Worldwide Mobile Payment to Cross $171.5 billion in 2012
Bangalore: Worldwide mobile payment transaction values will surpass US$171.5 billion in 2012, a 61.9 percent increase from 2011 values of $105.9 billion, according to Gartner, Inc. The number of mobile payment users will reach 212.2 million in 2012, up from 160.5 million in 2011.
Sandy Shen, Research Director at Gartner said, "We expect global mobile transaction volume and value to average 42 percent annual growth between 2011 and 2016, and we are forecasting a market worth $617 billion with 448 million users by 2016. This will bring opportunities for service and solution providers who will need to cater to the local demand patterns to customize their offerings."
The mobile payments market will experience fragmented services and solutions for the next two years. Technology providers will have to cater their solutions to the local market that will be using different access technologies, business models and partners, and under different regulatory conditions.
SMS remains the dominant access technology in developing markets because of the constraints of mobile devices and the ubiquity of SMS. Web/WAP is the preferred access technology in North America and Western Europe where mobile Internet is commonly available and activated on user devices. Gartner expects Web/WAP access to account for about 88 percent of total transactions in North America and about 80 percent in Western Europe by 2016. Near Field Communication (NFC) transactions will remain relatively low through 2015, although growth will start to pick up from 2016.
"NFC payment involves a change in user behavior and requires collaboration among stakeholders that includes banks, mobile carriers, card networks and merchants. It takes time for both to happen, so we don't expect NFC payments to come into the mass market before 2015. In the meantime, ticketing, rather than retail payment, will drive NFC transactions," says Chen.
In developing markets, money transfer and airtime top-ups will account for most transaction volume, and money transfers will account for the largest portion of the transaction value because of the demand for secure and efficient ways of storing and transferring money. Ticketing/parking also appeals across many markets because it can improve efficiency in transacting, apart from buying bus and railway tickets using a mobile payment service.
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