Mobile payments competing with cards, checks

The Philippine Star – MANILA, Philippines – Mobile payments will make up 15 percent of all cashless transactions globally, reducing further the use of checks and plastic money or credit cards.

The World Payments Report 2011 also indicated that mobile payments would grow globally from 4.6 billion to 15.3 billion transactions between 2010 and 2013 – at a rate of 48.8 percent per year.

The Royal Bank of Scotland, the European Financial Management Association (EFMA), and Capgemini are the co-authors of the payments report.

The non-profit EFMA encourages research and disseminates knowledge about decision-making in all areas of finance, and is made up of academics, practitioners and students from Europe and the rest of the world interested in the practice of sound financial management techniques. Operating in 40 countries but headquartered in Paris, France, Capgemini is a global consulting firm that emphasizes people-centered approaches through technology.

The World Payments Report 2011 further reported that cards remain the preferred method of non-cash payments, with a market share of more than 40 percent in most markets. In contrast, check usage around the world accounted for just 16 percent of all non-cash transactions in 2009, and it is expected to shrink on an annual basis.

According to the research firm Gartner, in just one year the value of payments made via mobile devices worldwide has increased 75.9 percent, or from $48.9 billion in 2010 to $86.1 billion in 2011.

The total value of the mobile payments market is forecast to reach $670 billion by 2015.

In fact, three million impoverished people living in Africa and South Asia will gain access to a cashless banking experience, with the help of the United Nations Development Programme (UNDP).

Read complete article on Philippine Star online.