Mobile payment transaction value to cross $235 bn in 2013

by CXOtoday News Desk    Jun 04, 2013

Mobile Phone

The worldwide mobile payment transaction values will reach $235.4 billion in 2013, a 44 percent increase from 2012 values of $163.1 billion, according to Gartner, Inc. The number of mobile payment users worldwide will reach 245.2 million in 2013, up from 200.8 million in 2012.

“We expect global mobile transaction volume and value to average 35 percent annual growth between 2012 and 2017, and we are forecasting a market worth $721 billion with more than 450 million users by 2017,” said Sandy Shen, research director at Gartner. “Nevertheless, we have lowered the forecast of total transaction value for the forecast period due to lower-than-expected growth in 2012, especially in North America and Africa.”

Gartner forecasts that Near Field Communications(NFC) will account for only about 2 percent of total transaction value in 2013 and 5 percent of the total transaction value in 2017, although growth is expected to increase somewhat from 2016 when the penetration of NFC mobile phones increases.

Money transfers and merchandise purchases will account for about 71 percent and 21 percent of total transaction value in 2013. However, the mobile purchasing experience has not yet been optimised resulting in people are spending less via mobile devices than via online e-commerce services and at retail outlets. Merchandise purchases account for about 23 percent of the total value forecast for 2017.

Money transfer value continues to increase which makes money transfer a leading use case accounting for almost 69 percent of the total value in 2017. Bill payment value is expected to grow 44 percent accounting for five percent of the total value forecast for 2017. The consistency is due to higher value per transaction figures as more consumers in developed markets perform bill payments via mobile banking services.

From a regional perspective, Asia-Pacific’s transaction value is expected to grow 38 percent in 2013 to reach $74 billion. Developed markets such as South Korea and Singapore and developing markets such as India have shown a healthy growth healthy growth. As a result, in 2016, Asia/Pacific will overtake Africa to become the largest region by transaction value, reaching $165 billion. Africa’s transaction value is forecast to reach $160 billion in 2016.

North America’s transaction value is forecast to grow 53 percent in 2013, reaching $37 billion, up from $24 billion in 2012. Western Europe’s transaction value is expected to reach $29 billion in 2013, up from $19 billion in 2012. The region has been impacted by low adoption of NFC payment services although Western Europe market will experience steady growth through the forecast period.