Mobile banking users will reach almost a billion within four
years and will complete 62 billion transactions in 2012, according
to a
survey
carried out by IMS Research.
The combination of contactless mobile payments,
mobile banking and over-the-air payments will push the number
of mobile banking users to 884 million in 2012.
The research said the growth is being fuelled by adoption in
developing countries where mobile is often the only way to access
financial services due to a lack of banking and fixed
communications infrastructures.
"This contrasts strongly with more developed markets where
mobile is an alternative but personalised means of access," the
survey report said.
The survey said that firms such as Vodafone, AT&T are adding
to the growing momentum around mobile financial services.
"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", said John Devlin, research
director at IMS Research. "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."
Juniper Research predicts said in April that 816 million
consumers will use mobile devices for banking services by 2011
which is 10 times the 2007 figure.
The Juniper Research
report said issues such as financial regulation, payment
transaction costs, revenue sharing and customer support
difficulties will have to be addressed.
Banks can expand business and hold off competition through
cross border money-transfer services supported by mobile phones,
according to a Gartner report entitled Mobile Phone Money Transfer
Services: Compliance is a Bank's Best Friend.
The analyst firm said working in partnership with mobile
operators, banks can build new revenue streams through mobile
phone-based international payment services. It said that banks have
a good understanding of international financial regulations which
makes them ideal partners for the mobile operators.
Banks have an advantage in setting up cross border mobile
payments because they have a good understanding of international
financial regulations, said Christophe Uzureau, principal research
analyst at Gartner.