Several key trends will keep the $62 billion American market for alternative payments dynamic through the next five years, with emerging mobile payment options ranking as the most important, according to market research publisher Packaged Facts.
In its report, "Alternative Payment Systems in the U.S., 2nd Edition," Packaged Facts noted that alternative payments are consumer-to-business purchases and person-to-person (P2P) payments that are entirely electronic and predominantly conducted over the internet or mobile phones.
Packaged Facts reveals total U.S. dollar volume of online alternative payments rose 25 percent to reach $62 billion in 2010, more than double the level seen in 2006. The total U.S. alternative payment market is expected to reach $127 billion by 2015.
"The mobile payments market is set to explode, perhaps as early as this year," said David Sprinkle, research director and publisher of Packaged Facts. "PayPal alone announced $750 million in total mobile payment volume worldwide in 2010 and expects to reach $2 billion for 2011. Though PayPal may be the only player recording that level of mobile payments, several major initiatives either rumored or announced indicate that interest in mobile payments is hitting critical mass. The old school payments paradigm will start losing more and more of the playing field."
Packaged Facts singles out three mobile payment announcements or possible launches as most significant:
- Google, in partnership with point-of-sale (POS) mobile device makers and mobile payments enablers VIVOtech and Verifone, is expected to launch a mobile payments trial in several large cities in the summer of 2011, bringing Google Checkout out of cyberspace and into brick-and-mortar retail.
- Wireless carriers AT&T, T-Mobile, and Verizon formed the Isis partnership with Discovery Financial and Barclays Bank to combine mobile payments and wireless carrier billing into a retail mobile payments solution.
- Apple is rumored to be working on its own iPhone and mobile payments platform based in part on its popular iTunes application and service. The company filed several software patents related to mobile payments, shopping, POS, and point-of-purchase (POP) that hint of a possible launch in 2011 or 2012.
In addition to the impact of mobile payments, overall growth will be driven both by total number of active accounts, and by total spending per account as more and more consumers use alternative payments to shop at a range of traditional and virtual merchants. Growth will also be driven in part by a strengthening economy, resulting in generally higher consumer spending.
Report Information:
https://www.packagedfacts.com/Alternative-Payment-Systems-2739664/.
((Comments on this story may be sent to newsdesk@closeupmedia.com))
No comments:
Post a Comment