid for digital music, and media tablets were a non-factor until the iPad. Does the mobile payment industry need Apple to become a mainstream phenomenon? “Well, anytime someone with a major base moves forward, it advances what you’re doing. So of course,” McLaughlin said. “I think as merchants provide these better interfaces for consumers–a better way of transacting–I think any consumer-focused technology provider would want to take advantage of it.”

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While technology enthusiasts look forward to a number of high-end smartphone announcements vendors are preparing for Mobile World Congress next month, 2012 will see entry-level smartphones become more popular than ever. Market research firm Deloitte estimates that the number of sub-$100 smartphones in use globally will surpass 500 million this year, and by the end of 2012 there will be 200 million NFC-equipped devices in the hands of consumers. The firm also sees apps continuing to play a huge role in the mobile market, with the number of available apps set to top 2 million later this year. ”The number of apps available reached one million in December 2011 and will double again by the end of 2012,” Deloitte TMT analyst Jolyon Barker said in a statement. ”However, the proportion that are paid for remains small. Only a fifth of downloaded apps sell more than 1,000 copies and only a tiny proportion of unpromoted apps will ever become successful.” The firm’s full press release follows below.

Deloitte analyses top trends for the telecoms industry for 2012

17 January 2012

• The number of £65 “smartphones” in use will reach 500 million.
• The number of apps available will surpass two million by year-end 2012, double the total as of December 2011.
• The volume of data sent between devices via short-range wireless connections, bypassing the Web, will double in 2012.

The Technology, Media and Telecommunications (TMT) practice at Deloitte today announces its predictions for the telecoms sector in 2012, forecasting that the over half a billion low-cost smartphones (costing less than $100, or £65) will be in use by the end of 2012.

Jolyon Barker, global lead for Deloitte’s Technology, Media and Telecommunications Industry, comments: “This year’s predictions cover a range of topics, including the future for apps, demand for data and the rise of devices with near-field communications technology.

“The number of apps available reached one million in December 2011 and will double again by the end of 2012. However, the proportion that are paid for remains small. Only a fifth of downloaded apps sell more than 1,000 copies and only a tiny proportion of unpromoted apps will ever become successful.”

Simon Kerton-Johnson, lead telecoms partner at Deloitte, adds: “The number of devices with embedded near-field communications technology is set to soar to 200 million by the end of 2012. NFC – the transfer of small amounts of data over a very short distance – has been dominated by the ‘wave and pay’ notion of embedding a credit card into a mobile phone but the application of the technology is likely to have a wider reach.”

The $100 (£65) “smartphone” reaches its first half billion

Smartphones are typically considered high-end devices; yet by year-end 2012, at least 500 million $100 (£65) “smartphones” will be in use. These devices will have the look and feel of smartphones, sporting touch screens or full qwerty keyboards. $100 smartphones will have weaker processors, less memory, slower connectivity options, lower resolution cameras – but purchasers of these devices will be happy to trade off lower specifications for lower price. The rise of the $100 (£65) smartphone is comparable to the growth of the netbook, which offered a low-cost and low-powered alternative to standard laptops. The biggest demand for $100 smartphones is likely to be in emerging markets where Internet access is low but the desire for communication and information services is growing. Yet, the $100 (£65) smartphone could also appeal to users in mature markets where it could become a perfect teenage ‘starter’ phone. This will put pressure on the supply chain to cut the price of components but also presents a challenge for app developers as low-cost smartphone owners are less likely to want to pay for downloads.

So many apps – so little to download

The demands on the developer are increasing as the variety of smartphones and tablets increases. To reach a global target market, a developer may have to make 360 different variants which has almost called time on the part-time app developer. With so much choice on offer, app-store providers should consider ways to improve and assure the quality of the products on offer. Stores should look to differentiate by considering subscription models focused on different genres, or selected by editors, that would create ‘app bundles’. As smartphones go truly mass market, there will be a growing demand for local language, local content apps.

Web Bypass: delivering connectivity without the internet

The strain on networks, both fixed and mobile, is set to force more people to turn to short-range wireless connections to transfer data. Such technology has been pervasive before in the form of infrared and Bluetooth connectivity and is set for a resurgence in the form of web bypass – cutting out the need to connect to the internet at all – as the need for the quick transfer of data between devices and users grows. Roughly one per cent of all wireless data exchanged in 2012 will be between devices rather than routed over the internet, double the level of 2011. With telecoms companies balancing the need to invest in network improvement with the demands of customers for data capacity, web bypass will emerge as a third network option alongside fixed broadband and mobile for transferring information.

NFC and mobile devices: payments and more!

Many people remain uncomfortable with the notion of using a phone to pay for items and consumer perception about the security and battery-draining aspects of NFC need to be overcome. Even if 2012 turns out to be no more than a “transitional year” for mobile payments, the NFC chips will not go to waste. There are thousands of applications of NFC – from gambling, to games to healthcare – that could build up a head of steam over the course of the year, even if the media continues to focus on the ‘digital wallet.’

This month, DeviceFidelity and Spring Card Systems announced moneto, a new independent NFC payment solution. The service delivers NFC capabilities to any Android device with a microSD card. The card contains an NFC radio and antenna that are encrypted together to deliver MasterCard PayPass technology to any Android smartphone. Additionally, moneto has created a unique iPhone case to deliver the service to iOS users as well. The moneto case is currently available for $80, which includes $10.00 of pre-loaded funds. The Android microSD card is expected to be available within two to three weeks, and will sell for $30. All you have to do to use it, is insert the card, attach a small NFC sticker to the inside of your battery case — it helps with the NFC signal — and you’re on your way to credit card-less mobile payments. Read on for the full press release.

DeviceFidelity and SpringCard Launch moneto, the World’s First Multi-Platform Mobile Wallet for iPhone and Android at CES

Dallas, TX (PRWEB) January 10, 2012

moneto, developed by DeviceFidelity, Inc. and Spring Card Systems LLC, announced today the launch of the world’s first commercially available mobile payment solution that provides iPhone and Android users a convenient way to pay while on the go. The moneto iPhone wallet is powered by MasterCard PayPass technology and linked to a general purpose reloadable MasterCard prepaid card to enable iPhone users to make purchases with their phone at the hundreds of thousands of merchants that accept MasterCard PayPass.

“For over a decade, MasterCard has led the transformation of mobile phones into secure mobile payment devices,” said James Anderson, senior vice president, Mobile and Emerging payments at MasterCard. “We are excited to partner with moneto so that iPhone users can enjoy the convenience of paying for purchases with a simple ‘tap’ at thousands of PayPass locations around the globe.”

For the first time, NFC functionality is available directly to consumers at retail without the need to change devices, upgrade plans or sign new contracts. The moneto mobile payments technology uses a NFC-enabled microSD chip embedded in a patented, protective iPhone case. iPhone users simply need to sign up at moneto.me to receive the case, install the moneto app from the app store, and activate their account. Users can launch the moneto app to view their account balance, check transaction history and make everyday in-store purchases with a tap of their iPhone at any PayPass-enabled contactless payments reader at the point of sale. Users can fund their moneto prepaid account through direct deposit, ACH transfer or cash/credit/debit card-enabled third-party money transfer services such as MoneyGram, Western Union, PayPal or GreenDot.

“As this breakthrough mobile wallet launches in the US, it not only makes mobile payments available to iPhone users for the first time but it also opens the door for consumers to adopt NFC while pushing mobile commerce forward,” said Deepak Jain, DeviceFidelity President and CEO. “We are excited to partner with MasterCard and SpringCard to break the barriers for a rapid effective rollout that will spur both consumers and merchants to adopt this new wave of electronic commerce.”

moneto also comes with a companion prepaid MasterCard to give users the ability to access cash at ATMs and make online purchases, pay bills or shop at merchants that do not accept contactless payments. moneto also enables card-to-card and wire-fund transfers from a secure internet portal accessible via moneto.me.

“Consumers have been hearing about NFC and mobile wallets for years, now with moneto they can finally start using it and with the most popular smartphone device on the planet. The moneto mobile wallet app is focused on delivering a faster and easier shopping experience that is consumer friendly,” said Kevin Haddad, president of SpringCard. “Our vision is simple: People who use our applications should not have to worry ‘Will this work with my phone?’ as consumers can easily make secure purchases regardless of their phone, carrier, or bank.”

SAFETY AND SECURITY

The In2Pay technology behind moneto brings peace of mind to consumers. moneto users can prevent unauthorized access to their account using a PIN that is safely stored in a secure chip inside the microSD. The sleek and durable case design protects the iPhone and the NFC enabled microSD securely stores and encrypts the card information. Additionally, the moneto account is backed by MasterCard’s Zero Liability, which protects consumers against unauthorized purchases.

PRICING AND AVAILABILITY

moneto for iPhone will be available for online ordering in the U.S. immediately at moneto.me for $79.95 which includes $10.00 of pre-loaded funds. The moneto mobile wallet is available in limited release on the iPhone 4S, iPhone 4, iPhone 3GS, and iPhone 3. A number of Android models will also be supported by 2Q12. Additional phone support will be added throughout the year.

The moneto prepaid MasterCard card is issued by University National Bank, member FDIC, pursuant to a license from MasterCard International Incorporated. MasterCard and the MasterCard Brand Mark are registered trademarks of MasterCard International Incorporated.

Apple will further extend its lead in the technology sector this year as it launches a number of new products that will leave its competition scrambling, a new report suggested on Tuesday. Ticonderoga Securities analyst Brian White made Apple his top pick in 2011 and the stock was his top performer, having grown 26% during his coverage. In 2012, Apple remains White’s top stock pick as a trio of new products is set to extend Apple’s lead in the new year. Read on for more.

“We believe Apple’s portfolio in 2012 has the opportunity to create more excitement around the story with our expectation for the unveiling of iTV, [an] ‘iPad mini’ and a major upgrade with the iPhone 5, while we expect the company to finally come to grips with its surging cash balance and issue its first cash dividend,” White wrote in a research note on Tuesday.

The analyst first reported in October that Apple would launch an “iPad mini” in 2012. While a number of reports suggested the new slate would in fact be a smaller iPad positioned between Apple’s high-end iPad and the iPod touch, White used the term “mini” to describe the upcoming tablet’s price point rather than its size. He sees Apple launching a new high-end iPad in 2012, and a less expensive mini model priced in the high to mid-$200 range will accompany it, White believes. More recent reports suggest that Apple will continue to sell the iPad 2 at a lower price once it launches the iPad 3.

Beyond a new iPad that will attack the market at a lower price point, the analyst sees two other Apple products as being huge for the Cupertino, California-based company this year.”We believe 2012 will be the year that Apple unveils iTV in pursuit of a new $100 billion plus LCD TV market opportunity, reinventing a product category with a Smart TV that delivers a clean, crisp and simple experience that connects seamlessly with the Apple digital ecosystem,” White wrote. “Last April, we were the first on the Street to uncover concrete evidence that a full blown Apple TV was already flowing through factories in China for prototype production and we believe it’s about time for the company to unveil its latest innovation.”

Finally, Ticonderoga believes Apple’s next-generation iPhone will feature a cosmetic redesign and a huge feature upgrade. “The iPhone 4S has been a big hit but we expect iPhone 5 to be even bigger with our expectations of a new unibody form factor, larger screen, NFC and 4G,” White wrote. BGR exclusively reported last month that Apple will launch a new iPhone this fall with a redesigned aluminum case.

NTT DoCoMo, KDDI and SoftBank have created the “Japan Mobile NFC Consortium,” which will help the three carriers coordinate and adopt an international NFC standard. Currently, all three operators offer an NFC service dubbed Osaifu-Keitai (wallet phone) which uses a contactless-IC smartcard that’s called FeliCa. Unfortunately, the technology doesn’t work overseas where other carriers use Type A or Type B NFC standards, which means Osaifu-Ketai won’t function properly for NTT DoCoMo, KDDI or SoftBank customers hoping to use their phones for mobile payments overseas. The three carriers hope they can work with handset makers and vendors to encourage the adoption of Type A and Type B NFC standards. The consortium also aims to “create an environment in Japan where service providers can offer efficient, low-cost NFC services based on common standards and rules adopted by the three mobile operators.” The full press release follows after the break.

DOCOMO, KDDI and SOFTBANK Establish Consortium to Promote NFC Services Compatible with Multiple International Standards Partnerships

TOKYO, JAPAN, December 21, 2011 — NTT DOCOMO, INC., KDDI CORPORATION and SOFTBANK MOBILE Corp. announced today their establishment of Japan Mobile NFC Consortium to coordinate the adoption of multiple international standards for near field communication (NFC) technologies incorporated in their mobile devices and services.

Japan’s three mobile operators already offer Osaifu- Keitai™ (wallet phone) mobile services based on the contactless-IC smartcard called FeliCa®. Overseas, however, mobile operators and service providers are increasingly adopting Type A and Type B standards to develop growing markets for NFC services. In view of this worldwide trend, the consortium intends to work with mobile industry groups in Japan, including service suppliers and handset manufacturers, to incorporate compatibility with the Type A and B standards in the Japanese mobile ecosystem.

By ensuring compatibility with multiple NFC standards, the consortium aims to:

- Free mobile users in Japan, both residents and international travelers, from having to concern themselves about different NFC service standards.

- Create an environment in Japan where service providers can offer efficient, low-cost NFC services based on common standards and rules adopted by the three mobile operators.

Intel doesn’t have much of a presence in the mobile phone market right now, but that could change soon. The Santa Clara-based company announced recently that it has reached a deal with Inside Secure in which the French chip maker will supply Intel with NFC chips for upcoming products. “We are highly interested in NFC but we are not announcing any product plans at this time,” an Intel spokeswoman told The Wall Street Journal, noting that Intel might include Inside Secure’s technology in future reference designs. Google Wallet emerged as one of the first NFC-based mobile payment systems to launch in the United States, but it’s only available on one handset, the Nexus S, and is only currently supported by Sprint. Verizon Wireless, T-Mobile and AT&T have invested in a joint initiative called ISIS that is only in the testing phase right now, although Verizon Communications CEO Lowell McAdam said ISIS will begin a “significant rollout” in the coming year.

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A Google representative recently confirmed that Verizon’s Samsung Galaxy Nexus will not ship with support for Google Wallet. “Verizon asked us not to include this functionality in the product,” a Google spokesperson told CNET. We’re not at all surprised by the news. BGR confirmed in November that Verizon is working to include its own solution instead of using Google Wallet. “We’re working to provide expanded services that will provide the best security and user experience in the market around m-commerce,” a Verizon Wireless spokesperson told BGR at the time. “We expect to provide access to an open wallet when those goals are achieved.” Verizon said Tuesday that it is still in talks with Google and that it does not block specific applications. “Google Wallet is different from other widely-available m-commerce services,” Verizon explained. “Google Wallet does not simply access the operating system and basic hardware of our phones like thousands of other applications. Instead, in order to work as architected by Google, Google Wallet needs to be integrated into a new, secure and proprietary hardware element in our phones.” ISIS — a mobile payment initiative created by Verizon Wireless, AT&T and T-Mobile USA in partnership with VISA, American Express, MasterCard and Discover — will likely power the eWallet solution that finally does make its way to Verizon’s Galaxy Nexus at some point in the future. Unlike Google, however, ISIS has yet to make a NFC solution publicly available. 

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Spanish wireless carrier Telefónica Digital announced Wednesday that it has partnered with Research In Motion on a new NFC-based mobile wallet pilot in Spain. The carrier provided 350 of its employees with NFC-enabled BlackBerry smartphones that are pre-loaded with its Telefónica Wallet application. The phones can be used to purchase goods and services at local retailers, or to open doors at the Telefónica’s headquarters with a simple tap to another NFC sensor. Read on for more.

“We have chosen the BlackBerry solution for this pilot because of the security that the platform brings,” Telefónica Digital chief operating officer Julio Linares said. “RIM’s participation has been important for this pilot project, and we are now planning to extend the project to more and more Telefónica employees around the world.”

Telefónica Digital chief executive officer Matthew Key commented further: “Trials such as this are important to ensuring a great customer experience and we look forward to seeing the launch of commercial wallet services in several markets next year.”

Both Google and ISIS, a collaborative between major U.S. wireless carriers and credit card companies, are working on similar initiatives in the United States. Telefónica Digital’s press release follows below.

Telefónica Digital and RIM announce NFC payments with Blackberry smartphones

• Telefónica Digital has developed a version of its Wallet for NFC enabled BlackBerry smartphones

• To be deployed first in Spain as part Telefónica pilot, that will roll out in several internationals markets in 2012

Waterloo ON and Madrid, Spain, 23rd of November- Telefónica Digital and Research In Motion (NASDAQ: RIMM; TSX: RIM) today announced a pilot programm of the Telefónica wallet for BlackBerry® smartphones.

In collaboration with local banks and retailers Telefónica will roll out the Telefónica Wallet for BlackBerry to 350 employees at its headquarters in Distrito Telefónica, Spain. Those taking part in the trial will be able to pay in a simple, easy, safe and convenient way by simply tapping their BlackBerry smartphones against a reader. Employees that are part of the NFC pilot project will also be able use their BlackBerry smartphone (in lieu of a security card) to gain physical access to the Telefónica headquarters office.

The Telefónica Wallet for BlackBerry currently supports the following NFC-enabled smartphones: BlackBerry® BoldTM 9900, BlackBerry® CurveTM 9360 and BlackBerry® CurveTM 9380, all of which run the new BlackBerry® 7 operating system.

According to Julio Linares, COO from Telefónica, S.A, “We have chosen the BlackBerry solution for this pilot because of the security that the platform brings.” He continued: “RIM’s participation has been important for this pilot project, and we are now planning to extend the project to more and more Telefónica employees around the world”.

“We are getting ever closer to the point where our customers will be able to take the contents of their wallets and put them on their mobiles,” said Matthew Key, Chairman & CEO Telefonica Digital. “Trials such as this are important to ensuring a great customer experience and we look forward to seeing the launch of commercial wallet services in several markets next year.”

“RIM is committed to supporting the advancement of NFC and its many applications in the market,” explained Jim Balsillie, Co-CEO at RIM. “We have a strong partnership with Telefónica Group and we are very proud to participate in this important pilot, which allows people to use their BlackBerry smartphone in place of separate physical cards for mobile payments and building access.”

Registro Mercantil Provincia de Madrid, Tomo 12.534, Folio 21, Hoja M-6164, Inscripción 1359a, del Libro de Sociedades, CIF A-28/015865. Sede Social: Gran Vía 28, 28013 Madrid (España).The Telefónica Wallet for BlackBerry makes use of SIM-based NFC capabilities, offering a simple interface for managing cards. The application replicates a physical wallet, showing the different cards available to the user. Once the user has selected a card, they are offered a range of options including making transactions, getting account balances and receiving confirmations from the bank.

Additional partners participating in the pilot include banking and financial institutions, retail and food stores, gas stations and others.

BlackBerry smartphones offer a secure environment for NFC payments. The BlackBerry Bold 9900 and Curve 9360 smartphones have already received certification for NFC payments and are compatible with the UICC/SWP protocol which, when used with Telefónica SIM cards, provides a secure platform for NFC use.

We’ve been hearing that smartphones will transform into mobile wallets “any year now” for at least the past five years. But with the introduction of the Google Nexus S, Google Wallet, the ISIS initiative, and a handful of smartphones with integrated NFC, it looks like the technology is finally poised to take off. According to Taiwanese phone makers, more than 50% of all smartphones will include NFC within the next 2-3 years. That comes as no surprise: Google’s latest Android 4.0 (Ice Cream Sandwich) operating system has support for NFC built-in, a number of BlackBerry smartphones offer NFC, the Galaxy S II models on AT&T and T-Mobile have some form of dorment NFC support, and the brand new Samsung Galaxy Nexus also supports the technology. The delay in adoption, DigiTimes said, can be attributed to the current ecosystem and standard specification. Read on for more.

As it stands, ISIS — which is an initiative with American Express, MasterCard, Visa, Discover, T-Mobile, Verizon Wireless and AT&T on board — is competing with the Google Wallet standard used by Sprint, MasterCard and a number of retailers who already have point-of-sale systems deployed. In addition, carriers, retailers, manufacturers, banks, credit card companies and more all need to reach agreements on who will get paid a percentage of sales. In any case, we’re excited to see the day when more retail outlets begin accepting payments from mobile phones, and 2-3 years from now doesn’t seem that far off.

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Market research firm In-Stat released a report on Monday that suggests NFC chip shipments will grow dramatically during the next several years as an increasing number of mobile devices adopt near-field communications (NFC) technology. In-Stat said NFC chip shipments will surpass 1.2 billion units by 2015, the same year the technology is expected to reach a 30% global penetration. “As the costs of NFC chips decline, and NFC radios are combined with other chip functions, the cost to integrate NFC into handsets will be outweighed by the benefits,” In-Stat research director Allen Nogee said. “The growth of combo chips will also allow NFC radios to piggyback on technology that already has significant penetration in the market. For example, Bluetooth radios, which currently have 100% market penetration, can be integrated with NFC radios, making the choice to include NFC easy for OEMs.” Read on for more.

The adoption of NFC for mobile payments has been slow to catch on in the United States. Sprint currently offers the only handset capable of making mobile purchases with Google Wallet, the Nexus S 4G, but Verizon, AT&T and T-Mobile are hoping the ISIS initiative will help drive adoption in the near future. In-Stat said the NFC market is moving away from mobile payments and towards marketing uses, however, where retailers might be able to embed the technology into posters and other advertisements.

There are plenty of other uses for NFC, too. Google recently introduced a new “Android Beam” feature of Android 4.0 Ice Cream Sandwich that will allow users to share content, such as games, pictures or other media, by tapping one phone to another. In-Stat’s press release follows below.

NFC Chip Shipments to Surpass 1.2 Billion by 2015, Says In-Stat

SCOTTSDALE, Ariz., October 24, 2011—As the number of mobile payment users grows to over 375 million in 2015, the demand for devices with near field communications (NFC), the underlying communications technology behind many mobile payment solutions, grows as well.  New research from In-Stat (www.in-stat.com) forecasts that adoption of this technology will push global annual shipments of NFC chips to over 1.2 billion by 2015.

NFC is a set of technologies that supports communications between two devices in close proximity to each other. An NFC link is very quick to set up, enabling small amounts of data to be exchanged over short distances.  This capability is unique compared to other wireless technologies, it and makes NFC an ideal solution where quick exchange of small amounts of data is paramount to quality user experiences such as mobile payments.

“As the costs of NFC chips decline, and NFC radios are combined with other chip functions, the cost to integrate NFC into handsets will be outweighed by the benefits,” says Allen Nogee, Research Director. “The growth of combo chips will also allow NFC radios to piggyback on technology that already has significant penetration in the market. For example, Bluetooth radios, which currently have 100% market penetration, can be integrated with NFC radios, making the choice to include NFC easy for OEMs.”

Recent research findings include:

• Today, the focus of the NFC market is shifting from payment applications that can be enabled by NFC, to marketing applications. With this focus shift, we expect retailers to begin pilot programs in the latter part of 2011 and into 2012 that incorporate smart posters into their signage and outdoor advertising strategies.
• NFC will reach 30% global penetration by 2015
• Global annual shipments of NFC chips will grow at a CAGR of 129% over the forecast period.
• New In-Stat research,NFC Chips and Tags: Worldwide Market Analysis and Forecast (#IN1105140SI) provides insights into the market for NFC devices and components. It compares and contrasts NFC with other complementary and competitive technologies and looks at market drivers, including mobile payments, and market barriers.

New In-Stat research, NFC Chips and Tags: Worldwide Market Analysis and Forecast (#IN1105140SI) provides insights into the market for NFC devices and components. It compares and contrasts NFC with other complementary and competitive technologies and looks at market drivers, including mobile payments, and market barriers.

Forecasts include:

• NFC chip and tag shipments
• Mobile handsets shipping with NFC chips
• NFC chip shipments for readers
• NFC-enabled infrastructure
• NFC tag shipments for smart posters and marketing
• Regional analysis includes Asia Pacific, Europe, and Americas
• Vendor profiles include Broadcom, Inside Secure, NXP Semiconductors, Renesas Electronics, Samsung Semiconductor, and STMicroelectronics

New Jersey Transit will soon introduce limited support for Google’s NFC-based mobile payment system, Bloomberg Businessweek reported on Wednesday. Google Wallet is currently only available on one handset, Sprint’s Nexus S 4G, and supports a handful of retailers including Foot Locker, Macy’s, Jamba Juice, Walgreens and Subway. Commuters will be able to use the handset to quickly purchase tickets in a tap-and-go fashion at New York Penn Station, Newark Liberty International Airport Rail Station and several bus lines including the 120, 87, 81, 80, 43, 6 and 126. “Transit is the fastest way to accelerate adoption and reach usage density in major urban centers by habituating the behavior of tapping and paying with phones,” Google vice president of commerce Stephanie Tilenius said. 

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Google recently announced that its Google Wallet NFC mobile payment service now accepts a host of new retail locations, including American Eagle Outfitters, Foot Locker, Jamba Juice, Guess, The Container Store, Toys”R”Us and OfficeMax. Previously, the payments were only accepted in a handful of Walgreens and Subway sandwich stores in San Francisco and New York. In addition, Google says its Offers service, which provides discounts at each location, is also available in a number of the aforementioned retail outlets. Users can purchase a smoothie from Jamba Juice for $2 or take 15% off at Macy’s, for example. Unfortunately, Google Wallet is still only available to owners of Sprint’s Nexus S 4G, but we hope to hear more about Google’s NFC plans during its joint Ice Cream Sandwich press conference with Samsung in Hong Kong tonight at 10:00 p.m. EST. A video of Google Wallet in action follows below.

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Despite the growing number of mobile payment initiatives such as ISIS and Google Wallet, only a handful of consumers actually want to use their phones as a mobile wallet. According to new research from Intersperience, just 17% of U.K. adults are interested in using their phones to purchase goods. 24% of the 1,000 participants in Intersperience’s survey were afraid of security issues, although they admittedly didn’t “know why.” 24% also thought their mobile phone is more likely to be stolen than a wallet. 44% of the survey respondents were afraid to use their phone as a mobile wallet due to the lack of security software. “There is no doubt that the phone hacking scandals have unnerved consumers,” Paul Hudson, Intersperience CEO said. “We also detected a marked rise in security concerns when people use devices with mobile internet access compared to fixed access via PCs. These beliefs will impact the pace at which UK consumers adopt mobile payment systems.” Currently, just 8% of U.K. adults use their mobile phone for payments, but that figure might increase as Google rolls out its Wallet option in the U.K. next year. Read on for the full press release from Intersperience.

UPDATE: Regarding questions surrounding mobile payments, security and more, a MasterCard spokesman let us know that Mung Ki Woo, MasterCard’s head of mobile, will be fielding questions on Twitter tomorrow to help consumers better understand the technology, security and more.

Consumers Fear Phone Hackers Will Crack Mobile Wallets

LONDON, October 14, 2011/PRNewswire/ –

Intersperience research reveals mobile payment security concerns

    - phone hacking fears prevalent among consumers
    - 44% worry about lack of security software on mobiles
    - only 17% of consumers want to use mobiles as wallets in future

Phone hacking fears dominate consumers’ security concerns about new ‘mobile wallet’ payment systems and are likely to hamper UK adoption of new ‘swipe-and-pay’ smartphone systems, according to the latest research from Intersperience.

The international consumer research specialist questioned UK adults on their attitudes towards using mobile phone payment systems and found that just 17% would like to use their mobile as a wallet in future. The top concern cited by consumers was a lack of security software, with 44% citing this as their chief worry.

Intersperience’s Digital Selves project researched the views of more than 1,000 UK consumers and the results coincide with the trial of Google’ s new mobile electronic wallet system in the United States ahead of an anticipated UK launch in 2012.

It revealed a mix of emotional and rational views on mobile payment security with 24% of people saying using a mobile for payment ” feels less secure but I don’t know why”, while a further 24% believe their mobile is more likely to be stolen than their wallet.

It also showed that many consumers feel vulnerable following high profile phone hacking scandals. One respondent said: “After the recent phone hacking scandals it’s clear that mobiles can be hacked. I’d be worried criminals would learn to do it.”

Paul Hudson, CEO of Intersperience said: “There is no doubt that the phone hacking scandals have unnerved consumers. We also detected a marked rise in security concerns when people use devices with mobile internet access compared to fixed access via PCs. These beliefs will impact the pace at which UK consumers adopt mobile payment systems.”

The research showed that just 8% of adults currently use their mobile phone for payment although this is expected to increase as 21% said they would like to use their phone to buy something in future.

Digital Selves also looked at consumers’ willingness to use PCs and mobiles to pay for goods or services ordered online. It found that while 11% of people would hesitate to make a purchase via PC, this more than trebled to 37% when it came to the proportion who would hesitate to buy via a mobile phone.

Hudson commented: “There is a common but not necessarily logical perception that as your internet link becomes ‘untethered’ your information is automatically less secure. The belief stems from the context of mobile usage which is generally when you are on the move in public places, although in reality there are far higher instances of security breaches over PCs than mobiles.”

The younger generation emerged as the keenest future fans of mobile commerce as one in three (33%) said they would like to use their mobiles to buy in future. Under 18s are also keener on mobile wallets or payment systems, with 25% happy to use one instead of a traditional payment method.

Hudson said: “Today’s adults may be adopting a cautious stance on mobile payments but we expect the next generation to be more enthusiastic. Digital Natives will be in the vanguard of mobile commerce.”