Over the next 12 months, mobile handsets will be provided with mobile contactless payments and a wealth of other applications enabled by Near Field Communications or NFC. The applications though will not be in a format originally envisioned due to the lack of commercially available NFC-embedded handsets along with the rise of mobile handsets with microSD slots. A new approach has been promised by NFC that will bypass the core involvement of both the handset vendors and the mobile network operators.

ABI Research (News - Alert) has studied the new technologies and business environment that will bring NFC to the market in its report, "Near Field Communications: Embedded and Aftermarket Contactless Applications for Mobile Devices and Other Consumer Products." This report splits NFC IC forecasts into three key NFC markets, namely mobile handsets, computer and consumer electronics, and peripherals for mobile handsets. Significant NFC uptake will be driven by the combination of these three markets and NFC ICs will approach 300 million shipments in 2015. More NFC ICs were shipped for use in computers and peripherals than for handsets in the last year. New microSD offering of joining stickers as a way to bring contactless connectivity to existing mobile handsets along with NFC's existing functionality is coming to the market.

According to principal M2M analyst Jonathan Collins, while mobile handsets remain the key market for NFC, the increasing potential of the technology is driving NFC into other devices and form factors. The mobile handset landscape for many NFC vendors and supporters will be changed by the potential to offer NFC to handsets with microSD slots.

Mass NFC handset rollouts will see MNOs as the gatekeepers. However with the emergence of microSD cards alongside other offerings such as active and passive contactless stickers over the next five years will provide mobile users with initial access to mobile contactless payments.

A more direct route to potential consumers for financial institutions looking to deliver contactless mobile phone payments will be provided by these options. A renewed incentive for handset vendors and their major network operator customers to start delivering embedded NFC handsets will also be provided by these changes.