Mobile transactions expected to exceed $1 trillion by 2015: Yankee Group
The research, titled “The Mobile Money Forecast,” finds that not only is Near Field Communication taking off, it is here to stay. The study also shows a specific growth with mobile banking compared to mcommerce, mobile coupons and mobile payments.
“Our new research shows that mobile transactions are not just news, we now have the data to back it up,” said Nick Holland, senior analyst at Yankee Group, Boston.
Yankee Group is a research firm.
According to the Yankee Group study, 27 percent of participants use mobile banking, making it the most used form of transaction.
To compare, 13 percent of consumers surveyed used mcommerce, 11 percent used mobile coupons and 9 percent used mobile payments.
“As much as mobile is radically new for payments, credit cards and cash will still be used in the foreseeable future,” Mr. Holland said.
“People trust banks and existing bank networks,” he said.
Additionally, the study found that NFC-enabled phones will grow from seven million in 2011 to 203 million in 2015.
When asked if they were interested in mobile payments, the 20-24 year-old and 35-44 year-old demographics were most likely to say yes, with 24 percent each.
Only one percent of consumers aged 65 or more were interested in mobile payments.
The study also found differences between how men and women view mobile payments.
Eighty-four percent of men surveyed said they would consider a form of mobile payments.
Sixty-six percent of women said they would be interested in mobile payments.
According to Mr. Holland, the most interesting finding in the study is the amount of consumers using price-comparison applications.
“Consumers aren’t just using it to browse; they are using it for action,” he said.
“It shows how empowered users have become while using mobile apps. We also found a significant percentage of consumers would actually ask for a price comparison on it.”
Although mobile payments are an opportunity for retailers and consumers, it will also be a tough area of mobile in the future.
“It’s a double-edged sword for consumers and companies,” Mr. Holland says
“Consumers are now prepared to purchase on mobile, but there is stiff competition for companies who want to get into the industry,” he said.
The key to stretching mobile in the future will be efforts that everyone can get a value out of, regardless if they have a high-powered mobile device.
“If you lose sight of the consumer, then you lose the mission,” Mr. Holland said.
“We’ve moved past the focus being on payments,” he said.
“Now retailers need to focus on what they can do to make shopping more fun for consumers.”