Worldwide mobile payment transaction values will rocket this year according to Gartner, which predicts these transactions will hit $235.4 billion in 2013 – a 44 percent boost from $163.1 billion in 2012.
The number of mobile payment users worldwide will reach 245.2 million in 2013, up from 200.8 million in 2012, according to the research.
Sandy Shen, research director, Gartner, said the company expected global mobile transaction volume and value to average 35 percent annual growth between 2012 and 2017. He added the company was forecasting a market worth $721 billion with more than 450 million users by 2017.
Despite this, the company had lowered the forecast of total transaction value “due to lower-than-expected growth in 2012, especially in North America and Africa”.
Near Field Communications’ (NFC’s) transaction value has also been slashed with a reduction of 40 percent throughout the forecast period. Gartner said this is thanks to disappointing adoption of NFC technology in all markets in 2012, and the fact that some high-profile services, such as Google Wallet and Isis, struggled to gain traction.
Gartner predicts NFC will account for just two percent of total transaction value in 2013 and five percent of the total transaction value in 2017. However, growth is expected to increase from 2016 when the penetration of NFC mobile phones and contactless readers increases.
Money transfers and merchandise purchases will account for about 71 percent and 21 percent of total transaction value in 2013, respectively, making them by far the largest contributors. Worldwide, people are not purchasing as much because the buying experience on mobile devices has yet to be fully optimised, though the economic situation must count for something too.
People are spending less using mobile devices than through online e-commerce services and at retail outlets. Merchandise purchases account for about 23 percent of the total value forecast for 2017, Gartner said.
Bill payment value should grow 44 percent in 2013 and maintain consistent growth through the forecast period. Gartner said this is thanks to higher value per transaction figures, as more consumers in developed markets performed bill payments using mobile banking services – along with consumers in emerging markets who are transacting at higher values than originally forecast.
Western Europe’s transaction value is expected to reach $29 billion in 2013, up from $19 billion in 2012.
