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1 in 5 mobile handsets to include wallet functionality by 2018 - report

Monday 26 May 2014 09:00 CET | News

One in five mobile handsets will have mobile wallet functionality by 2018, against less than one in 10 at the end of last year, recent findings indicate.

According to a report by Juniper Research entitled Mobile Wallets: Strategies for Developed and Developing Markets 2014-2019, growth would be driven by two distinct wallet models. In emerging and developing markets, Stored Value Accounts are increasingly enabling first-time financial access for unbanked individuals. The report anticipates a surge in deployments across sub-Saharan Africa, developing Asia and Latin America.

North America and Western Europe mobile wallet deployments are expected to include contactless payment functionality. The regions are forecast to receive a boost both from the anticipated launch of an Apple iWallet later this year and through Host Card Emulation-based Near Field Communications services. According to the report, more than one in three mobile wallets — and over 50 % of wallets in developed markets — will include contactless payment by 2018.

Also, the report revealed that the mobile wallet profile would be strengthened through Person-to-Person payment initiatives such as the UKs Paym, which will be integrated into customers existing mobile banking or payment apps as an additional way to pay. At the same time, the report argued the mobile P2P market in the US was being driven by a number of startups, including Venmo and Dwolla, targeting younger demographics.


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Keywords: mobile handsets, wallet functionality, mobile wallet, contactless payment, payments , report
Categories: Payments & Commerce
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