According to a new research report from provider of business intelligence to the telecom industry Berg Insight, many new projects are now being initiated and by the end of 2013 there will be mobile wallet services commercially live in nearly half of the EU27+2 countries. The companies behind these wallet services include many of Europe’s largest mobile operators, banks and retailers.
In North America, mobile wallet users completed in-store payments for a total of USD 0.5 billion (EUR 0.4 billion) during 2012. However, the vast majority of these payments were made using Starbucks’ smartphone app, whereas mobile wallets that can be used at multiple merchants have yet to gain traction. In the longer term, universal mobile wallets will drive the majority of the mobile in-store purchase volume, which is expected to reach USD 44 billion (EUR 33 billion) by 2017.
Finally, the report has revealed that the required infrastructure for mobile wallet services is being rolled out and key partnerships are being formed between mobile network operators, financial institutions, retailers and other companies. However, before mobile wallets can attract the mass market, a broad range of services beyond payments need to be made available to consumers. “People do not have a problem with cash or payment cards today. Value-added services that enable new shopping experiences before, during and after payments will be what truly distinguish mobile wallets from the traditional payment instruments”, said Lars Kurkinen, telecom analyst, Berg Insight. He adds that the next few years will be a very important time during which mobile wallet operators have an opportunity to improve their services. “Gaining an early lead in the market can be crucial, as in the long term only a limited number of mobile wallet services will survive in each market due to network effects”, concludes Mr. Kurkinen.
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