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Tag: payments

  • Number of Worldwide Mobile Payment Users to Reach 108.6 Million in 2010

    The number of mobile payment users worldwide will exceed 108.6 million in 2010, a 54.5 percent increase from 2009, when there were 70.2 million users, according to Gartner. Mobile payment users will represent 2.1 percent of all mobile users in 2010.

    Gartner report "Market Insight: The Outlook on Mobile Payment" finds that Asia/Pacific is the leading region with mobile payment users. In Asia/Pacific, mobile payment users will surpass 62.8 million in 2010, and represent 2.6 percent of all mobile users.

    In Europe, the Middle East and Africa (EMEA), mobile payment users will total 27.1 million and represent 2.1 percent of all mobile users in the region. In North America, mobile payment users will number 3.5 million and represent 1.1 percent of all mobile users in the region.

    "We continue to see strong growth in developing markets in Asia, Eastern Europe, the Middle East and Africa for mobile payment, while adoption in North America and Western Europe lags behind due to the plentiful choices of payment instruments that consumers have," said Sandy Shen, research director at Gartner. "Developing markets have found the right formula for mobile money services — functions that users want and an ecosystem that can sustain the service."

    Shen said that the strong demand for mobile payment in developing markets is being driven by the unbanked and underbanked populations that do not have ready access to the banking infrastructure or PC, positioning mobile as the natural choice of access platform. “At the same time, regulators in early-adopter markets are tightening up policies to provide better user protection and fight against unlawful financial activities relating to money transfer,” she said.

    The report also shows that Short Message Service (SMS) remains the dominant mobile payment technology. Its ubiquity and ease of use makes it the technology of choice, not only for consumers in developing markets, but also for those in developed markets. Wireless Application Protocol/Web can support either downloadable clients or mobile browsers. It is more frequently used by consumers in developed markets due to the higher penetration of data-capable phones and active data plans.

    According to Gartner, many financial institutions have failed to see the business case of Near Field Communication (NFC) payment, in particular, which offers similar functionality to contactless cards but with the added complexity of dealing with mobile carriers and other ecosystem partners.

    Shen urged service providers in developing markets to investigate service interoperability to speed market uptake and foster healthy competition. She said that solution providers should ensure platform flexibility so that platforms can work with both the bank’s and mobile carrier’s systems, and so that it can be readily customized for local deployments.

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  • PayPal App Introduced To Android


    Making payments just got a little easier for owners of an Android phone with the news that PayPal has introduced its app in the Android Market.

    The e-commerce business says that the app gives users easy access to many of its popular features.

    The eBay subsidiary also stresses that for those worried about security, it uses the same technology and safeguards that they have for the web client.

    Some of the features include:

    • Direct integration with the contact list – Users select a name from contacts to make a payment
    • Recent history – A smartphone can be used to look at transactions over the last couple of months
    • Balance checks – balances in any of the currencies held can be shown

  • Payments made via mobile phone for goods and services will exceed US$300bn globally by 2013






    The value of payments made using mobile phones for everything from music, tickets and games to gifts will increase five-fold over the next five years.
    This is one of the forecasts made by Juniper Research in a region by region analysis which explores how the mobile phone is developing into a payment tool that will be used by more and more people, more and more often in future.
    Not surprisingly, the report concludes that there is a significant opportunity for mobile payment services, systems, software and supporting services to underpin the processing of the spiralling value of payment transactions by 2013.
    Howard Wilcox , the report’s author, noted that retailers need to move quickly to exploit the opportunity presented, and ensure that they maintain ease of use for their customers who are already familiar with web shopping from their PCs.
    “Merchants in North America and Western Europe are just starting to realise the potential of a mobile web presence as a fourth channel to market,” he added.
    “Retailers should be evaluating the benefits of the mobile web, and be mindful of the success of regular ecommerce sites in generating sales.”
    The findings come as the GSMA, the mobile industry’s global trade body, and the European Payments Council, which represents 8,000 banks, announce plans to work together to accelerate the deployment of services that enable consumers to pay for goods and services using their mobile phones.
    Other highlights from the Juniper Research report include:
    * The ticketing segment will be driven by consumer usage on rail, air and bus networks as well as sports and entertainment events. This will represent over 40 per cent of the global transaction value by 2013
    * The top 2 regions (Far East and W. Europe) will represent over 60 per cent of the US$300bn pa global mobile payment gross transaction value by 2013 for digital and physical goods