170 Million Mobile Subscribers Will Make Domestic Person To Person Payments in 2011

If you think mobile banking is becoming popular, consider the market for mobile-enabled person-to-person payments. Nearly three times as many consumers globally will use their mobile phones to make domestic person to person payments than those who will use their mobile phones to conduct traditional banking functions by the end of 2011, according to an ABI Research forecast.

“The developing world is embracing mobile domestic person to person payments with enthusiasm wherever they are offered,” says senior analyst Mark Beccue. “ It is becoming the first financial service for previously ‘unbanked’ people, and may make a real contribution towards lifting them out of poverty.”

In addition to gaining an ideal introductory financial service, banks – with the help of Mobile Network Operators (MNOs) – are extending their reach. Traditional banks have had a hard time supporting bricks-and-mortar operations in many developing regions. Mobile gives them a chance to extend their banking services without having to build major infrastructure.  

There has to be an interface between a number on a screen and the real, cash economy. So in many such regions, MNOs’ retail agents are becoming “stored value operators,” and conduits for local bankers.

However there are some impediments to this market’s development. “Growth of mobile financial services in the developing world is sometimes hindered by regulatory barriers,” says Beccue. “Every country has different banking rules. Some are more sophisticated, some less. Whoever is trying to put such a financial ecosystem together may have a lot of hoops to jump through. But they are increasingly successful despite the obstacles.“

ABI Research’s “Mobile Banking and Funds Transfer” study examines the ways mobile financial services such as mobile banking, mobile domestic person-to-person payments and mobile international remittance will be used, the players within the space, who’s hot and who’s not, and what MNOs and financial services providers can do to take advantage of these opportunities. It includes forecasts for mobile banking, domestic person-to-person money transfers and international remittances.

It forms part of ABI Research’s Mobile Money Research Service.

ABI Research provides in-depth analysis and quantitative forecasting of emerging trends in global connectivity. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advise thousands of decision makers through research and advisory services in eight key practice areas. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.