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Android Marshmallow to Boost NFC Payments

The Internet is buzzing with Google's official announcement of Android Marshmallow.  When it rolls out this fall, it will include Android Pay.  Android Pay is essentially a streamlined version 2.0 of Google Wallet, originally introduced in 2010.  All the new system requires is that you unlock your phone and place it near the contactless terminal at the point of sale.  Google Wallet involved launching an app and typing in a pin number. 
This tap-to-pay functionality is enabled with a wireless technology called Near Field Communication (NFC).  NFC is known around the world as the enabling technology for easy payments, ticketing and access control.  It is quickly becoming a key part of the growth of the Internet of Things as well.  Qualcomm recently announced that it will include NXP's NFC solution in the Snapdragon processor platform which powers mobile devices, wearables, and automotives.  A new Semico Research report,  NFC:  Security at Hand 2015 Update reports growth in these markets will fuel a 26% CAGR in NFC from 2014 to 2020.
"The smartphone market for NFC got a huge boost in 2014 with the introduction of the iPhone 6/6 Plus and Apple Pay," says Adrienne Downey, Director of Technology Research.  "Between Apple Pay, Android Pay, and the adoption of EMV payment standards, we should finally see adoption of NFC take off in the United States as it has already in the rest of the world."
Key findings of the report include:

  • Wearables will show the highest CAGR at 167% from 2014-2020. 
  • Smartphones will grow to represent about 37% of the market by 2020.
  • Over 5 billion NFC-enabled devices will ship each year by 2020.

Semico Research's recent report, NFC:  Security at Hand 2015 Update, provides an overview of NFC and competing technologies, profiles on NFC chip manufacturers, and insight into the various applications NFC included in the forecast:

  • Desktop, notebook and tablet PCs
  • Video game and handheld consoles
  • Other consumer (toys, headphones, headsets, and wireless speakers)
  • Smartphones
  • Wearables (Smart watches, medical)
  • Routers
  • ATMs and payment terminals
  • Smart cards
  • Vehicles and key fobs

Companies mentioned in this report include the following:  Activision, ams, Apple, Broadcom, CSR, Dialog Semiconductor, Disney, EM Microelectronic, EMVCo, Gentag, Hasbro, Infineon, INSIDE Secure, Intel, Keyssa, LEGO, Marvell, Maxim, Mediatek/Mstar, Nintendo, Nordic Semiconductor, NXP, Qualcomm, Samsung, Sony, STMicroelectronics, Texas Instruments, Thinfilm, and Toshiba.

This report is part of Semico Research's Internet of Everything Portfolio that includes, among others, the following reports:
The Smart Economy: The Internet of Everything
IoT Security: At What Cost?
Sensors in Wearables and Mobile: The Many Players

For more information, contact Rick Vogelei.
Phone: (480) 435 - 8564

About Semico
Semico is a semiconductor marketing & consulting research company located in Phoenix, Arizona.  Semico was founded in 1994 by a group of semiconductor industry experts. We have improved the validity of semiconductor product forecasts via technology roadmaps in end-use markets.  Semico offers custom consulting, portfolio packages, individual market research studies and premier industry conferences.

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