|[November 14, 2012]
Worldwide Purchase Volume Over Mobile Devices Will Exceed $1 Trillion by 2017, According to IDC Financial Insights
FRAMINGHAM, Mass. --(Business Wire)--
Financial Insights today announced a new report, Technology
Selection: Worldwide Mobile Payments 2012-2017 Forecast (Doc
#FIN237814), which presents a worldwide forecast of consumer and
business spending over mobile networks from 2012 to 2017. According to
the new research, by 2017, worldwide purchase volume over mobile devices
will exceed $1 trillion. Most of this volume will be in the form of
mobile commerce, which includes digital media consumed on the device as
well as ecommerce through a mobile Web browser. Although NFC payments
are still limited, IDC (News - Alert) Financial Insights forecasts rapid growth driven
by handset and point-of-sale terminal upgrades. While the resulting
forecast is large in dollar terms, it is a tiny fraction (just above
2.5% in 2017) of the total amount of worldwide commerce that is
theoretically addressable by mobile payments.
Key highlights from the report include the following:
Most of the dollar volume will be in the form of ecommerce spending
done over mobile devices.
Proximity payments will ride upgrades in point-of-sale and mobile
device technology to become the second-largest category of mobile
payments spending, about evenly divided between the two methods.
Person-to-person or point-to-point (P2P) fund transfers will be a
distant third, mainly due to a lack of common standards for sending
money across borders using mobile devices as well as a lack of
locations for adding cash to and withdrawing cash from the system.
The worldwide forecast is focused on consumer and business spending over
mobile networks from 2012 to 2017, not on spending by service providers
on technology to enable such services. Instead, it includes purchases of
digital and physical products and services as well as direct fund
transfers where no product or servie is exchanged. IDC Financial
Insights' approach to forecasting the growth of mobile payments has been
based on the assumption that most mobile payments actually substitute
for existing payment methods.
There are substantial uncertainties in the forecast, depending on
whether financial institutions, mobile telecommunications operators, and
retailers can agree on common standards for payments. If each sector
insists on going its own way, mobile payments growth will underperform
the forecast; if the market consolidates into a few dominant schemes for
each country, then mobile payments could be much larger.
Impact on Financial Institutions
The outlook for financial institutions is good, in that the vast
majority of mobile payments volume will be driven by traditional card
products, either through mCommerce or through NFC. As such, financial
institutions should view mobile payments as an opportunity to leverage
the information they possess on their customers' shopping habits and
demographic characteristics. Mobile operators and device manufacturers
have given banks unprecedented access to their customers at all times
and in all places. To be successful, financial institutions should
implement targeted marketing and reward programs as a supplement to
their regular loyalty programs as customer loyalty will be to the
company that provides them with the best value in the form of savings
and information. Second, financial institutions should facilitate the
incorporation of their cards into NFC and mobile wallets to capitalize
on the growth of mCommerce and NFC proximity payments.
According to Aaron
McPherson, practice director, Worldwide
Payment Strategies at IDC Financial Insights and the lead author of
the report, "The growing prevalence of smartphones is enabling a variety
of mobile payment methods, which combined are becoming a significant
share of global commerce. We expect growth rates to continue to
accelerate as consumers and retailers become more comfortable with the
For additional information about this study, or to arrange a one-on-one
briefing with Aaron McPherson please contact Sarah Murray at
781-378-2674 or firstname.lastname@example.org.
Reports are available to qualified members of the media. For information
on purchasing reports, contact email@example.com;
reporters should email firstname.lastname@example.org.
About IDC Financial Insights
IDC Financial Insights assists financial service businesses and IT
leaders, as well as the suppliers who serve them, in making more
effective technology decisions by providing accurate, timely, and
insightful fact-based research and consulting services. Staffed by
senior analysts with decades of industry experience, our global research
analyzes and advises on business and technology issues facing the
banking, insurance, and securities and investments industries.
International Data Corporation (IDC)
is the premier global provider of market intelligence, advisory
services, and events for the information technology market. IDC is a
subsidiary of IDG, the world's leading technology, media, research, and
events company. For more information, please visit www.idc-fi.com,
email email@example.com, or call
508-620-5533. Visit the IDC Financial Insights Community at http://idc-insights-community.com/financial.
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