Report: Mobile Transactions Exploding, but Consumers Still Unwilling to Pay
Feb. 17, 2011
New research from Boston-based connectivity consultancy Yankee Group shows that, while mobile transaction usage is growing, consumers show little willingness to pay for these services. The company’s forecasts predict unprecedented growth in mobile transactions worldwide, with the total value of global mobile transactions increasing from $162 billion in 2010 to $984 billion in 2014. However, Yankee Group’s consumer survey results show that less than 10 percent of respondents would be willing to pay extra for mobile transaction services such as mobile banking, mobile coupons and mobile payments. “Every silver lining comes with a big, dark cloud and the explosion in mobile transactions is much the same,” said Nick Holland, senior analyst at Yankee Group and author of the new report A View from the Trenches: What Consumers Think of Mobile Transactions. “Although mobile transaction service usage is increasing phenomenally, consumers show little interest in paying any additional fees for them. If banks, mobile operators, card networks and retailers want to tap mobile transactions as a revenue stream, they’ll need to come up with more creative schemes than per-transaction fees.” The research also found Asia-Pacific will take over from the Europe-Middle East-Africa region as the leader in mobile banking, that the number of mobile coupon users will grow from 2.7 million in 2010 to 35 million in 2014 and that transactions on NFC-enabled mobile devices will increase from $27 million to $40 billion in the same timeframe.