London-Mobile payments revenues are set to grow dramatically to USD20 billion
in 2005 worldwide, according to a new strategic report from ARC Group. This figure
represents an annual growth rate of over 100%, and is mainly derived from new
types of transaction such as prepaid top up via automatic teller machines (ATMs).
London-Mobile payments revenues are set to grow dramatically to USD20 billion
in 2005worldwide, according to a new strategic report from ARC Group. This figure
represents anannual growth rate of over 100%, and is mainly derived from new
types of transaction such as prepaid top up via automatic teller machines (ATMs).Current
forms of mobile payments include premium SMS messages, which can be reverse
billed or easily charged to subscribers' accounts along with airtime. These
will be followed by prepaid top up services, either direct from linked accounts
or from ATM networks. Virtual payments are the next generation of mobile payments,
and will beused for a wide variety of digital content which is purchased remotely
online. Finally,as the retail infrastructure is built out, local point of sale
payments (proximity payments) will begin to develop, allowing mobile users to
pay for goods and services in retail outletsand at vending machines.
The newer generation of ATMs and vending machines will increasingly be able
tocommunicate with mobile phones, giving consumers the opportunity to gain access
to virtual cash and to build up loyalty bonus points. This will mean a repositioning
of the players in the value chain, with mobile network operators partnering
with credit companies and banks to offer an integrated package of content and
payment facilities.
Richard Jesty, lead author of the report says: "These new payment trends
are already happening in the Asia Pacific region. We're seeing vending machines
that are able to talk to mobile phones and provide not just canned drinks but
personalised city guides and entertainment information. Mobile ticketing projects
are also underway in Japan for example which will enable travellers to use their
phones as season tickets with built in credit facilities."
Longer term, ARC Group sees the option of being able to use a virtual credit
card asoffering significant potential in the macropayments sector (that is for
transactions where the value is over USD15). This may favour the larger credit
card operators, which already have international brands and technical infrastructures
and are moving in the direction of multi-access payment systems. Both Visa and
Mastercard are working with the network operators and banks to test a number
of mobile payment methods, ranging from a point of sale retail system to a server-based
m wallet. Combined with new methods of ensuringthat remote transactions are
secure, these mobile payment systems will enable virtual debit or credit cards
to be used for local retail payments as well as online purchases on the internet.In
both the micro and macropayments sectors, new business models are key to growing
the market for mobile services by offering alternative ways for consumers to
pay easily, and for value chain players to share revenues profitably.
Notes to editors:
ARC Group ( www.arcgroup.com) publishes in-depth strategic reports and provides
consultancy on wireless internet, wireless technologies and infrastructure,
digital broadcasting, broadband access, telematics and optical communications.
For more information about this report, please contact:
Chrystelle Chalvin, Sales & Marketing Manager, ARC group
Tel: +44 1932 266 917
chrystelle.chalvin@arcgroup.com
http://www.arcgroup.com
