Massive mobile payments growth by 2015
New reports by the U.K.'s Juniper Research Ltd. predict the use of smart phones to pay for physical and digital goods, such as movies, magazines, books, newspapers and transportation, will grow 40 percent worldwide by 2015, accounting for a $2.5 billion market. Mobile payments are projected to total $1.8 billion this year.
"The mobile payments sector offers substantial growth opportunities, [but] it needs to be seen by innovative players as a platform from which to develop new value-added applications and services such as personalized mobile coupons, loyalty schemes and novel, augmented reality offerings," Juniper Senior Analyst David Snow said in his analysis of the study.
Juniper's Mobile Payments for Digital & Physical Goods report, released in June 2011, forecasted that the Far East and China will account for 30 percent of the predicted mobile payments increase and India will add 400 million mobile payment users by 2015.
The report warned fraud in mobile payments is increasing and may become "a key issue." Juniper tracked 17 mobile payment vendors in its report and provided five years of data for mobile payments. Data trends pictured in the report include subscriber acquisition, transaction sizes and volumes.
A second study released by Juniper in July 2011 calculated mobile payments, money transfers and near field communication (NFC) technology-enabled transactions will combine to create a $670 billion industry by 2015, up from this year's projected $240 billion.
The Mobile Payments Strategies report noted 20 countries are allowing NFC service startups over the next year and a half. This is expected to push the total mobile payments market to $50 billion by 2014. The growth in the mobile payments market will be driven by consumers in the Far East and China, Western Europe and North America. These areas already make up about 75 percent of said market.
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