Billion by 2009, Research Group Says
Credit Pacific Service Union By Peter Shout
With the US and European equity markets taking another hit yesterday and with the problems in the credit market, the carry trade unwind is now fully rearing its head.
Credit First Service Union According to TowerGroup, the Internet and Mobile Micropayments
market will grow from $2 billion
to $11.5 billion by 2009, a 23% compounded growth rate.Visit our
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Card Credit Discover Service Aug 3, 2004 (AXcess News) Needham MA - According to TowerGroup,
the Internet and Mobile Micropayments market will grow from $2
billion to $11.5 billion by 2009, a 23% compounded growth rate.
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Credit Public Service Union The dot-com bust spelled the end of several early attempts to
launch alternative currencies and payment methods for small online
transactions - including high-profile start-ups like Beenz and
Flooz. However, discussions around the potential for
"micropayments" (transactions under $5) in the mobile, Internet and
point-of-sale spaces continue, with an emphasis on how to minimize
processing and customer service costs to ensure the profitability
of very low value transactions.New research from TowerGroup finds
that several positive trends are now beginning to converge,
spurring both the use of and demand for mircotransaction
engines. While demand is still
concentrated in a few hot areas of content development, it is
laying the foundation for more rapid and tangible growth.
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Card Credit Processing Service "As technology has advanced so have customer expectations and
networks, and these factors are setting the stage for expanded
micropayments growth across the mobile, Internet and physical
channels," said Ed Kountz, senior analyst in the Emerging
Technology Solutions practice at TowerGroup and author of the
research. "By 2009, TowerGroup expects the total market for
Internet and mobile micropayments in the US to increase 23%
(compound annual growth rate) to $11.5 billion in revenues, up from
just over $2 billion in 2003."Advertisement
Center Credit Service Union At present, the total market for micropayments remains small in
comparison to the multi-trillion-dollar consumer payments market.
In 2003, the total value of Internet micropayment transactions in
the US was $1.9 billion -- driven primarily by media and Internet
publishing services, and digital
music (e.g., iTunes), and other
audio services. Mobile micropayments sales in the US (such as for
content like ringtones) accounted for $0.15 billion in 2003.
Card Credit Service Wireless Kountz noted that over the next five years, TowerGroup expects
to see heavy competition in the micropayments space, with a handful
of leading transaction types finally joining subscriptions in
taking a significant share of this fluid market space.
Credit Security Service Union "Direct-to-bill will continue to proliferate in the mobile
space, aggregation-based solutions will gain traction for some
types of Internet content, and prepaid will round out the payment
options across other mobile and e-content environments. Financial
institutions should begin considering how these changes will impact
their payment businesses, and determine how to build out
alternative payment services as extensions of existing products for
certain emerging groups," he said.AXcess News will be reporting on
any new market trends related to this story. Members should watch
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