LONDON, July 19, 2012 /PRNewswire/ -- The European market for mobile (m)-financial services is characterised by a relatively high uptake of m-banking services, the emerging adoption of m-payments, and an opportunity for long-term growth in international m-remittances (mobile money transfers).
New analysis from Frost & Sullivan (http://www.ipcommunications.frost.com), Mobile Financial Services - A Technology and Market Analysis forecasts a fourfold growth in the number of European m-banking users over the next 6 years, and expects that the value of transactions of mobile payments will increase to euro 72.33 billion by 2018.
"The European m-financial services market is poised to grow due to the proliferation of smartphones," says Frost & Sullivan Industry Analyst Mario Fernandez. "In 2011, sales of smartphones accounted for more than 50 per cent of the total handset sales in the Nordics and Western Europe, and CEE countries are rapidly catching up."
From a technology perspective, SMS-based services currently dominate the market. However, Frost & Sullivan believes that Internet-based applications will be increasingly important in spurring growth of the m-banking and m-payments in the short and medium term. In countries, where the contactless infrastructure is developing, near field communication (NFC) technology will play a fundamental role in the expansion of the m-payments market in the long term.
"Collaboration among participants of the telecom, financial services and IT industries will lead to further growth in the m-payments market," notes Fernandez. "Similarly, a more proactive approach from banks to exploit the mobile channel will stimulate the growth of the m-banking market."
However, existing business models and the high satisfaction of end users with the current means of payments or services delivered through the bank branches are issues that negatively affect the development of m-financial services. In addition, mobile financial services are presently sold under the premise of 'one size fits all' and their value proposition is vague. As a result, end users tend to prefer traditional channels, such as bank branches or online banking, than the mobile one.
"Service providers and technology vendors should work together in designing highly customized m-financial services that focus on customer convenience," concludes Fernandez. "Leveraging the unique advantages of mobile devices together with higher customization seems a viable alternative to deliver true value to end users."
Mobile Financial Services - A Technology and Market Analysis provides an insight of the latest trends across the European mobile financial services (m-payments and m-banking) market along with strategic recommendations to key stakeholders. In addition to examining the challenges telecom operators and financial institutions face in implementing mobile financial services in Europe, the study considers the emergence of dedicated technical solutions, the omnipresence of mobile devices, and new usage.
If you are interested in more information about this study, please send an e-mail with your contact details to Joanna Lewandowska, Corporate Communications, at email@example.com.
Mobile Financial Services - A Technology and Market Analysis (9845-63) is a part of the Market Insights – ICT subscription, which also includes research such as Opportunities in the Low Value Cash Market, How to Win the Payment War: A Payment Processing Platform Outlook, Cloud Computing in the European Banking Sector, ICT Solutions for the European Insurance Market, among others. These Market Insights are part of Frost & Sullivan Growth Partnership Service.
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SOURCE Frost & Sullivan