News

Study: 1 in 5 handsets will have a mobile wallet by 2018

May 23, 2014

Twenty percent of mobile phones will have mobile wallet capability by 2018, new a new report from Juniper Research says. This compares to less than 10 percent at the end of 2013.

According to the report, “Mobile Wallets: Strategies for Developed and Developing Markets 2014-2019,” growth will be driven by two wallet models:

• In emerging/developing markets, stored value accounts are enabling first-time financial access for unbanked individuals; the report anticipated a surge in deployments across sub-Saharan Africa, developing Asia and Latin America.
• Across North America and Western Europe, wallets are expected to feature contactless payment functionality. The sector is forecast to receive a boost both from the anticipated launch of an Apple iWallet later this year and from host card emulation-based NFC services.

More than one-third of mobile wallets worldwide — and more than 50 percent of those in developed markets — will feature contactless payment by 2018.

The report also said that the mobile wallet would be bolstered by high-profile person-to-person payment initiatives, which will be integrated into customers’ existing mobile banking or payment apps.

“While P2P mobile payment services have struggled to gain traction in developed markets, financial institutions are keen to commit to them as they can serve as an attractive value-add to consumers in an increasingly cashless society,” said report author Dr. Windsor Holden.

The free white paper, "Smart Phone – Smart Wallet – Smart Cash," is available to download from the Juniper Research website together with further details of the full report.