Mobile Payments Projected to Double by 2017
Mobile payments taking place throughout the world are expected to reach $1 trillion in 2017, twice the current transaction volume of $500 million. According to the research from International Data Corporation, the growth is largely due to an increase in mobile commerce in the Asia/Pacific region.
The research found smartphone adoption is growing at a faster rate in the Asia Pacific market than traditional banking and card adoption. As a result, mobile commerce and mobile payments are becoming increasingly popular in the region.
“Recent focus on financial inclusion policies in various countries has given a boost to connecting the unbanked,” said Shiv Putcha, Associate Research Director for IDC Asia/Pacific. “This phenomenon, coupled with the innovation of semi-closed wallet schemes linked to bank accounts, has given a major boost to mobile payments in Asia-Pacific.”
The expansion of the mobile payments market varies greatly throughout the region, with some countries showing a higher interest in Near Field Communications devices than others. Putcha describes this as a “duality between the mature Asian markets like Australia, Hong Kong, and Singapore versus the emerging Asian economies like China, India, and Indonesia.”
Mature Asian economies are expected to act as “card payment leaders” in the coming years, using mobile payments as a matter of convenience over traditional card swipes. Other markets in the Asia Pacific region will utilize mobile payments to boost their GDP, leading to the development of mCommerce retailers, similar to China’s Alibaba.
With the number of mobile wallets expected to be released by the end of this year, consumers will have even more opportunities to take advantage of mobile payment solutions.