The NFC Forum’s 2024 Usage and Adoption Study, conducted by ABI Research, highlights the accelerating adoption of Near Field Communication (NFC) technology, cementing its position as the leading contactless payment solution.
Shift from contactless card to device
With over 80% of respondents using smartphones or smartwatches for payments, the study reveals a growing paradigm shift toward mobile-first financial transactions.
Contactless Payments
For the first time, the majority of consumers prefer mobile devices over contactless cards for payments.
The technology now stands as the most secure, convenient, and reliable option for contactless transactions, outperforming QR codes, traditional cards, and even cash in these categories.
This shift is evident in the numbers:
- 95% of respondents have left their wallets at home to rely on NFC-enabled devices at least once.
- Over half (53%) do this multiple times each week.
- Daily use of NFC wallets has surged to 57%, up dramatically from 15% in 2022.
These trends emphasise growing consumer confidence in mobile wallets and NFC’s inherent benefits, including biometric security and seamless user experiences.
Expanding Use Cases Beyond Payments
While NFC’s dominance in payments is clear, the technology is evolving into a multi-functional tool:
- Consumers are increasingly interested in multi-purpose taps, allowing actions like payment, receipt collection, and loyalty rewards with a single interaction.
- Sustainability-driven applications, such as tapping products for recycling information, are also gaining traction, with 60% of respondents prioritising these features.
- The potential for NFC-enabled products to provide authentication, detailed product information, and even wireless charging is poised to redefine the consumer experience.
The study’s findings align with broader market shifts, where digital wallets are becoming indispensable tools for managing not just payments but also keys, IDs, and even transit passes.
Despite its rapid growth, NFC adoption faces challenges:
- While 55% of respondents now prefer digital-first solutions, physical cards remain popular due to their familiarity and reliability, particularly for older demographics.
- Broader NFC integration across industries will require significant consumer education and technological standardization.
To address these gaps, the NFC Forum highlights the need for continued innovation and collaboration among device makers, app developers, and businesses.
In a world where 95% of users are willing to ditch their wallets for NFC-enabled solutions, the race is on to unlock its full potential and redefine how we interact with the digital and physical worlds. For businesses, the message is clear: embrace NFC now to stay ahead in an increasingly mobile-first economy.
“NFC technology enables the creation of efficient, reliable, secure, environmentally-friendly, and smart solutions,” says Mike McCamon, Executive Director of NFC Forum
“And with emerging concepts such as multi-purpose tap – an evolution of NFC that allows users to complete multiple required actions in a transaction in a single tap – device makers and solution providers are being empowered to create transformative solutions across all manner of vertical industries.
Access control, payments, digital identity, transport and even emerging Digital Product Passport requirements for sustainability all stand to benefit from improved usability and security thanks to NFC.”
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