Mobile phones have increasingly become tools that consumers use for banking, payments, budgeting, and shopping. Given the rapid pace of developments in the area of mobile finance, the Federal Reserve Board began conducting annual surveys of consumers’ use of mobile financial services in 2011. This 78-page report, “Consumers and Mobile Financial Services” (March, 2015) examines trends in the adoption and use of mobile banking, payments, and shopping behavior and how the emergence of mobile financial services affects consumers’ interaction with financial institutions.
U.S. Mobile Payment Market to Top $200 Billion by 2015, Says Research Report
A recent report from Aite Group forecasts that U.S. mobile bill payments will reach more than $200 billion in 2015.
Aite Group interviewed more than 60 companies in the Fall of 2010 and produced a 65 page report that defines and segments the mobile payment industry, and includes an analysis of the competitive and market trends.
Each one of the multiple categories of mobile payments defined in the report will experience double-digit growth, with mobile payments accounting for US$214 billion in gross dollar volume by 2015, up from US$16 billion in 2010–a 68% compounded annual growth rate (CAGR) between 2010 and 2015.
The report references the following companies: Allstate, Amazon, American Express, Apple, AT&T, Bango, Bank of America, Barclays, Bill2Mobile, BlackBerry, Bling Nation, BOKU, Brink’s, C-Sam, Cashedge, Cellfire, Chase, Chase Paymentech, Cimbal, ClairMail, coupons.com, Coupons Sherpa, Visa’s Cybersource, Device Fidelity, Diebold, Discover, Eagle Eye Solutions, eBay, Euronet, Facebook, First Data, FIS, Fiserv, Foursquare, Gemalto, Global Payments, Google, Gowalla, Green Dot, Groupon, Harland Financial Services, Heartland Payment Systems, Hipcricket, iLoop Mobile, Inside Contactless, Intuit, Jack Henry/iPay Technologies, Kubra, MasterCard, mFoundry, Mobile Coupons, Mocapay, MoneyGram, Monitise Group, mopay, MyWebGrocer, NCR, NetSpend, Nokia, Oberthur Technologies, Obopay, OfferIQ, Online Resources, PayPal, Plastyc, Pyxis Mobile, Research-in-Motion (RIM), Roam Data (Ingenico), Roamware, Rocketbuxx, SK C&C USA, Square, Starbucks, Sybase, T-Mobile, Tetherball, 3i Infotech, Tier Technologies, TransferTo, TSYS, Twitter, U.S. Bank, VeriFone, Verizon, Vesta, Visa, ViVOtech, Waspit, Way Systems, Western Union, Wincor Nixdorf, WirelessLoyalty, Xipwire, Yelp, and Zong.
More information: Aite Group Mobile Payment Report.
Source: Aite Group
VeriFone Acquires Point-of-Sales Terminal Company, WAY Systems
VeriFone Systems, Inc., a worldwide leader of secure payment services to businesses, today announced that it has bought WAY Systems, Inc, a company that manufactures mobile point-of-sales terminal and gateway solutions for merchant. According to VeriFone, the acquisition will not affect the company’s 2010 financials. The pricing detail of the transaction is an upfront payment of $6 million and then an additional $3 million within one year.
It took WAY Systems about 5 years in the payment processing business to build a customer base of more than 26,000 businesses that are utilizing their mobile terminals and gateway products. VeriFone will be taking control over customer support services for WAY System’s customers and will be adding them to their PAYware Connect Gateway platform. VeriFone will also offer WAY System’s 24/7 support to all customers currently using their mobile services.
WAY has developed many relationships with resellers and has intellectual property rights and several patents in Europe, U.S. and China that will help take VeriFone’s mobile platform to the next level. One of the substantial patents WAY has been granted has to do with how the mag-stripe reader connects to mobile phones and other mobile device.
Jeff Dumbrell, the executive vice president of VeriFone, was glad that they have added WAY Systems employees and customers as part of VeriFone.
Source: VeriFone