Mobile Payments Market Forecast for 2013

Last week Juniper Research released a new report forecasting the growth of the Mobile Payments Market through 2013. The study projects that purchases using Near Field Communications (NFC) enabled phones coupled with money transfers are likely to total $600 billion globally by 2013. Howard Wilcox, the author of this report, points to the continued growth in mobile subscriber penetration & the availability of exciting & easy to use services as the driving forces to this type of growth.

Wilcox concluded that today’s mobile market is mostly dominated by the purchase of digital good such as games, ringtones, & music. The new opportunities in this space will include the future of NFC, mobile money transfer (MMT), & the purchase of physical goods via the mobile device. The report suggested that the Far East & China, western Europe, & North America will represent more than 70% of global MMT gross transaction value by 2013.

In order for this market to mature at the rate suggested by Juniper we’ll need to see a number of things fall into place. The good news is that the mobile operators can now support the bandwidth & speeds that these mobile payment applications will require. Also, mobile operating systems such as Symbian, Apple, & Windows Mobile are now open for us to develop these new mobile payment applications.

So what pieces to this puzzle are we still missing?

The mobile device manufacturers such as Nokia, Samsung, RIM, & Apple need to begin releasing new phones with NFC technologies built in. Without these devices in the market, retailers will not begin updating their existing Point of Sale (POS) infrastructure to accept contactless payments. Once released, the device manufacturers will need to make these new mobile NFC enabled devices affordable. Unless people are purchasing these new mobile devices, the retailers will still be reluctant to update their existing POS solutions.

Beyond the mobile devices & the POS infrastructure consumers need to be educated. Consumers must understand how these new mobile payment solutions will work, the value in using these solutions, & most importantly the consumer needs to be convinced that these solutions are safe & secure. There have been far too many reports of identity theft for consumers not to wonder how this solution is safer than what they are using today.

For those of us partaking in this new market the sky is the limit. Of course we still have some obstacles to navigate & it’s going to require platform providers like NetworkIP, mobile device manufacturers, mobile service providers, retailers, application developers, & the banking & credit card companies to all work together.

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One Response to Mobile Payments Market Forecast for 2013

  1. John Levett says:

    Juniper Research forecasts in excess of 100m Mobile Users to make International Money Transfers by 2013

    Hampshire, UK – 30th September 2008: A new analysis by Juniper Research of the rapidly evolving market for money transfer and remittances via mobile phones forecasts that in excess of 100m users globally will use their mobile phones to make international money transfers by 2013. These cross border mobile money transfers are currently in their infancy, but are expected to gain traction over the next two to three years, especially on migration routes such as Philippines/Middle East and Mexico/USA.

    The report found that there is a significant opportunity for mobile money transfer service providers and vendors, for both national services between mobile users in a single country and internationally. The study explores how mobile money transfer will transform the ability of the ‘underbanked’ population and migrant workers to make remittances, using their mobile phones as mobile wallets.

    Report author Howard Wilcox explained: “The vast increase in migrant workers globally has fuelled the number of remittances being sent home to friends and families regularly. The mobile phone will become a vital enabler in developing countries because often many more people have phones than have bank accounts. The GSM Association Mobile Money Transfer global initiative emphasises the importance that is attached to this across the mobile industry as a whole.”

    Highlights from the report include:
    • Mobile international transfers are forecast to grow in frequency as users become more accustomed to the process, exceeding one per month by 2013 on average globally.
    • The opportunity for companies providing national and international money transfer services is forecast to exceed $5bn by 2013.
    • The top 3 regions (W. Europe, N. America and Africa & Middle East) will represent over 75% of the global international mobile money transfer gross transaction value by 2013.

    The report provides six year regional forecasts of mobile money transfers and remittances, providing data on subscriber take-up, transaction sizes and volumes for both national (domestic) and international transactions. Crucially, the report identifies the incremental ARPU opportunity for mobile network operators, arising from these new services. Case studies and interviews with companies pioneering in this market are also featured.

    Whitepapers and further details of the study, ‘Mobile Payment Markets: Mobile Money Transfers and Remittances 2008-2013’ can be freely downloaded from http://www.juniperresearch.com. Alternatively please contact John Levett at john.levett@juniperresearch.com, telephone +44(0)1256 830002.

    Further reports in the Mobile Payments Series are:
    • Mobile Payment Markets: Digital and Physical Goods 2008-2013 (published in July 2008)
    • Mobile Payment Markets: Contactless NFC 2008-2013 (published in July 2008)
    • Mobile Payment Markets: Strategies and Forecasts 2008-2013 (published in September 2008)

    Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

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