M-Payment Services Will Pay Off For U.S. Operators – Strategy Analytics
Verizon Wireless’ decision to partner with Obopay (announcing an m-payment service enabled as a BREW application) will likely pay dividends, according to research from Strategy Analytics. It bases much of its optimism on the examples offered by Japan and Korea, countries where operators have pioneered cashless services and transactions for train tickets, vending machines and parking meters.
Against this backdrop, the research firm predicts “significant activity in the form of payment and ticketing trials towards the end of 2007.” It forecasts $36 billion in spending via contactless payment interfaces on mobile phones by 2011. (No idea of the increase from today’s level though
Quick on the heels of mobile payments will no doubtedly be broader money transfers on mobile. The foreign remittances opportunity alone is considered a $1 trillion market within 5 years, all transfered via SMS platformed transfers. In addition the capability for IM transfered funds exists as well, broadening the quick payments segment to a fully Web (Mobile) 2.0 solution.
If interested check out my recent posting "The Next Big Thing for Mobile: Bottom of the Pyramid Plays" at http://paulrruppert.typepad.com/blog/2007/06/carnival_of_the.html
Paul, thanks for your comment. Your detailed post is a worthwhile read indeed – all the better since you tied your observations back in with C.K.Prahalad's work. (I'm a great fan and follower of his thinking…) I share your conviction that SMS & MIM innovations will impact and transform mobile payments in the emerging markets. You don't cover the obstacles though – and there are plenty … not to mention the danger of abuse by parties who would rather wash their money than transfer it….