Mobile payment transactions to hit $22bn by 2011

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Users' fondness for paying for things using their mobiles shows no sign of letting up as the latest forecast from Juniper Research suggests that less than five years' from now some 204 million mobile phone users will be using mobile payments to carry out transactions totaling almost $22 billion.

The commercialisation of Near Field Communications (NFC)-based mPayments in 2009 and the widespread availability of associated devices, coupled with person to person (P2P) fund transfers and mobile payments in the developing world, will all help to create this 2011 market boom claims the analyst.

More and more companies, both in the mobile and financial arena, are waking up to the potential of mobile payments and, as Juniper points out, the ecosystem now encourages major stakeholders to work together rather than working in isolation on something that may kill competitors.

Industry bodies, like the GSMA with its pay-buy mobileinitiative, are also putting their weight behind mobile payments.

However, despite the obvious benefits on offer for both businesses and consumers alike Juniper warns that there is still a long journey ahead for those involved. Although most of the technological infrastructure to accelerate and support mobility's time in the limelight is ready, willing and able, there is still work to be done in resolving issues surrounding the business model and revenue share, it claims.

"The technology is available now to enable secure and fast payments to be initiated on the mobile phone," Alan Goode, the author of Juniper's 'Mobile Payment Strategies & Markets 2007-2011' report.

"The business model stills needs some work but there are positive signals emanating from the industry that will create considerable revenue for all parts of the ecosystem. I am cautiously optimistic for the future success of mPayments."

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