Global payments through mobile devices are expected to reach about $507bn in 2014, soaring 40% year-on-year, according to a report form the analysis firm Juniper Research.
According to the report, the average number of transactions being done though tablets is already more compared to those done via desktop PCs across various markets.
The report revealed that even though spend through smartphones is increasing sharply, they were designed to be used as search and discovery devices with the final purchase being made on the tablet.
The analysts however said that the adoption of contactless mobile payments is growing slowly with just few commercial launches, though in midium terms the prospect of growth is brighter with the emergence of cloud-based SE (Secure Element) solutions which reduces time-to-market for NFC (Near Field Communications) solutions.
Juniper Research report author Windsor Holden said the prevalent business models for NFC have been unattractive to banks and left them dependent on multiple network operators, each of which may have its own approach to mobile wallet management.
"HCE (Host Card Emulation) solutions have the potential to revitalise a market which has struggled to gain traction," Holden added.
According to the report, the contactless mobile payments are expected to increase with the growth in contactless infrastructure deployments as majority of POS (Point of Sale) terminals.
Across various developing markets like Kenya and Uganda, the imposition of service taxes is considered to hinder the growth of domestic mobile money transfer.
