Global m-payment transactions are to almost double every year until 2015, when the market hit £591bn, according to KPMG.
“Growth in the m-payments marketplace will be driven by customers’ increasing need for convenience and the development of a raft of new applications enabling commerce in the palm of our hands,” said David Hodgkinson, senior manager in KPMG’s customer and channel consulting team.`
“Today premium SMS dominates mobile payments, but by tomorrow contactless and cloud-based services will dominate, with an expected market share for contactless of 37 % by 2015.”
According to their report, smart-phones accounted for 29% of all mobile phone sales last year – almost doubling in size from 2009.
The study also found 21% of retailers consider the payment model as important, compared to only 2% of retailers saying it is unimportant for their businesses.
In a related research paper published at the end of March, KPMG said that the risks associated with mobile commerce are also to rise, especially for telcos.
This rise in risk correlates to the growth in the volume of transactions, KPMG said.
KPMG reported that 94% of telecom operators worldwide expect revenue leakage to increase and that half of them believe that these losses would be significant for their business.
Among the factors that increase the risks for the modality, the survey listed:
- complex network systems,
- converged service offerings,
- multiple third-party partners,
- and a rise in outsourcing.
All these factors create the potential for inaccurate data capture and billing, and increased fraud, KPMG highlighted.