Juniper Research says one in five mobile handsets will have mobile wallet functionality by 2018, against less than one in 10 at the end of last year, according to a new report.
The report, “Mobile Wallets: Strategies for Developed and Developing Markets 2014-2019,”
found that growth would be driven by two distinct wallet models. In emerging and developing markets, Stored Value Accounts are increasingly enabling first-time financial access for unbanked individuals, according to the press release about the report. The report anticipates a surge in deployments across sub-Saharan Africa, developing Asia and Latin America.
North America and Western Europe mobile wallet deployments are increasingly expected to feature contactless payment functionality, according to the report. The regions are forecast to receive a boost both from the anticipated launch of an Apple iWallet later this year and through Host Card Emulation-based Near Field Communications services. According to the report, more than one in three mobile wallets — and over 50% of wallets in developed markets — will feature contactless payment by 2018.
The report also claimed that the mobile wallet profile would be bolstered through high-profile Person-to-Person payment initiatives such as the UK’s Paym, which will be integrated into customers’ existing mobile banking or payment apps as an additional way to pay, the press release said. At the same time, the report argued the mobile P2P market in the US was being driven by a number of startups, including Venmo and Dwolla, targeting younger demographics.
“While P2P mobile payment services have struggled to gain traction in developed markets, financial institutions are keen to commit to them as they can serve as an attractive value-add to consumers in an increasingly cashless society,” Dr. Windsor Holden, the report’s author, said in a press release.
Other findings from the report include:
- China’s Alipay now has more than 100 million wallet users.
- HCE threatens operator role in contactless value chain.
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