Mobile Payments

Mobile Payment Barriers Mean Operators Missing Out on $142bn

Square paymentsNetwork operators may be missing out on up to $142bn (£98bn) in mCommerce revenues due to barriers that customers face when processing payments on their smartphones and tablets, a new study has suggested.

According to a report conducted by Ovum Research for Docomo Digital, carrier-driven payments are predicted to drop from 4.1 per cent in 2114 to 0.8 per cent in 2020 if operators, vendors and regulators don’t work to clear barriers to seamless payments.

The research recommends that a mindset change is required from all stakeholders in the payments processing chain, with education and safeguards put into place to ensure that mobile operators can secure a bigger stake in the future of mCommerce.

“Phone penetration of the global adult population is reaching parity and smartphones will soon be the ubiquitous connected device, so it makes sense that more and more people will want to use their mobile device to pay for goods and services,” said Hiroyuki Sato, CEO of Docomo Digital. “Mobile commerce is very important to operators but if the barriers remain in place, they could lose out on a multi-billion dollar market.”

The report also showed that, with competition between operators driving subscription plan prices lower and mobile retail on the rise, mCommerce spending will outstrip the total revenue of operators by 2020, demonstrating how crucial it is for mobile carriers to establish a presence in this market.

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