Mobile Money:The $630 billion opportunity
Mobile payments/Mobile banking has been in vogue for some time now. There is lot of promise that this mode of mobile transaction has shown for taking banking to the rural geographies in Africa and Asia. This is the next big billion dollar opportunity. Here’s a continuation of the mobile banking/payments story.
A new report by Juniper Research estimates the total value of mobile payments for digital and physical goods, money transfers and NFC (Near Field Communications) transactions will reach almost $630bn by 2014, up from $170bn this year, representing the gross value of all purchases or the value of money being transferred. This represents a 38% CAGR opportunity over the next 4 years. Read an earlier estimate on growth here
SMS ticketing schemes such as those offered by OBB Austrian Railways and Skane Traffic in Sweden have been important developments in the mobile payments market. It also revealed that shopping by mobile at stores such as Amazon Mobile is also tipped for significant expansion over the next five years.
The evolution of Mobile payments will be such that whilst the digital goods segment will account for nearly half of the market in 2010, the emerging segments such as physical goods payments, NFC and money transfers will impact the market rapidly. By 2014 for example we forecast that physical goods mobile payments market will be worth $100bn and that in developing markets SMS driven money transfer services are the main driver, increasing at a rate of 30% per annum.