Mobile Payments Continues to Grow At Rapid Pace
A recent research published by Gartner, information technology research and advisory company, says that this year will see more than $171.5 billion in mobile payment transactions — a rise of 61.9 percent on 2011′s $105.9 billion. 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.”
Another point report makes is that the use of Near Field Communication(NFC), which is considered to be future of mobile payments, will remain relatively low till 2015. 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.
“NFC payment involves a change in user behavior and requires collaboration among stakeholders that includes banks, mobile carriers, card networks and merchants,” said Ms. Shen. “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.”
It will be interesting to note that this report doesn’t take into consideration the changes we may see if Apple launches an iPhone with an NFC Chip into it. A new feature added by Apple is followed religiously by its competitors, and this exactly is what may increase NFC’s adoption drastically.
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