Mobile operators could lose billions by 2020

Barriers with which carrier-driven payments are marred are costing mobile operators huge amounts of money, new research by DOCOMO Digital and Ovum Research says.

According to the report, the market share that carrier-driven payments have in the entire m-commerce industry will fall from 4.1 per cent in 2014, to 0.8 per cent by 2020, unless these barriers are removed.

Translated into money, that means $142 billion in losses in the next four and a half years.

The report is fairly vague on what these barriers really are, but says that they require a “mindset change from all stakeholders, and the use of education and safeguards”.

"Phone penetration of the global adult population is reaching parity and smartphones will soon be the ubiquitous connected device, so it makes sense that more and more people will want to use their mobile device to pay for goods and services,” says Hiroyuki Sato, CEO of DOCOMO Digital.

“Mobile commerce is very important to operators but if the barriers remain in place, they could lose out on a multi-billion-dollar market.”

The report also says teamwork between operators, merchants and regulators is key to overcoming these barriers. It also says that m-commerce spend will actually overtake the total revenue of operators by 2020.

“We already have the technology to create interoperable solutions that enable all stakeholders to participate in the future of m-commerce but it's important that we work together to ensure consumers actually benefit and use them," Sato added.

Image Credit: Nito / Shuttersotck