M-Commerce Market to grow to $40bn fuelled by micropayments

M-Commerce Market to grow to $40bn fuelled by micropayments

* Submitter: Juniper Research [View SourceWire PR Company Listings]

* Release Date: 05-10-2004

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The global mobile commerce market excluding mobile entertainment, will

become a $40bn industry by 2009, fuelled by a growth in micropayment

volumes, according to a new study from Juniper Research.

Large numbers of small payments will make up the vast majority of sales

via mobile phones, with the average Western European making

approximately 28 transactions a year via the mobile phone by 2009. The

average cost of each transaction in 2009 in Western Europe is expected

to be worth approximately $3.

Whilst the current m-commerce market is dominated by digital goods such

as mobile entertainment (ringtones, games, wallpaper, gambling and so

on), other markets such as ticket purchases, retail, and person to

person payments will emerge as additional application areas, with

revenues totalling $39bn by 2009.

The purchase of tickets (such as car parking and cinema tickets) using

the mobile phone, will dominate the growth in m-commerce. Mobile users

have started already to show interest in ticketing particularly in

Europe and Japan, while in the retail sector, initial applications are

geared towards vending machines, but this will see slow growth.

The report also reveals that:

Ticket purchases will emerge as a major application area by 2007 with

revenues totalling $39bn by 2009.

· Retail Point of Sale (POS) mobile transactions will be slow and be

worth only $299m by 2009.

· RFID and Infra Red technologies are likely to have major influence on

future developments of mobile as a payment device.

· The development of global standards will continue to be slow due to

too many industry bodies concentrating on vested interests.

Report author Marc Ambasna-Jones said:

"Mobile commerce is slowly starting to happen, driven by the demand for

ringtones and games but also increasingly music downloads. Other

applications too will start to emerge, such as ticketing and these are

applications that mobile users can understand as they start to explore

more uses for their increasingly powerful handsets."

"The key for m-commerce growth is simplicity. Will it be easier to use

than a credit card for example? Can it ever be more convenient than

cash? Ultimately the success or failure of mobile commerce, either macro

or micro payments, will come down to this."

White papers and further details of the study ?Mobile Commerce

(M-Commerce) & Micropayment Strategies? can be freely downloaded from

http://www.juniperresearch.com. Alternatively please contact Michele

Ince at micheleince@juniperresearch.com, Telephone +44(0)1256 345612.

Juniper Research provides research and analytical services to the global

hi-tech communications sector, providing consultancy, analyst reports

and industry commentary.