Payments made via NFC-enabled mobile handsets will account for $130 billion in worldwide consumer retail spend by 2020, according to the latest research from Strategy Analytics. This equates to 254 million mobile users making five payments per month at an average of slightly less than $9 per transaction.

The report and forecast, "Global Mobile NFC Payments to Exceed $130 Billion by 2020," quantifies the scale of the NFC-based mobile payment opportunity and identifies the launch of Apple Pay initiatives by payment networks to drive contactless payment acceptance among retailers, and consumer demand for mobile payments, as key catalysts for growth.

Widespread acceptance of NFC and contactless payments by retailers will be critical to the adoption and use of NFC-based payments by consumers, according to Strategy's report. If consumers can only use their NFC-enabled phones to make payments in a small fraction of shops, then its usefulness as a method of payment is clearly compromised. To date, retailers have been slow to support NFC payments in stores. However, Strategy believes the launch of Apple Pay in October 2014 combined with a push by payment networks will stimulate the adoption of NFC-enabled point-of-sale terminals by retailers, according to the press release.

Nitesh Patel, director of the firm's wireless media strategies, notes: "The launch of Apple Pay is significant because it means all major smartphone vendors support NFC-based mobile payments, but it also provides a credibility boost for the NFC payments sector as a whole. Furthermore, continued efforts by payment networks — for example MasterCard has set a target of all MasterCard payment points supporting NFC in Europe by 2020 — will be crucial in stimulating its use and adoption."