Mobile Payments to rise from $155M in 2005 to $10B total revenue by 2010, says Juniper Research
Increasing consumer adoption of m-payment schemes will drive growth
Mobile payments are set to rise to $10 billion in total revenue by 2010, thanks to the entrance of new players offering m-payment schemes and subsequent consumer demand, according to Alan Goode, senior analyst and author with Juniper Research. And following the announcement of the expansion of PayPal services into the micro mPayment and mRetail sector, this will only serve to facilitate a fundamental shift in global consumer payment services now and into the future.
The new prediction by Juniper Research follows media reports that PayPal has decided to enter the fray of mobile payments, offering a new texting service called PayPal Mobile. This new service will offer its users the freedom of sending money, donating to charities and purchasing items via a mobile payments platform.
Juniper’s forecasting of the advancing adoption of mobile payment services – with the total number of m-payments forecast to rise from 78m to 175m in the coming year alone – can be seen as a realizing trend, with Paypal’s statement of intention. This mirrors the trend seen with the implementation of card based vending solutions - a method that normally increases the average transaction value.
Certainly with their i-mode FeliCa service, transaction data captured by NTT DoCoMo in Japan suggests the average transaction value for mobile payments will surpass the traditional sub $5 micro-payment seen with cash-based payments.
Author and analyst of the latest Juniper report into mobile commerce strategies, Alan Goode states that: “cashless purchases made using NTT Docomo’s i-mode Felica scheme are currently averaging $6.20, about 25% more than purchases made with prepaid e-money cards and cash”.
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