To say the mobile money market is growing would be an understatement of epic proportions. Mobile is exploding at a rate unlike anything we've seen in the payments industry, at least since the advent of eCommerce around the turn of the century.
According to a report issued by the research firm MarketsandMarkets, mobile money - a sector that includes mobile payments, banking remittance and commerce - is going to grow by over 2000 percent in the next five years. The study found that the industry is valued at $13.8 billion in 2013, a number that is expected to jump to $278.9 billion in 2018.
This number is astonishing at first glance, but it makes sense when you consider the tremendous advancements made in the mobile realm in recent years. Today, virtually everyone has a mobile device, and most people have traded in old-fashioned clunkers of the flip variety for smartphones. Businesses are aggressively migrating from desktop computers to smartphones and tablets, so a number of B2B payments are being made in a mobile environment.
"The ubiquity of mobile phones and the major chunk of people who have no formal access to banks are the key drivers for the mobile money market," says a MarketsandMarkets press release. "Mobile Money will offer a rewarding opportunity in terms of revenue for the people in its ecosystem both in the near future and over the long term. While talking about its ecosystem, it constitutes many industries such as mobile network operators, banks and financial institutions, payment processors, mobile money platform providers, handset manufacturers, etc. because of its fragmented nature of the market."
Despite the number of innovative payment solutions, vendors still must follow basic processing principles. Those conducting transactions with other companies should ensure they have a payment gateway installed to accept p card payments.