mPayment transactions to hit $22bn by 2011

HAMPSHIRE,UK: 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 m-payment market.

•       Adequate supply of contactless chip enabled devices, NFC and

Felica, to enable over 52m mobile phone users to make physical payments

2011.

•       Retailers  benefit  with potentially  lower transaction fees and

increased basket size

•       Forecasts for  NFC enabled devices.