Mobile Money Transfer Market Stands to be a Big Earner

Transferring funds safely and securely using mobile phones has the potential to revolutionize the way people around the world utilize their money, and it holds the promise of driving great social benefits in the developing world. But perhaps its most important attribute lies in the short term with mobile operators gaining another opportunity to draw revenue from existing network investments. According to a recent study by ABI Research, the mobile fund transfer market will see a near $8 billion revenue opportunity for mobile operators by 2012 — from just over $10 million in 2006.

This past summer has seen big changes in what was a small niche market, with Obopay signing separate partnerships with Citibank and Verizon Wireless. In addition, PayPal, Amazon, and Google have turned their attention to offering mobile payments.

“Early US and European mobile fund transfer services have focused on limited demographics –primarily students and their family benefactors — but there remains enormous potential for developing a user base through key partnerships, combining mobile operators and financial services companies,” says Jonathan Collins, ABI Research principal analyst.

The ability to transfer funds between accounts, customers, and retailers in a simple manner — using mobile handsets and the wireless network — represents a significant prospective market for mobile operators, financial services organizations, governments, retailers, and end users.

End users understandably are cautious about who they trust to handle their money, so established banks and mobile operators will help to provide much of the security that new users look for in mobile transfers. “This places mobile operators who are willing to deliver money transfer applications at the forefront of a lucrative range of applications,” adds Collins.

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