Juniper Research forecasts that Person2Person fund transfers and mobile payments in the developing world, together with the commercialization in 2009 of NFC (Near Field Communications) based m-payments, will generate transactions worth approximately $22 billion by 2011. The analysts find cooperation among the major m-payment industry stakeholders creating a positive atmosphere, and an ecosystem capable of incubating intelligent ways for using the mobile phone for payment.

Juniper notes that there is still much to do, and resolving the business model and the revenue share issues are a priority. However, much of the technology is available and there is a genuine willingness from the major stakeholders to resolve their differences and cooperate.

Greater availability of NFC devices, for physical mobile payments, coupled with secure and easy-to-use applications, backed by the large credit card organisations and financial institutions, will create the foundation for a healthy alternative to cash and other mainstream payment applications.

Report author Alan Goode said: "The technology is available now to enable secure and fast payments to be initiated on the mobile phone. The business model stills needs some work but there are positive signals emanating from the industry that will create considerable revenue for all parts of the ecosystem. I am cautiously optimistic for the future success of mPayments."

Highlights from the report include:

• The value of mobile transactions will grow to nearly $22 billion by 2011.
• SMS based Person2Person (P2P) fund transfers and payments will drive the developing world m-payment market.
• Adequate supply of contactless chip enabled devices, NFC and Felica, to enable over 52 million mobile phone users to make physical payments 2011.
• Retailers benefit with potentially lower transaction fees and increased basket size

About this study

In the study ‘Mobile Payment Strategies & Markets 2007-2011', Juniper Research illustrates the current and near-future status of mobile payments with interviews, case studies and analysis from representatives of some of the leading organizations in the growing mobile payment industry.

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