Mobile payments (m-payments) in Asia-Pacific are expected to cross billings of $3.6bn in 2015 at a CAGR (compound annual growth rate) of 14.8% (2010-2015), two-fold more from 2009 revenues of $$1.6bn, according to Frost & Sullivan estimates.
Frost & Sullivan industry analyst Shaker Amin said, technology innovations and operators’ initiatives – particularly with NFC (Near Field Communication) – as well as rising consumer demand in both the developed and emerging markets will contribute this growth.
The SMS method, which accounted for nearly 82% of total transactions in 2009, will likely remain the dominant mobile payment channel until 2015, albeit dropping to about 67% by then.
WAP (Wireless Application Protocol) and DMB (Direct Mobile Billing) other payment channels have contributed small fractions to m-payments in 2009, with adoption levels not expected to rise through to 2015.
"In sharp contrast, despite having one of the highest mobile penetrations in the region, Hong Kong, Singapore and Taiwan have shown little adoption of m-payments to date," Amin said.
"Contactless payments in these markets are primarily driven by the use of smart cards as opposed to m-payments.
"NFC will find wide popularity, and quickly too, in developed markets where mobile penetration rates and the use of smart cards for contactless payments are already high, and rallying the supporting infrastructure is relatively easier (than in developing countries)."
