Mobile Commerce: Dealing with the Devil in the Details

February 13, 2006

Abstract

San Francisco, CA, USA February 13, 2006

Mobile Commerce: Dealing with the Devil in the Details

Celent predicts that mobile phones will become a more prominent vehicle for low value payments on a global basis, with global mobile commerce revenues surpassing US$24 billion in 2006 and $55 billion by 2008.

Mobile carriers and banks are now coming together based on the same factors that have kept them apart in the past洋obile adoption, technology standards, changing industry dynamics, and new business interests. This will be the year of dealing with all the little devils in the details that have come as a result of new, disruptive business models that occur when a mobile medium is used for commerce. In the US, mobile commerce will no longer be just about digital content. The mobile phone will become a "wallet," allowing users to purchase products with their phone. The technology is already well on its way in Asia, and Celent predicts the mobile wallet will debut in the US in 2007.

Now, with the US mobile commerce market alone approaching $3 billion in the coming year, content providers, carriers, and handset makers are coming to terms with two unique and disruptive aspects associated with mobile commerce:

  • Unlike a desktop computer, the mobile device is independent of time and place.
  • Portability and accessibility can transform the mobile device into a wallet that can be accepted at the physical point of sale.

In a new report, , Celent explores the burgeoning market for mobile commerce. "Throughout the globe, the mobile phone is becoming a fixture of everyday life as a source of communication, entertainment, and, increasingly, commerce. Carriers, card associations, device manufacturers, and banks are trying to strike the right economic balance that will allow mobile phones to become a payment form factor at the digital as well as the physical point of sale. In the North American and European markets, telcos and banks may finally become bedfellows with the help of third party technology platforms agnostic to all parties," says Dan Schatt, author of the report and senior analyst at Celent. "The advent of near field communications technology standards will certainly contribute to the growth of low value payments through mobile phones and expand the mobile commerce market for all parties."

A table of contents is available online.

 

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

San Francisco, CA, USA February 13, 2006

Mobile Commerce: Dealing with the Devil in the Details

Executive Summary 3
From Ringtones To Radishes 6
  The Building Blocks of M-Commerce 7
Mobile Commerce Defined 16
  Bandwidth Battle Lines 20
Digital M-Commerce Models 23
Understanding Who Wants What 30
  Handset Makers 31
  Carriers 33
  Banks 35
  Bringing Down The Walled Garden 36
Bridging Physical/Digital Divide 40
  Near Field Communications (NFC) 42
Learning From DOCOMO 51
Regional Movers And Shakers 53
  Utiba And G-Cash 53
  QPass 56
  Crisp Wireless 58
  C-Sam 60
  UPaid 62
Conclusion 64
Celent Methodology 66

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