Mobile payments will generate transactions worth around £11.6bn by 2011, says analyst Juniper Research.
Juniper said the mobile-payment ecosystem is, "evolving into one where co-operation between the major stakeholders is creating an atmosphere that is incubating intelligent ways in which the mobile phone can be used for payment".
The company said, "resolving the business model and the revenue-share issues were a priority, but much of the technology is now available" to drive mobile payments.
Secure and easy-to-use applications backed by the large credit-card organisations and financial institutions are encouraging growth, said the analyst.
Juniper estimates there will be 204m mobile-payment users by 2011.