SOURCE: Packaged Facts

Packaged Facts

June 20, 2011 09:37 ET

Mobile Payments Are Driving Force in $62 Billion U.S. Alternative Payment Market

NEW YORK, NY--(Marketwire - Jun 20, 2011) - Several key trends will keep the $62 billion American market for alternative payments dynamic through the next five years, with emerging mobile payment options ranking as the most important, according to Alternative Payment Systems in the U.S., 2nd Edition by market research publisher Packaged Facts. Alternative payments are consumer-to-business purchases and person-to-person (P2P) payments that are entirely electronic and predominantly conducted over the internet or mobile phones.

Packaged Facts reveals total U.S. dollar volume of online alternative payments rose 25% to reach $62 billion in 2010, more than double the level seen in 2006. The total U.S. alternative payment market is expected to reach $127 billion by 2015.

"The mobile payments market is set to explode, perhaps as early as this year," says David Sprinkle, research director and publisher of Packaged Facts. "PayPal alone announced $750 million in total mobile payment volume worldwide in 2010 and expects to reach $2 billion for 2011. Though PayPal may be the only player recording that level of mobile payments, several major initiatives either rumored or announced indicate that interest in mobile payments is hitting critical mass. The old school payments paradigm will start losing more and more of the playing field."

Packaged Facts singles out three mobile payment announcements or possible launches as most significant:

  • Google, in partnership with point-of-sale (POS) mobile device makers and mobile payments enablers VIVOtech and Verifone, is expected to launch a mobile payments trial in several large cities in the summer of 2011, bringing Google Checkout out of cyberspace and into brick-and-mortar retail.

  • Wireless carriers AT&T, T-Mobile, and Verizon formed the Isis partnership with Discovery Financial and Barclays Bank to combine mobile payments and wireless carrier billing into a retail mobile payments solution.

  • Apple is rumored to be working on its own iPhone and mobile payments platform based in part on its popular iTunes application and service. The company filed several software patents related to mobile payments, shopping, POS, and point-of-purchase (POP) that hint of a possible launch in 2011 or 2012.

In addition to the impact of mobile payments, overall growth will be driven both by total number of active accounts, and by total spending per account as more and more consumers use alternative payments to shop at a wider range of traditional and virtual merchants. Growth will also be driven in part by a strengthening economy, resulting in generally higher consumer spending.

Alternative Payment Systems in the U.S., 2nd Edition presents an in-depth examination of the U.S. alternative payments arena. The report quantifies the size and growth of the market and places trends in the context of both the business-to-consumer (B2C) ecommerce market and the total consumer payments spectrum including plastic and electronic (online) payments. Major competitors and noteworthy upstarts are profiled, along with a focused analysis of consumer payment patterns, preferences, and demographics.

For further information, please visit: https://www.packagedfacts.com/Alternative-Payment-Systems-2739664/.

About Packaged Facts -- Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer goods and retailing, foods and beverages, demographics, pet products and services, and financial products. Packaged Facts also offers a full range of custom research services. To learn more, visit: www.packagedfacts.com. Follow us on Facebook, LinkedIn and Twitter.

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