HAMPSHIRE, United Kingdom - A new Juniper Research study has determined that the total value of mobile payments for digital and physical goods, money transfers and NFC (near field communications) transactions will reach $670 billion by 2015, up from $240 billion this year. These forecasts represent the gross merchandise value of all purchases or the value of money being transferred.
The new "Mobile Payment Strategies" report revealed that all segments will exhibit two to three times growth over the next five years. This growth will be driven by the rapid adoption of mobile ticketing, NFC contactless payments, physical goods purchases and money transfers as people in both developed and developing countries use their devices for everyday transactions.
Some 20 countries are expected to launch NFC services in the next 18 months, resulting in transactions approaching $50 billion worldwide by 2014. Meanwhile the need for financial access in developing countries is such that active mobile money users will double by 2013 and drive transaction values accordingly.
"Our analysis shows that emerging segments such as physical goods payments, NFC and money transfers will fuel market growth by a factor of 2.7 times by 2015. Digital goods is the largest segment and, although forecast to more than double, it is not growing as quickly as some of the newer segments," said David Snow, Juniper senior analyst.
The report also found that the top three regions for mobile payments (Far East/China, Western Europe and North America) will represent 75 percent of the global mobile payment gross transaction value by 2015. Digital goods payments will account for nearly 40 percent of the market in 2015.
The study provides the big picture of mobile payments, providing forecasts of the main market segments of digital and physical goods purchases, contactless NFC and domestic and international money transfers and remittances, providing regional forecasts of gross transaction values.
NACS explores the implications of mobile payments in "The High Tech Payments Battle," in the May issue of NACS Magazine.