Juniper Research predicts that P2P fund transfers and mobile payments in the developing world, together with the commercialisation in 2009 of NFC (Near Field Communications) based mPayments will generate transactions worth approximately $22bn.
There is much to be positive about with mPayments; the ecosystem is evolving into one where cooperation between the major stakeholders is creating an atmosphere that is incubating intelligent ways in which we can use the mobile phone for payment.
There is still much to do, resolving the business model and the revenue share issues are a priority; but much of the technology is available and there is a genuine willingness from the major stakeholders to resolve their differences and cooperate.
Greater availability of NFC devices, for physical mobile payments, coupled with secure and easy-to-use applications, backed by the large credit card organisations and financial institutions, will create the foundation for a healthy alternative to cash and other mainstream payment applications.
Report author Alan Goode said: "The technology is available now to enable secure and fast payments to be initiated on the mobile phone. The business model stills needs some work but there are positive signals emanating from the industry that will create considerable revenue for all parts of the ecosystem. I am cautiously optimistic for the future success of mPayments."
Juniper Research illustrates the current and near-future status of mobile payments with interviews, case studies and analysis from representatives of some of the leading organisations in the growing mobile payment industry.
Highlights from the report include:
-- The value of mobile transactions will grow to nearly $22bn by 2011.
-- SMS based Person2Person (P2P) fund transfers and payments will drive the developing world mPayment market.
-- Adequate supply of contactless chip enabled devices, NFC and FeliCa, to enable over 52m mobile phone users to make physical payments by 2011.
-- Retailers benefit with potentially lower transaction fees and increased basket size.
-- Forecasts for NFC enabled devices.
White papers and further details of the study 'Mobile Payment Strategies & Markets 2007-2011' can be freely downloaded from http://www.juniperresearch.com/.