Report: M-Commerce, APAC Drive Global Mobile Payments to $1 Trillion
Aug. 20, 2015
By the end of 2017, worldwide mobile payments will more than double in value to around $1 trillion from less than $500 million in 2015, according to a new report from International Data Corporation (IDC). And, it will be m-commerce, not contactless payments in stores and Asia/Pacific, not North America or Europe, driving the increase, the report said. Emerging nations will have increasing access to the Internet via smartphones leading to a boom in connectivity. At the same time, IDC said, the growth in smartphone adoption will outpace growth in credit and debit card adoption, shifting payment behavior to bank-account-linked mobile wallets.
“Smartphone adoption has grown much more rapidly than general banking and card adoption in the Asia/Pacific region,” said Shiv Putcha, associate research director at IDC Asia/Pacific. “Recent focus on financial inclusion policies in various countries has given a boost to connecting the unbanked. This phenomenon, coupled with the innovation of semi-closed wallet schemes linked to bank accounts, has given a major boost to mobile payments in Asia-Pacific.”
Putcha said more developed Asian markets like Australia, Hong Kong, and Singapore will experience strong banking and card adoption and “will tread a similar path as mature Western economies have for mobile payments,” focusing on proximity solutions like Apple Pay and the soon-to-be-available Samsung Pay . Emerging markets like China and India will rely more on remote payments via the Internet.