Research service Heavy Reading Mobile Networks Insider is making a bold prediction for mobile payments, forecasting that they will account for $1 trillion in global transactions by 2015.
The company’s new research report points out that, for customers, paying at checkout is “a problem that doesn’t really exist”. The report suggests to mobile network operators (MNOs) and payment vendors that instead of trying to force customers to switch to mobile payments, they should show clear benefits to merchants. This should not be very hard since, as the report highlights, mobile payments enable MNOs, payment vendors and others in the ecosystem to capture valuable data and analytics information about the customers making mobile payment transactions.
Imagine being able to track and accurately understand what each customer considers purchasing, where he does so, how he does so, what he purchases and how much he pays. Even more so, imagine being able to interact with the customer in real time as he comments or shares information about the transaction on social networking. This scenario isn’t futuristic. It’s happening today.
Mobile payments are driven by the ability of mobile to integrate several factors – location, speed, commerce, storage of both value and loyalty, search and action – all in one place. A well-defined mobile proposition can create customer convenience, build customer engagement and create new revenue streams.
“Mobile payments have gone from being a cool-to-talk-about concept to a disruptive technology in a relatively short time frame,” says Denise Culver, research analyst with Heavy Reading Mobile Networks Insider and author of the report. “MNOs and payment vendors should be looking at different ways to drive demand for mobile payments, which have the potential to create significant revenue throughout the entire mobile ecosystem.“