Worldwide mobile payment initiatives have now reached more than a 100 and the number of such programs is increasing strongly over the last few months, research reveals.
27 new mobile payments programs have been launched worldwide in the last four months and seven initiatives in the last week, according to a report. Researchers have found evidence that there is a strong trend towards remittance and mobile money transfer in general. 70 percent of the initiatives launched in the last four months target the mobile money transfer market and over 50 percent of all current mobile payment initiatives around the world focus on mobile money transfer. However, despite the recent expectations, analysts believe the mobile payments market is still unfulfilled. In 2002, market experts failed when they predicted that EUR 55 billion would be processed through mobile payments by 2006. At present, the mobile payments market is reported to be at EUR 2.2 billion, only 4 percent of this prediction. The same experts now believe that the market will reach EUR 10 billion by 2010.
The above-mentioned is contained in an update to the ‘Mobile Payments 2008’ report, produced by Dutch consultancy firm Innopay and Dutch research and publishing company Telecompaper. The report includes an analysis of more than 100 initiatives and also looks into the critical issues that need to be resolved in order to make mobile payments initiatives successful. According to the report, the problems that need be to addressed by market players are the lack of mainstream contexts, the complex value chain with lack of co-operation, lack of interoperability and technology standards, security concerns, and competitiveness of existing payment methods in developing economies, as well as the lack of regulation.