Wellesley, MA (PRWEB) May 08, 2013
The global market for mobile wallet technologies is expected to reach nearly $665 billion in 2017 after increasing at a five-year compound annual growth rate (CAGR) of 142%. In 2011, the market was valued at just $4.1 billion and increased to nearly $8 billion in 2012.
The concept of mobile payment was adopted slowly because of a lack of mobile technology; but, due to advancements in technology, mobile payment has rapidly increased in financial service sectors.
Near-field-device communication, text-based, and service-based payments are used all over the globe to transfer funds. Smartphones and mobile devices, which are highly advanced in software and hardware, appeared worldwide, enabling safe and secure financial transactions; as a result, consumer usage of mobile devices to make payments also has increased.
Communication in day-to-day life and business has changed due to mobile devices and possibly the traditional way of financial transactions also have changed due to the use of mobile devices or mobile phones, in particular, providing new opportunities to merchants and service providers to transform mobile phones into a mobile wallet. Mobile content services (games, ring tones, and other applications) make consumers eager to use their mobile phones to transfer funds or make payments. Mobile phones also provide opportunities for financial industries and banks to expand their activities as the increase in mobile phone users can increase the number of bank accounts.
The mobile wallet is a submarket of mobile payment. Mobile wallet transactions are carried through an exclusive mobile wallet account, in which a user has a user code and password. Mobile payment pays the transaction through the individual’s bank account, debit card, or credit card independently. Mobile wallet payments, however, are processed through a mobile wallet account. The key objective of the mobile wallet is to facilitate a user with an electronic wallet in which all the contents of a real wallet such as cash and cards are electronically available at any time and anywhere. The most important driver for money transfers through a mobile wallet is the transfer without the need of Internet (typical Internet-enabled desktops or laptops). This increases the accessibility of such a facility to the rural segment and also individuals who do not hold bank accounts.
A business module is the major driver adopted in the mobile wallet system. This module requires few changes involved in technological infrastructure; new internal controls and training must be monitored and designed. The various players in a business module could be mobile operator-centric, bank-centric, hybrid collaborative, or independent service provider. Analyzing, creating and delivering new services for customer satisfaction can drive a mobile operator to see profits and bring in new customers.
For both business-to-customer (B2C) and business-to-business (B2B) activities, customer relation management (CRM) should provide technological infrastructure to detect and rectify risk factors, liabilities, and responsibilities related to mobile payment customer grievances while handling cross-organizational and cross-platform transactions in a business module.
The Asia-Pacific region generates the highest revenues from the mobile wallet and will continue to grow at the highest rate during the forecast period. The increased penetration levels of smartphones combined with the convenience of processing low-cost and high-volume transactions through the mobile wallet is expected to drive the market growth in this region at a very significant rate.