The value of global payments via mobile devices is expected to reach around $507 billion this year, a rise of nearly 40% year-on-year.
A recent report from Hampshire-based Juniper Research says the opportunity for contactless mobile payments has been bolstered by contactless infrastructure deployments, with the majority of POS (Point of Sale) terminals now shipping with contactless.
By 2017 the value of global payments via mobile devices is expected to hit $1.3 trillion, according to Juniper’s report in 2012. RAM Research estimated the figure will hit $710 billion in 2015 and and $993 billion in 2016.
The report Mobile Payment Strategies: remote, Contactess & Money Transfer 2014-2018, found that growth would continue to be driven by purchases of physical goods via mobile devices. Average transaction sizes over tablets are already exceeding those via desktop PCs in many markets. It also observed that while spend via smartphones was increasing sharply, their primary function in retail was as search and discovery devices with the final purchase being made on the tablet.
Meanwhile, it argued that the scale of digital transactions was receiving a significant boost through the adoption of mobile ticketing applications, with metro and transit authorities in Europe and North America that have already deployed services, experiencing high levels of adoption.
Juniper says the prevalent business models for NFC have been unattractive to banks and left them dependent on multiple network operators, each of which may have its own approach to mobile wallet management. HCE (Host Card Emulation) solutions have the potential to revitalize a market which has struggled to gain traction.
Additionally, the report observed that progress in contactless mobile payments had been slow, with few commercial launches. Nevertheless, it argued that the prognosis for the medium term was brighter, following the emergence of cloud-based SE (Secure Element) solutions which offer the opportunity for reduced time-to-market for NFC (Near Field Communications) solutions.
For more data on Mobile Payments access CardData®. For information and commentary on Mobile Payments visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. Custom RAM Research® projects on Mobile Payments are available exclusively through CardWeb.com.®