Info-tech

Gartner sees global mobile payment volume to touch $86 b in 2011

PTI New Delhi | Updated on July 21, 2011

Worldwide mobile payment volume is expected to nearly double to $86.1 billion in 2011 from $48.9 billion in 2010, says market research firm Gartner.

The number of mobile payment users worldwide will surpass 141.1 million in 2011 against 102.1 million in 2010, it said.

Gartner analysts, however, forecast a slower-than-expected growth for mobile payment market in spite of strong growth projections.

“While developing markets have favourable conditions for mobile payments, such as high penetration of mobile devices and low banking penetration, this is no guarantee of success, unless service providers adapt their strategies to local market requirements,” the Gartner research director, Mr Sandy Shen, said in a statement today.

Mr Shen added that in developed markets, companies are trumpeting the prospects of Near Field Communication (NFC) without realising the complexity of the service model.

“We believe mass market adoption of NFC payments is at least four years away,” he said.

Gartner identified effort to change user behaviour as one of the biggest challenges in mobile payment business.

The firm found that SMS and Unstructured Supplementary Service Data (USSD) are likely to remain the dominant access technologies in developing markets due to the constraints of mobile phones.

USSD is used by telecom operators to send alert to mobile phone users at the end of each calls or SMS.

The research found that Wireless Application Protocol (WAP) will remain the preferred mobile access technology in developed markets, where the mobile Internet is commonly available and activated on the phone.

Money transfers and prepaid top-ups will drive transaction volumes in developing markets, the report said.

“We predict that in 2011, merchandise purchases will account for 90 per cent and 77 per cent of all transactions in North America and Western Europe, respectively,” Mr Shen said.

Published on July 21, 2011

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like