By the end of the year, the number of mobile payment transactions is expected to top 29 billion, according to the World Payments Report, jointly prepared by Capgemini and The Royal Bank of Scotland. That represents 62% growth over the 18 billion mobile transactions conducted in 2013.
The report defined mobile payments broadly as any payment made in-person to a merchant using a mobile phone or any mobile commerce transaction made through a mobile app.
BI Intelligence estimates that nearly 392 billion non-cash transactions will be conducted globally in 2014, based on historical growth rates. Based on Capgemini’s forecast then, this means that mobile payments will account for 7.4% of these transactions, increasing from less than 5% last year.
That will translate to a value of $US796 billion for mobile transactions in 2014, more than tripling from the $US256 billion spent on mobile transactions in 2012, according to the World Payments Report.
BI Intelligence typically defines mobile payments as point-of-sale consumer-to-business transactions, such as a payment made to an in-store merchant through an application like Square. However, the World Payments Report also included several other mobile transactions in its measurement of mobile payments:
- Peer-to-peer: A transfer between two individuals. Mobile peer-to-peer payments are especially popular in developing countries where consumers have limited access to credit.
- Consumer-to-business: A payment made to a merchant or e-commerce retailer through a dedicated mobile app, but not a mobile website. At BI Intelligence, we’ve typically referred to these transactions as mobile commerce.
Business-to-business: A transfer between businesses.
- Business/government-to-consumer: A transfer between businesses or governments to an individual.
Here’s another look at the share of global non-cash transactions in 2014.
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