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IMS Projects 884-Million Mobile Banking and Payment Users by 2012

7:00 am on June 22, 2008 | Category: Business, Telecom Services, Wireless, Wireless Technology

The number of cell phone owners using contactless mobile payment technology, mobile banking services, and over-the-air financial transactions will reach 884 million by 2012, and around 62 billion mobile transactions will take place in that year, according to new projections by IMS Research.

IMS notes in its report that mobile penetration in many developing markets is far higher than either fixed-line telecommunications, or traditional banking services. This is in stark contrast to developed markets, including Europe and North America, where mobile banking is considered an alternative to other means of access.

“The early seeds sown by a handful of companies have started to grow and now serious backing is being provided by both the financial and operator communities,” according to IMS Research Director, John Devlin. “Service growth to date is already strong and taking off across a number of markets in Asia, the Middle East and Africa. When coupled with the growing volume of rollouts and service launches in Europe and the Americas, the number of new users nearly tripled in 2007.”

The GSM Association’s Mobile Money Summit in Egypt last month drew attention to the issue of mobile finance, as representatives of various companies discussed benefits to wireless carriers and their partners. International remittance providers such as Western Union, meanwhile, acknowledged the growing competition posed by mobile payment services.

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