Mobile payments set to soar by 2014

Mobile payments for digital and physical goods will reach almost $630 billion by 2014 according to Juniper Research.

According to the analyst company’s Mobile Payments Report this figure will be $170 billion,  up from this year this year as many of us begin using money transfers and NFC (Near Field Communications) transactions through our mobiles.

The company said the growth across all market segments was being driven by the wide adoption of smartphones and the increased use of apps. It also said that  SMS ticketing schemes such as those offered by OBB Austrian Railways and Skane Traffic in Sweden have been important developments in the mobile payments market and shopping by mobile at stores such as Amazon Mobile will rise significantly over the next five years.

Juniper predicted that while the digital goods segment will account for nearly half of the market in 2010, the emerging segments such as physical goods payments, NFC and money transfers will impact the market rapidly. By 2014 it forecast that physical goods mobile payments market will be worth $100 billion and that in developing markets SMS driven money transfer services are the main driver, increasing at a rate of 30 percent per annum.

The top three regions for mobile payments — Far East and China, Western Europe and North America — will represent nearly 70 percent of the global mobile payment gross transaction value by 2014.

The report also says that new services and schemes are being actively established by vendors, retailers, merchants, content providers, mobile operators and banks. However, in some areas like NFC, greater collaboration will be required to establish a widely accepted business model that translates easily into tangible services.