Skip to main content

Growing World Market for Mobile Payment Services

Mobile phone network operators -- either independently or in partnership with banks, other financial institutions and mobile payment service providers -- are developing platforms and applications to offer mobile payment services.

Such initiatives have seen the worldwide mobile payments market evolve significantly in recent years, with mobile handsets now readily used for a variety of payment-related transactions.

According to the latest market study by Portio Research, the worldwide mobile payments volume -- denoting the face value of purchases and transactions through mobile handsets -- stood at $68.7 billion in 2009, up from $45.6 billion in 2008, and will surge nine-fold to reach $633.4 billion by end-2014.

In 2009, there were 81.3 million mobile payment users worldwide and this number is forecast to grow over six-fold to reach nearly 490 million by the end of 2014, seeing the worldwide penetration of mobile payment users increasing over four-fold to reach almost 8 percent by end-2014.

Mobile payment services present huge potential for stakeholders to substantially increase their revenues and user bases. Obstacles to the adoption of mobile payments have included a lack of scalable and viable business models, lack of standardization, and fragmented commercial efforts.

However, according to Portio's assessment, the success of mobile payment business models in key markets and the uptake of services therein has revived the interest of potential stakeholders in deploying the next phase of mobile payment services worldwide.

Popular posts from this blog

The Subscription Economy Churn Challenge

The subscription business model has been one of the big success stories of the Internet era. From Netflix to Microsoft 365, more and more companies are moving towards recurring revenue streams by having customers pay for access rather than product ownership. The subscription economy cuts across many industries -- such as streaming services, software, media, consumer products, and even transportation with the rise of mobility-as-a-service. A new market study by Juniper Research highlights the central challenge facing subscription businesses -- reducing customer churn to build a loyal subscriber installed base. Subscription Model Market Development The Juniper market study provides an in-depth analysis of the subscription business model market landscape and associated customer retention strategies. A key finding is that impending government regulations will make it easier for customers to cancel subscriptions, likely leading to increased voluntary churn rates. The study report cites the