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Home >
Mobile Banking and Payments – 2nd Edition
Market Study
Published: April 2010
Pages: 130
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 899.00 Buy Now!
Research from: Berg Insight
Sector: Mobile Content & Apps
Mobile financial services include a range of various applications and usage areas. Most of
these services could be classified as mobile payments, mobile money transfer or mobile
banking. The mobile handset is now established as a means for payments in certain niches
such as digital services and ticketing using premium SMS. Berg Insight believes that this type
of applications will continue to grow with WAP billing and credit card payments gradually
increasing their market shares. Mobile money transfer is expected to achieve a market
breakthrough in the coming years, generating revenues in the range of US$ 1.2–6.2 billion in
2015. Berg Insight also anticipates that mobile banking will become highly popular among
existing Internet bank users and also become the main digital channel for retail banks in
emerging markets. As a result the number of active users of mobile banking and related
financial services worldwide is forecasted to increase from 55 million in 2009 to 894 million in
2015.
Mobile payments refer to the utilization of mobile handsets for making purchases.
Traditionally, mobile payments have focused on purchasing mobile content, but over time the
application area has diversified to include goods and services. Initially, premium SMS was the
vehicle for payments as it offered unmatched reach and a simple process familiar to the vast
majority of the subscribers. As the number of people using their phones for data services
increases a range of alternative methods opens up. Today, many content providers are
moving over to WAP billing, which offers practical advantages and higher payout rates.
Furthermore, the mobile devices are converging with PCs and a natural step is to utilize the
payment methods already established on the Internet, which offer better payout rates and do
not rely on operators. These methods are primarily transactional networks and credit cards. In
a long term perspective the mobile handset has also been identified as a vehicle for delivering
contactless payments using NFC technology and we are starting to see commercial roll-outs
in a number of markets.
The money transfer market has grown considerably over the past years, however the current
global economic downturn has constrained the remittance volumes temporarily. Still
remittance is a growing market in a long term perspective, driven by a number of factors such
as migration, globalization and urbanization. Many mobile banking and payment providers
are glancing at the US$ 600 billion flowing every year to developing countries, which
generates about US$ 60 billion in remittance service revenues. There are over 4 billion mobile
subscribers in the world and extensive networks of airtime agents have been built up giving
the mobile media unmatched reach and it has been identified as a vehicle for remittance.
Today, there are a number of international mobile remittance services available in the US,
Europe and the Gulf states. Yet, money transfer networks such as Western Union and
informal value transfer systems still dominate the market.
Mobile banking is an evolution of telephone and Internet banking that provides mobile
subscribers with access to standard banking services such as account information and
payments. There is a major difference between mobile banking for the banked population in
the US and Europe compared to the unbanked population in Africa, Asia and Latin America.
The services differ significantly as they fill different needs and builds upon different business
models. In Europe the service is at the initial stage and is seen as a convenience service that
does not generate additional revenues, but more a service to build value-added applications
upon. In emerging markets the service targets unbanked or under-banked people that do not
have access to other official banking systems.
There is a wide range of players of every size in the mobile banking and payments industry.
Since the different services are strongly interconnected most firms dedicated to developing
platforms for mobile commerce offer a number of services. Many platforms comprise for
example banking services, over the air payments, proximity payments (NFC), remittance,
airtime top-up as well as other functions such as marketing and vouchers. In addition to these
players there are also large IT firms with the capabilities of delivering tailored solutions to
operators or financial institutions that integrate with the current systems. Large banks such as
Citigroup or Bank of America have the competence to develop mobile banking and payment
schemes in-house. There have also been initiatives from the international card payment
giants Visa and MasterCard.
these services could be classified as mobile payments, mobile money transfer or mobile
banking. The mobile handset is now established as a means for payments in certain niches
such as digital services and ticketing using premium SMS. Berg Insight believes that this type
of applications will continue to grow with WAP billing and credit card payments gradually
increasing their market shares. Mobile money transfer is expected to achieve a market
breakthrough in the coming years, generating revenues in the range of US$ 1.2–6.2 billion in
2015. Berg Insight also anticipates that mobile banking will become highly popular among
existing Internet bank users and also become the main digital channel for retail banks in
emerging markets. As a result the number of active users of mobile banking and related
financial services worldwide is forecasted to increase from 55 million in 2009 to 894 million in
2015.
Mobile payments refer to the utilization of mobile handsets for making purchases.
Traditionally, mobile payments have focused on purchasing mobile content, but over time the
application area has diversified to include goods and services. Initially, premium SMS was the
vehicle for payments as it offered unmatched reach and a simple process familiar to the vast
majority of the subscribers. As the number of people using their phones for data services
increases a range of alternative methods opens up. Today, many content providers are
moving over to WAP billing, which offers practical advantages and higher payout rates.
Furthermore, the mobile devices are converging with PCs and a natural step is to utilize the
payment methods already established on the Internet, which offer better payout rates and do
not rely on operators. These methods are primarily transactional networks and credit cards. In
a long term perspective the mobile handset has also been identified as a vehicle for delivering
contactless payments using NFC technology and we are starting to see commercial roll-outs
in a number of markets.
The money transfer market has grown considerably over the past years, however the current
global economic downturn has constrained the remittance volumes temporarily. Still
remittance is a growing market in a long term perspective, driven by a number of factors such
as migration, globalization and urbanization. Many mobile banking and payment providers
are glancing at the US$ 600 billion flowing every year to developing countries, which
generates about US$ 60 billion in remittance service revenues. There are over 4 billion mobile
subscribers in the world and extensive networks of airtime agents have been built up giving
the mobile media unmatched reach and it has been identified as a vehicle for remittance.
Today, there are a number of international mobile remittance services available in the US,
Europe and the Gulf states. Yet, money transfer networks such as Western Union and
informal value transfer systems still dominate the market.
Mobile banking is an evolution of telephone and Internet banking that provides mobile
subscribers with access to standard banking services such as account information and
payments. There is a major difference between mobile banking for the banked population in
the US and Europe compared to the unbanked population in Africa, Asia and Latin America.
The services differ significantly as they fill different needs and builds upon different business
models. In Europe the service is at the initial stage and is seen as a convenience service that
does not generate additional revenues, but more a service to build value-added applications
upon. In emerging markets the service targets unbanked or under-banked people that do not
have access to other official banking systems.
There is a wide range of players of every size in the mobile banking and payments industry.
Since the different services are strongly interconnected most firms dedicated to developing
platforms for mobile commerce offer a number of services. Many platforms comprise for
example banking services, over the air payments, proximity payments (NFC), remittance,
airtime top-up as well as other functions such as marketing and vouchers. In addition to these
players there are also large IT firms with the capabilities of delivering tailored solutions to
operators or financial institutions that integrate with the current systems. Large banks such as
Citigroup or Bank of America have the competence to develop mobile banking and payment
schemes in-house. There have also been initiatives from the international card payment
giants Visa and MasterCard.