Mobile Transactions Popular – Minus the Fees

Mobile transaction usage is growing, but consumers show little willingness to pay for such services, according to Yankee Group research. The company’s forecasts predict unprecedented growth in mobile transactions worldwide, yet consumer survey results show that less than 10 percent of respondents would be willing to pay extra for mobile transaction services such as mobile banking, mobile coupons and mobile payments.

Yankee Group senior analyst Nick Holland, author of the report titled “A View from the Trenches: What Consumers Think of Mobile Transactions,” says if banks, mobile operators, card networks and retailers want to tap mobile transactions as a revenue stream, they’ll need to come up with more creative schemes than per-transaction fees. Other findings include:

• The total value of global mobile transactions will increase from $162 billion in 2010 to $984 billion in 2014.

• The number of active mobile coupon users is expected to grow from 2.7 million in 2010 to nearly 35 million in 2014.

• The number of near-field communications (NFC)-enabled phones will grow from just 834,000 in 2010 to 151 million in 2014, a CAGR of more than 300 percent. Similarly, the value of NFC-based transactions will explode from $27 million in 2010 to $40 billion in 2014.

• In 2010, EMEA leads all regions with 42 percent of worldwide active mobile banking users, followed by Asia-Pacific (38 percent), North America (16 percent) and Latin America (4 percent). But by 2014, Asia-Pacific leads with 54 percent, followed by EMEA (32 percent), North America (10 percent) and Latin America (4 percent).

Source of Information : Wireless Week