The Global M-Payment Report from management consultancy Arthur D Little states that mobile payments will continue to grow despite the current financial crisis because of their lower service costs compared to traditional banking transactions and the proliferation of mobile technologies, particularly in developing economies.
Indeed, m-payment volumes are expected to grow at a rate of 76 percent a year in emerging markets to account for 65 percent of the worldwide total by 2012. Transactions in developed economies are forecast to grow at an annual rate of 56 percent to reach 35 percent of the total over the same period.
In 2008, 24 percent of m-payments were concentrated among Japan, South Korea and Australia, the report said. Western Europe, which is currently in second place with 13 percent of overall volumes, will become the biggest contributor to transaction volumes by 2012 with 17 percent of the total.
Arthur D Lee said proximity or contactless payments will account for 51 percent of global mobile transactions by 2012.