The value of mobile payments made globally in 2013 is set to be 44% higher than last year, at $235.4bn, but the value of near-field communications (NFC) transactions is expected to drop by 40% due to disappointing adoption.
The research from Gartner revealed that the number of mobile payment users will rise to 245.2 million in 2013, compared with 200.8 million in 2012.
It also predicted that the volume and value of mobile payments will grow at an average of 35% a year through to 2017. In Western Europe, transaction value is expected to reach $29bn in 2013, compared with $19bn in 2012.
Gartner expects NFC will account for only about 2% of total transaction value in 2013 and 5% of the total transaction value in 2017. Gartner said the fall in NFC payments is due to “disappointing adoption of NFC technology in all markets in 2012 and the fact that some high-profile services, such as Google Wallet and Isis, are struggling to gain traction".
It added that growth was expected to increase from 2016, however, when the penetration of NFC mobile phones and contactless readers increases.
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Money transfers accounted for 71% of mobile payment value in 2013, and purchasing goods accounted for 21%.
“Money transfer value continues to increase because users are transacting much more frequently, although at lower values, due to the wider availability of services and transaction costs that are lower than those of traditional bank services. This makes money transfer a leading use case,” said Gartner.
“However, worldwide, people are not purchasing as much because the buying experience on mobile devices has yet to be optimised. People are spending less via mobile devices than via online e-commerce services and at retail outlets. Merchandise purchases account for about 23% of the total value forecast for 2017.”