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Mobile NFC Payments and Banking Market

One day the mobile phone could replace other forms of payment, by storing electronic cash and enabling convenient electronic transactions. Yet so far there's been little evidence that the consumer has embraced this new paradigm, despite the availability of mobile payment and banking services in most markets worldwide.

However, according to Informa Telecoms and Media this day is getting closer. They forecast that in 2013 almost 300 billion transactions, worth more than $860 billion, will be conducted using a mobile phone -- a twelve-fold increase in gross global transaction values in just five years.

"The mobile payments and banking market has evolved considerably over the last two years. Major industry initiatives led by the GSMA and significant commitments to the market from major financial services and telecoms leaders have changed the dynamics of this market," says John Darnbrough, Associate, Informa Telecoms & Media.

At last there is real evidence of demand for these services, some from the unlikeliest of places such as the emerging markets of Africa and Asia. The prospects for growth and the emergence of new opportunities in mobile financial services are encouraging more players to enter the market.

Informa predicts that by 2013, over 445 million mobile subscribers will be regularly using their mobile phone to purchase physical goods and services remotely. Furthermore, Informa estimates that of the total value of mobile payments and transactions in 2008 -- around$71 billion -- approximately a third was spent on purchases of mobile digital content such as ringtones, games and music tracks.

However, by 2013 over 95 percent of mobile transactions will be for physical goods and services.

Despite its promise, the mobile NFC market will be held back by the lack of availability of NFC enabled handsets and uncertainties regarding the business model and business case for mobile NFC. Nevertheless, Informa forecasts that in 2013 approximately 11 percent of all mobile handsets shipped will be NFC enabled and that over 178 million mobile subscribers will be regularly using mobile NFC phones to buy physical goods and services, such as tickets, locally at the point of sale.

Informa also forecasts that by 2013 there will be 977 million users of mobile banking services worldwide a dramatic increase from approximately 67 million at the end of 2008.

By 2013 Informa forecasts that almost 424 million consumers will be sending over $157 billion of personal funds via mobile domestically whilst a further 73 million will be sending $48 billion of funds via mobile internationally.

Informa predicts that if the key players collaborate effectively the mobile payments and banking market offers a shared annual revenue opportunity of over $10 billion in five years time. The biggest revenue opportunity is expected from mBanking services, which Informa predicts will be worth $5.5 billion in 2013.

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