Juniper: Digital Payment Soaring in Popularity
HAMPSHIRE, ENGLAND — A new analysis of the global mobile payments opportunity forecasts by 2013, 2.1 billion mobile subscribers will “pay by mobile” for digital goods downloaded to their mobile phones.The analysis was published August 5th by Juniper Research, which defined digital goods as music (ringtones and full tracks), tickets, TV, user-generated content, infotainment, games and any other content bought by phone and delivered to the phone.
Juniper’s region-by-region analysis revealed there is a significant growth opportunity not only for mobile payment systems, software, support and consultancy services vendors, but also for mobile operators to increase their average revenue per subscriber as transaction frequencies accelerate.
“Many digital content goods and services are becoming basic ‘must haves,’ particularly in the sub-35 age group,” report author Howard Wilcox said. “Devices like the iPhone — even in its 3G incarnation — are undoubtedly contributing to consumer awareness and usage of mobile music services. People who are 15 to 20 [years old] today will expect to buy directly with their phones and will drive this market over the next few years.”
Juniper analysts expect mobile subscribers to make at least two payment transactions per month for digital goods by 2013. Nearly half of all mobile phone users will have bought digital goods at least once with their phones by that year, the report also noted. In addition, the two regions that are expected to lead the mobile payment charge — Western Europe and the Far East (including China) — will account for more than 50-percent of the total digital goods gross transaction market value by 2013.
“Even though typical transaction sizes will remain in the $3 to $5 bracket, a sufficient number of users will be using their mobiles to buy music, games, tickets, infotainment and the other digital goods sufficiently often to see gross transaction value grow nearly seven fold by 2013,” Wilcox said.
The report, for which Juniper analysts interviewed 37 senior executives across a wide range of vendors and operators, also examined mobile Web-based purchases of physical goods ranging from gifts to household goods and electronics.
Whitepapers and further details about the study, “Mobile Payment Markets: Digital & Physical Goods 2008-2013,” are available free at JuniperResearch.com.