According to Juniper Research’s (News - Alert) new Mobile Payments Study, they found that Mobile money transfers and contactless NFC (Near Field Communications) will account for 50% of the overall mobile payment market globally, based on the gross transaction values, by 2013.

 

The Juniper report found that the mobile payments market, which is dominated today by purchases such as ringtones, music, and games, will, in future, be driven by subscribers transferring money and using NFC features on their handsets to make purchases. This will drive the overall mobile payments market to grow by a factor of ten between now and 2013.

 

Near Field Communication, is a short-range high frequency wireless communication technology that enables the exchange of data between devices over short distances. The technology is an extension of the ISO 14443 proximity-card standard that combines a smartcard and a reader into a single device.

 

Report author Howard Wilcox explained: "We see significant opportunities for new services making it easier for the 'underbanked' population and migrant workers to make remittances, using their mobile phones as mobile wallets: the services already in operation are seeing rapid growth." Wilcox added that mobile wallets will incorporate NFC which will enable people to use their mobile phones to pay for small value items such as refreshments and magazines.

 

The top three regions will be the Far East & China, Western Europe and North America. Together these three sectors will account for over 70% of mobile money payments on a gross transaction basis by 2013. However, there will be some obstacles to overcome before the market reaches its tipping point, including NFC handset availability, workable business models and financial legislation.

 

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.