It used to be that the industry was thinking it’s the Near Field Communication (NFC) that is the leading contender among technologies to enable mobile payments. However, NFC has developed more slowly than anticipated, and will not offer viable large-scale mobile payment solutions for at least six years. In the meantime three existing technologies — SMS, mobile Internet and downloadable mobile applications –- have the potential to deliver what NFC cannot, at least so far.
According to ABI Research new study titled “Mobile Commerce and Payments,” the potential revenue in 2013 from mobile transactions using alternative (non-NFC) methods is about $18 billion, representing a significant opportunity for payment processors.
ABI Research examines the potential for mobile payments in four key vertical markets that will drive adoption: taxis, parking, movies, and Internet shopping. The research found that Internet shopping would account for almost three quarters of this mobile commerce revenue in 2013. A further 15% would come from parking, with the balance split about evenly between taxi fares and movie tickets.
“Companies already seizing this mobile payment opportunity include parking solutions provider Verrus, Bharti Airtel and movie theater operators in India, and notably eBay and Amazon – the world’s largest e-commerce merchants – which have enthusiastically embraced mobile transactions with very comprehensive offerings,” ABI Research’s senior analyst, Mark Beccue, added.
More information about ABI’s report is available from their website.