Mobile Payments to Jump in 2011, But May Not Be Enough - Gartner
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Google (Nasdaq: GOOG) and VeriFone (NYSE: PAY), among others vying for the lead may be on the right track when it comes to mobile payments.
Gartner research shows nothing but growth in the mobile payment industry; not only will consumers be adopting it more, but they'll also be spending more as comfort level and expansion continue.
From 102.1 million users in 2010, Gartner expects that number to grow 38.2 percent to 141.1 million users in 2011. Additionally, spending will ramp-up from $48.9 billion to $86.1 billion, a 75.9 percent increase.
Overall spending per user will increase from about $478.94 to $610.21, a 27.4 percent jump.
But this may not be quick enough, according to Gartner.
"In developing markets, despite favorable conditions for mobile payment, growth is not as strong as was anticipated. Many service providers are yet to adapt their strategies to local requirements, and success models from Kenya and the Philippines are unlikely to be translated to other markets," said Sandy Shen, research director at Gartner. "While developing markets have favorable conditions for mobile payments, such as high penetration of mobile devices and low banking penetration, this is no guarantee of success, unless service providers adapt their strategies to local market requirements."
Beside Google, financial institutions like Visa (NYSE: V), MasterCard (NYSE: MA), and Discover (NYSE: DFS), will likely see some upside and push for further integration over the next several months.
NXP Semiconductors NV (Nasdaq: NXPI), which makes chips and technology for NFC, is also seen as a major beneficiary of the trend.
Gartner research shows nothing but growth in the mobile payment industry; not only will consumers be adopting it more, but they'll also be spending more as comfort level and expansion continue.
From 102.1 million users in 2010, Gartner expects that number to grow 38.2 percent to 141.1 million users in 2011. Additionally, spending will ramp-up from $48.9 billion to $86.1 billion, a 75.9 percent increase.
Overall spending per user will increase from about $478.94 to $610.21, a 27.4 percent jump.
But this may not be quick enough, according to Gartner.
"In developing markets, despite favorable conditions for mobile payment, growth is not as strong as was anticipated. Many service providers are yet to adapt their strategies to local requirements, and success models from Kenya and the Philippines are unlikely to be translated to other markets," said Sandy Shen, research director at Gartner. "While developing markets have favorable conditions for mobile payments, such as high penetration of mobile devices and low banking penetration, this is no guarantee of success, unless service providers adapt their strategies to local market requirements."
Beside Google, financial institutions like Visa (NYSE: V), MasterCard (NYSE: MA), and Discover (NYSE: DFS), will likely see some upside and push for further integration over the next several months.
NXP Semiconductors NV (Nasdaq: NXPI), which makes chips and technology for NFC, is also seen as a major beneficiary of the trend.
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