Global Mobile Payment Market to Hit 1 Billion Users

IE Market Research, a Canadian telecommunications consultant, estimates that global mobile payments transactions will rise to $1.13 trillion in 2014, a compound annual growth rate of 94.8%.

It found that mobile payments continued growing in 2009 with the total number of users increasing to 351.4 million.

Globally, the researchers expect the number of mobile payment users to rise to 1.06 billion in 2014 for a CAGR of 20.5%. On the transaction value side, the gross value of mobile payments transactions was $37.4 billion in 2009. Mainstream take-up of mobile payments will happen in the 2011 – 2013 time frame, they forecast, and in 2014, the gross value of mobile payment transactions will reach $1.13 trillion.

Closer to home, the researchers expect North American (Canada and the United States) mobile payments to rise to $288.4 billion in 2014, a CAGR of 98.7%. These two countries will account for 25% of the world market share for mobile payments by gross transaction values.

The biggest growth in North America likely will come from ticketing (CAGR of 138%) and digital purchases (CAGR of 120%). The introduction of various devices by Apple has changed the game on consumer acceptance of digital purchases using mobile devices, especially in North America. Surveys suggest that consumers are increasingly comfortable with the use of the mobile device as a payment tool.

While near-field communication transactions in North America will grow faster than in Europe or Asia-Pacific, surveys suggest that the level of acceptance for these is fairly low in North America. The number of NFC transactions in Western Europe was 17.4 times higher than in North America.