Both mobile operators and banks are turning to mobile transactions to foster loyalty and drive revenues, according to a new report from Frost & Sullivan. Ranging from vouchers and bank balance checks to remittance and top-up payments, mobile money is finally coming to fruition in both the banked and unbanked sector, while near field communication (NFC) promises to be the pot of gold at the end of the rainbow, claims F&S.
The report--Money in Mobile - European Transactions--estimates the mobile money market in Western Europe to grow to €4 to €5 billion by 2013. The research examines both the banked and unbanked sectors and segments mobile money into four areas, namely: non-NFC based m-payments, mobile banking, remittance, and NFC based m-payments.
"Solutions targeting the developed world require a long-term strategy, even as providers will need to find a viable solution for retail payments (B2C)," notes Frost & Sullivan principal analyst Sharifah Amirah. "NFC is potentially a solution, but hardware costs and mass market availability still remain key challenges for its widespread adoption. In the mean time, SMS-based services will drive growth." Article