According to Gartner, the global mobile payment space will grow at a compound annual growth rate of 44 per cent to reach $235.4 billion in 2013.
The global mobile payment market stood at $163.1 billion in 2012. Further, the number of customers opting for mobile payment will increase from 200.8 million in 2012 to 245.2 million in 2013. By 2017, the mobile payment market will be valued at $721 billion, with over 450 million users.
Gartner forecasts that near field communications (NFC) technology will account for only about 2 per cent of the total transaction value in 2013 and 5 per cent of the total transaction value in 2017. Money transfers and merchandise purchases will account for about 71 per cent and 21 per cent of total transaction value in 2013 respectively. Merchandise purchases will account for about 23 per cent of the total value forecast for 2017.
The research firm has stated that customers are spending less via mobile devices than via online e-commerce services and at retail outlets.
Region-wise, mobile transactions in the Asia Pacific region are expected to increase by 38 per cent in 2013 to reach $74 billion. Deployments in developed markets such as South Korea and Singapore and in developing markets such as India are expected drive growth in this region. The research firm estimates that in 2016, the Asia Pacific region will overtake Africa to become the largest region supporting payments through mobile. The mobile payment market in the region will reach $165 billion.
Africa?s mobile transaction value is forecast to reach $160 billion in 2016. While Africa will still experience strong growth through the forecast period, companies in the region are still looking for the most suitable business model for mobile money in their local markets.
In North America, the global mobile transaction market is expected to grow by 53 per cent in 2013, reaching $37 billion, up from $24 billion in 2012. The region has been impacted by low adoption of NFC payment services and various merchants launching mobile applications in a copycat fashion without a clear business strategy.
Gartner estimates that the global mobile transaction market in Western Europe will increase from $19 billion in 2012 to $29 billion. The growth in the market will be impacted by a reduction in the average number of transactions per user in 2012.
