Technology | Media | Telecommunications

Wednesday, June 12, 2013

Mobile Payments Market to Reach $2 Trillion by 2017

Mobile payments, performed via a device such as a smartphone, is clearly a fast growing sector of the global communications and retail-related marketplace.

In the next two years many more consumers worldwide will be engaging in making mobile payments, according to the latest comprehensive market study by Portio Research.

At the end of 2012, there were 480 million mobile payment users worldwide -- this number is expected to cross the 1 billion users mark by the end of 2015.

Moreover, the figure is expected to continue increasing -- eventually reaching nearly 1.5 billion users by the end of 2017.

Mobile payment volumes -- that's the total value of goods and services and utility bill payments made through mobile devices annually -- reached $81.3 billion worldwide in 2011.

The growth rate enjoyed an increase of 148 percent over the course of 2012 -- to reach an estimated $202 billion.

Worldwide, the market is set to grow to reach $410 billion this year, in 2013, and then volumes are expected to grow at an impressive CAGR of 59 percent until 2017 -- breaching the $1 trillion mark by end of 2015, and the $2 trillion mark by the end of 2017.

Just imagine, that’s 1.5 billion consumers making $2 Trillion in mobile payments within 5 years time.

Near Field Communications (NFC) is also growing as more service providers adopt the technology.

167 million NFC-enabled handsets will ship in 2013. In 2017, there will be 1.67 billion NFC-enabled handsets in use around the world.

By 2017, almost 20 percent of worldwide mobile payments will be transacted using NFC technology. NFC payments will surpass $391 billion in volume in 2017.

There were 516 million people banking by mobile device at the end of 2012. That number will pass 1 billion in 2014, and go on to pass 1.5 billion in 2016.

International mobile remittance is another growing segment of the mobile commerce space. Worth almost $25 billion in 2012, the value of this market will surpass $50 billion in 2016, and $70 billion in 2017.