The number of mobile wallets using contactless technology is expected to reach 200 million by the end of 2016, representing growth of more than 100% from the end of 2014.
A new study from Juniper Research also found while historic growth of mobile wallet usage was driven by P2P (Person to Person) services for the unbanked in developing markets, the launch of Apple Pay has prompted a hive of activity in the contactless arena. It argued that with public awareness of contactless heightened in the wake of Apple’s launch, competing services such as Samsung Pay and the forthcoming Android Pay would no longer need to seed the market.
Additionally, the research – Mobile Wallets: Contactless & Remote Payments 2015-2020 – found that numerous banks were partnering with Visa or MasterCard to implement own-brand contactless wallets using a cloud-based secure element.
However, the research observed that the MCX (Merchant Customer Exchange) Consortium had postponed the launch of its own contactless service, with several retailer partners now abandoning their ‘closed shop’ stance towards Apple Pay. Furthermore, the Consortium has not agreed terms with any leading card holders, citing the high transaction fees as a stumbling block.
Other key findings from the report include:
· Wallets run by mobile operator consortia continue to fare badly, with the UK’s Weve dropping its planned wallet, and Softcard folding in the US.
· In developing markets, there has been a significant upscaling of wallet usage for savings and loan disbursements, while more than 100 million are now in use for micro-insurance.
The whitepaper, ‘Mobile Wallets ~ The Future of Cash’, is available to download from the Juniper website together with further details of the full report and the attendant Interactive Forecast Excel (IFxl).
For data, background and forecasts Mobile Wallets: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).