1 in 5 mobile handsets will have mobile wallet functionality by 2018, against less than 1 in 10 in 2013, said Juniper Research.
Two distinct wallet models are driving mobile wallet growth. In emerging/developing markets, SVAs (Stored Value Accounts) are enabling first time financial access for unbanked individuals. There will be a surge in deployments across sub-Saharan Africa, developing Asia and Latin America.
Mobile wallet launches in North America and Western Europe are expected to feature contactless payment functionality.
The contactless payment market is likely to receive a boost both from the anticipated launch of an Apple iWallet later this year and through HCE (Host Card Emulation)-based NFC (Near Field Communications) services. HCE threatens operator role in contactless value chain, said Juniper Research.
More than 1 in 3 mobile wallets and over 50 percent of wallets in developed markets will feature contactless payment by 2018.
The mobile wallet profile would be bolstered through high-profile P2P (Person to Person) payment initiatives such as the UK’s Paym, which will be integrated into customers’ existing mobile banking or payment apps as an additional way to pay.
Start-ups including Venmo and Dwolla — targeting younger demographics – are driving the mobile P2P market in the US.
“While P2P mobile payment services have struggled to gain traction in developed markets, financial institutions are keen to commit to them as they can serve as an attractive value-add to consumers in an increasingly cashless society,” said Windsor Holden of Juniper Research.
The report said China’s Alipay now has more than 100 million wallet users.
TelecomLead News Team
