LONDON, Nov. 12 /PRNewswire/ -- Both mobile operators and banks are turning to
mobile transactions to foster loyalty and drive revenues. Ranging from
vouchers and bank balance checks to remittance and top-up payments, mobile
money is finally coming to fruition in both the banked and unbanked sector,
while near field communication (NFC) promises to be the pot of gold at the end
of the rainbow.
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New analysis from Frost & Sullivan (http://www.wireless.frost.com), Money in
Mobile -- European Transactions, estimates the mobile money market in Western
Europe to grow to 4 to 5 billion Euros by 2013. The research examines both the
banked and unbanked sectors and segments mobile money into four areas, namely:
non-NFC based m-payments, mobile banking, remittance, and NFC based
m-payments.
"Solutions targeting the developed world require a long-term strategy, even as
providers will need to find a viable solution for retail payments (B2C),"
notes Frost & Sullivan Principal Analyst Sharifah Amirah. "NFC is potentially
a solution, but hardware costs and mass market availability still remain key
challenges for its widespread adoption. In the mean time, SMS-based services
will drive growth."
Much of the success to date has been primarily on servicing the unbanked
mobile subscriber. The global ratio of mobile phone users to bank accounts is
about 4:1.5. Remittances between specific markets, for example,
Philippines-Hong Kong and India-UAE, have also been very popular.
Currently, in the developed world, it is about getting users comfortable --
such as, for instance, checking balances and portfolio performances. Operators
and banks alike are still building consumer trust in terms of transferring
money and paying bills over the phone.
"Transaction costs and ease-of-use will drive money transfers and P2P
transactions," adds Amirah. "The gap between financial institutions and mobile
operators is beginning to narrow, but there is still need for greater
education both on the supply and demand side."
Several trials and small-scale deployments can be seen in key Eastern European
markets. The high number of banks in the region foresees interoperability as a
key challenge.
"Growth will be driven by high frequency and low-value transactions supported
by widespread, cashless transaction systems that are cost-effective and
secure," observes Amirah. "Increased cross border cooperation will drive the
high growing remittance transactions."
However, five primary concerns remain. These include security issues, the lack
of regulation on mobile transactions, quality of service, limited
collaboration between different participants and the high cost of solutions.
There is great risk in the industry in the context of point solutions, in
particular, not being scalable/suitable for wide scale deployments.
Success stories to date reveal that no one solution fits all. For instance,
M-PESA will not necessarily work in India. Services have to be customised to
suit the culture, regulation and competitive landscape of a particular region
even as skill sets and distribution requirements will vary.
"Once there is trust, security and greater interoperability, only then will
there be growth in proximity transactions and m-commerce," concludes Amirah.
If you are interested in more information about this study, please, then send
an e-mail to Joanna Lewandowska, Corporate Communications, at
joanna.lewandowska@frost.com, with your full name, company name, title,
telephone number, company e-mail address, company website, city, state and
country.
Money in Mobile -- European Transactions is part of the Mobile & Wireless
Growth Partnership Service programme, which also includes research in the
following markets: European Mobile Broadband (EuMoBro) - Melee between 3G LTE
and Mobile WiMAX, European Mobile Messaging Markets, European Mobile Premium
Content Markets, Social Network Analysis-Looking Inside Mobile Communities
and, Sustainability in Telecoms. All research included in subscriptions
provide detailed market opportunities and industry trends that have been
evaluated following extensive interviews with market participants.
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Money in Mobile - European Transactions
M393-65
Contact:
Joanna Lewandowska
Corporate Communications - Europe
P: +48 22 390 41 46
E: joanna.lewandowska@frost.com
http://www.frost.com
SOURCE Frost & Sullivan
Joanna Lewandowska of Frost & Sullivan Corporate Communications - Europe, +48
22 390 41 46, joanna.lewandowska@frost.com
