Banks and credit card companies are set to be the biggest beneficiaries of a meteoric rise in mobile payment services, according to the latest global survey of business executives by KPMG.
KPMG's global survey of 970 executives in the financial services, technology, telecommunications and retail industries, The 2011 KPMG Mobile Payments Outlook, found that respondents placed telecommunications companies third, ahead of specialist online payment players (PayPal, Boku, Obopay), online service provider giants (Google, Facebook, Amazon), retailers and technology companies.
The survey noted that 83 percent of the respondents believe that mobile payments will be mainstream within four years, compared to only nine percent who see them as mainstream today. In fact, 46 percent believe mobile payments will be mainstream within two years.
Egidio Zarrella, Clients and Innovation Partner, KPMG China, said: "The combined global market for all mobile payments is expected to exceed USD1 trillion by 2014, with over one billion users estimated in that same year. This points to huge opportunities for vendors in this space, in particular for Asia Pacific, as a majority of payment users are now based in this region. It is therefore extremely important to have a strategy to address this rapid increase in demand."
Survey respondents highlighted a number of critical success factors for mobile payments, including convenience/accessibility (81 percent), simplicity/ease of use (73 percent), security (57 percent) and low cost (43 percent). Meanwhile key challenges for this sector saw security concerns take the top spot (71 percent), followed by technology/adoption (57 percent) and privacy (38 percent).
The majority of companies surveyed - 58 percent – indicated they have a mobile payments strategy in place, and half of those, are also already offering a mobile payments service. "Most respondents surveyed assess that it will take two to four years for mobile payments to move into the mainstream in their primary region of business. We believe that exploding smart phone growth, new applications and economic opportunities will see the pace of growth increase at a much faster rate tThe survey noted that 83 percenthan our respondents anticipate," said Zarrella.
Respondents were asked to assess five types of mobile payments: M-Wallet, M-Banking, contactless card systems, online payment systems and carrier billing. They identified M-Banking and online payment systems (Paypal, Boku, Obopay) as either mainstream today or most likely to gain traction.
Zarrella added: "It is important to note that mobile payments are not restricted to retail banks. We see growing interest among commercial banks to leverage these forms of payments as a key differentiator and potential revenue generator."
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Note to Editors T
he global mobile payments survey examined the leaders, opportunities, advantages and barriers in mobile payments, and was carried out by KPMG's global Information, Communications and Entertainment practice. Covering the Americas, Europe, Middle East, Asia/Africa, and Asia Pacific, the study surveyed 970 business people, including 250 in the U.S., in primarily the financial services, technology, telecommunications and retail industries.
KPMG China has 13 offices (including KPMG Advisory (China) Limited) in Beijing, Shanghai, Shenyang, Nanjing, Hangzhou, Fuzhou, Xiamen, Qingdao, Guangzhou, Shenzhen, Chengdu, Hong Kong and Macau, with around 9,000 professionals.
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 150 countries and have 138,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.