Total value of global financial transactions through mobile phones is expected to grow by 42 per cent annually to touch USD 617 billion by 2016,a study by research firm Gartner said today.
“We expect global mobile transaction volume and value to average 42 per cent annual growth between 2011 and 2016,and we are forecasting a market worth USD 617 billion with 448 million users by 2016,” Gartner research director Sandy Shen said in a statement.
Shen added that this will bring opportunities for service and solution providers,who will need to cater to the local demand patterns to customise their offerings.
The worldwide mobile payment transaction values will surpass USD 171.5 billion with 212.2 million users in 2012,Gartner said,adding the transaction values stood at USD 105.9 billion with 160.5 million users in 2011.
The research firm predicted that mobile payments market will experience fragmented services and solutions for the next two years and technology providers will have to cater their solutions to the local market.
“There will be a few global players that have the scale and resources to serve large customers and the mass market whose requirements can be readily satisfied by standard solutions,” Shen said.
However,there will always be segments that cannot be sufficiently served by the global players.
“The demand of these segments can only be satisfied by specialised or local players who can better understand the segment and have specific solutions to meet the unique challenges,” Shen added.
SMS remains the dominant access technology in developing markets because of the constraints of mobile devices and the ubiquity of SMS. However,in North America and Western Europe,where mobile internet is commonly accessed on mobile devices,wireless application protocol (WAP) is the preferred access technology.
In developing markets,money transfer and airtime top-ups will account for most transaction volume,while in North America and Western Europe merchandise purchases will drive transactions,the study added.
“Money transfers will account for the largest portion of the transaction value (in developing countries) because of the demand for secure and efficient ways of storing and transferring money,” the study said.