While the global mobile payment industry began chilling the champagne last year and looking forward to hitting the $1trillion in transactions benchmark in 2017, the analysts over at Heavy Reading Mobile Networks Insider have crunched the numbers again are predicting now that 2015 will be the year the industry can pop its corks and pour the bubbly.
Back in November of 2012, the Mobile Payments Today website reported on a study released by IDC Financial Insights that projected global mobile payments would reach $1trillion in 2017, calling that benchmark a “big sexy number.”
IDC Financial Insights has issued a new report on the future of mobile payments and the future is bright — kind of. According to the report, “Technology Selection: Worldwide Mobile Payments 2012–2017 Forecast,” worldwide purchase volume over mobile devices will exceed $1 trillion by the year 2017.
But according to Aaron McPherson, practice director for Worldwide Payment Strategies at IDC, that’s just a drop in the overall transaction bucket.
“Even at a trillion dollars — that’s a big sexy number — in the grand scheme it’s not that much,” McPherson said in a call with Mobile Payments Today. “It’s clear that (mobile payments has) a long ways to go,” he said.
Now only 4 months later the projections for 2017 have been given a dramatic face lift by Heavy Reading Mobile Networks Insider and are being forecast to hit the $1trillion mark by 2015. According to the report from HRMNI the benchmark will not be reached because of customer demand, it will be reached by a huge surge in merchants offering mobile payments.
“The fact is that mobile technology isn’t really just about talking any more,” explains Denise Culver, author of the Heavy Reading Mobile Networks Insider report. “It’s about making all the transactions that we used to do while sitting at the computer behind the desk available to us whenever and wherever we want to do them. But the fact is that consumers are not driving the trend toward mobile payments. The biggest drivers are retailers.”
What do you think about the projections being made by Heavy Reading Mobile Networks Insider? Do they have the projection right on the money? Leave a comment below and let us know.
About the author: Nadia Belanger is the CFO for the Direct Commerce Group and has held positions on a number of private, corporate and community boards. Nadia is responsible for all financial activities within the Group including but not limited to M&A, Investments, Risk Management, Information Technology and Human Resources. Prior to joining DebitWay in 2005, Nadia was the Corporate Controller for Generation Technologies Inc. Nadia also serves on the boards of several young technology companies in which Direct Commerce Group has invested.
About DebitWay.ca: The DebitWay.ca corporate blog is your best source for news in the online payment, online shopping, remittance and money sending industries. DebitWay.ca is a leading payment service provider that focuses solely on debit card services for Canadians using INTERAC®Online for payments, remittance and online shopping. DebitWay.ca – Canada’s Favourite Way to Pay! www.debitway.ca