According to a recent report from Juniper Research, global mobile payment transactions are expected to grow nearly fourfold over the next five years to more than $1.3 trillion.
The study, titled Mobile Payments Strategies: NFC, Remote Purchases & Money Transfer 2012-2017, suggests that growth will primarily be driven by sales of physical goods by both remote purchases and NFC transactions.
These transactions—which will represent around 54% of the total value of mobile payments by 2017—have already been stimulated by the wide adoption of NFC support infrastructure and the increased engagement of wireless operators with the development of mobile commerce initiatives. However, Juniper Research forecasts that physical goods sales conducted via the mobile phone would still only account for around 4% of global retail transactions by 2017.
While the NFC value chain is developing relatively fast, like the Google Wallet initiative, in order to fulfill its full potential, better marketing initiatives behind the mechanism would need to be implemented dramatically.
As report author Dr Windsor Holden pointed out, “While we are now seeing significant deployments of contactless infrastructure, consumer awareness is extremely low. Thus, it is imperative for all members of the NFC value chain to engage with the public to heighten its profile as a simple, intuitive payment mechanism.”
The report also noted the growing importance of mobile as a means of enabling both domestic and international money transfer. However, many obstacles still exist in many markets, since service adoption is being inhibited by national regulatory requirements and by a lack of interoperability between services.
Juniper provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.