Mobile Funds Transfer to Generate Almost $8 Billion in Mobile Operator Revenues by 2012, Finds ABI Research

Tue Jul 10 07:16:00 2007

LONDON--(BUSINESS WIRE)--By enabling subscribers to send and receive money using their wireless phones, mobile operators have the opportunity to bring local banking services to millions of people around the world. These services could also deliver operators a valuable new revenue stream. According to a new study from ABI Research, the market for mobile fund transfers will grow to a revenue opportunity of nearly $8 billion for mobile operators by 2012, from just over $10 million last year.

Mobile networks offer a number of advantages over existing fund transfer offerings, but most convincing is the high level of adoption and reach of wireless services both geographically and demographically. “Mobile operators can tap into and extend long-standing international and national demand for fund transfers around the world by leveraging the networks and handset infrastructure they already have in place to revolutionize access to banking services,” says Jonathan Collins, senior analyst at ABI Research.

However, mobile operators cannot do this alone. The requirement of a banking license to offer such services in most countries means that mobile operators need to partner with established banking institutions. Partnerships are encouraged by offering services institutions an effective way to reach new as well as existing customers. ABI Research believes that these partnerships, once forged between operators and the financial sector to target mobile fund transfer, will also provide a foundation for a host of additional joint offerings. Meanwhile, startups focused on delivering mobile fund transfers to mobile subscribers have also emerged to drive mobile fund transfer adoption.

While enabling national and even localized fund transfers delivers a good business case for operators, it is in the realm of international payments or remittances that the bulk of the market opportunity lies. Large sums already flow from workers who moved overseas but send payments back to family members and friends in their home countries. Targeting these transactions, a number of operators and international financial institutions are already offering or developing an international capability for mobile fund transfers.

In the new study, "Mobile Money Services" (http://www.abiresearch.com/products/market_research/Mobile_Money_ Services), ABI Research examines the potential value to mobile network operators, banking institutions and specialized start-ups of providing financial services over a cellular wireless infrastructure as well as the key requirements for market deployment and sustainability. The report also includes analysis of existing fund transfer market. It forms part of the Mobile and Contactless Commerce Research Service (http://www.abiresearch.com/products/service/Contactless_Commerce_ Research_Service), which includes Research Reports, Research Briefs, Market Data, Online Databases, ABI Insights and analyst inquiry support. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services, and market reports in broadband and multimedia, RFID and M2M, wireless connectivity, mobile wireless, transportation, and emerging technologies. For information, visit www.abiresearch.com, or call +1.516.624.2500.