The just released study by consulting firm KPMG put up the jaw dropping number: By 2015, mobile payments will top $1 trillion, and in the process the volume of mobile payments will spike up by around 100% per year.
Fueling the growth, said KPMG, is smartphone and tablet computer popularity, which are lifting consumer comfort with paying via portable silicon-based devices.
The report predicted measurable drops in cash and credit card payments.
“The data also show that 21% of retailers already view m-payment capability as important enough to be their ‘main activity or, at least, a key enabler’. Just 2% see m-payments as unimportant, believing it will have no bearing on their organization,” said a KPMG statement on the report.
“Growth in the m-payments marketplace will be driven by customers’ increasing need for convenience and the development of a raft of new applications enabling commerce in the palm of our hands. Today premium SMS dominates mobile payments, but by tomorrow contactless and cloud-based services will dominate, with an expected market share for contactless of 37 percent by 2015,” said David Hodgkinson, senior manager in KPMG’s customer and channel consulting team.
That, in effect, is a buoyant outlook for the future of NFC payments.
Gerry Penfold, a KPMG partner, said in a statement, “There is certainly scope for collaboration between smartphone manufacturers, telecom companies and retailers but the big, unanswered question revolves around who the customer will trust with their data and their m-cash. Battle lines will be drawn around issues such as security, infrastructure and interoperability of devices. For consumers, speed and security of payment will be the mark of success, but for technology and telecoms companies, speed to market will be critical and how quickly they can respond will depend on the impact of regulation. Clearly, though the winners will be the companies that can provide the richest consumer experience with the greatest convenience.”