Global mobile payments (m-payments) are expected to account for US$1 trillion in value in 2017, according to IDC.
Asia-Pacific markets are expected lead in the m-payments markets as emerging nations come online for the first time and use smartphones more prolifically.
“Smartphone adoption has grown much more rapidly than general banking and card adoption in the Asia-Pacific region,” said Shiv Putcha, associate research director, and AP Connected Consumer Marketplaces at IDC Asia/Pacific. “Recent focus on financial inclusion policies in various countries have given a boost to connecting the unbanked. This phenomenon, coupled with the innovation of semi-closed wallet schemes linked to bank accounts, has given a major boost to mobile payments in Asia-Pacific.”
More mature markets in the Asia-Pacific region, such as Australia, Hong Kong and Singapore, will remain card payment leaders and view m-payment solutions with integrated near field communications (NFC) technology as a tool for replacing cards that need to be physically swiped.
However, as credit and debit card adoption is low in emerging Asian economies like China, India and Indonesia, they will be more likely to use mobile wallets linked to their bank accounts.
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