M-Payments to Double in Asia Pacific by 2015
Oct. 12, 2010
Mobile payments in Asia-Pacific are expected to reach $3.6 billion in the next five years, growing 15 percent a year from 2010 to 2015, according to Mountain View, Calif.-based management consulting firm Frost & Sullivan. The SMS method, which accounted for nearly 82 percent of total transactions in 2009, will likely remain the dominant mobile payment channel until 2015 when it will account for about 67 percent of m-payments. Other payment channels such as WAP (Wireless Application Protocol) and DMB (Direct Mobile Billing) contributed small fractions to m-payments in 2009, with adoption levels not expected to rise through to 2015. “Having one of the most advanced mobile cultures in the world, Japan and South Korea lead the region in the adoption of mobile payments,” said Shaker Amin, mobile payments industry analyst for Frost & Sullivan. He adds that the relatively less-developed mobile markets such as China, India, Indonesia and the Philippines, where access to traditional banking services is highly skewed against the rural mass population, are showing rapid take-up of mobile banking services, including person-to-person (P2P) transfers and remittances. “Even in emerging markets such as Bangladesh, Pakistan and Sri Lanka—although limited to mostly SMS-based bill payments and micro credit transfers—m-payments services are increasingly becoming popular,” Amin said.