Money transfers to become hottest mobile app, says Gartner

Interest in mobile banking services is accelerating worldwide

Money transfers and payments over mobile phones will be among the top 10 most important mobile applications by 2012, market research company Gartner said on Wednesday.

Mobile money transfers top the list, beating out location-based services, search and browsing. Money transfers are already popular in a number of developing countries, and will continue to attract more users, according to Sandy Shen, research director in Gartner's Mobile Devices and Consumer Services group.

"It's a way for users who don't have a bank account to get access to financial services," said Shen.

Mobile payments came in sixth place on Gartner's list and will be used in both developed and developing markets, according to Shen.

In developing markets, mobile payments aren't about offering something that hasn't been available before, and in the developed part of the world it's about offering more convenient ways of paying, she said.

The use of NFC (Near Field Communication), which is in seventh place on Gartner's list, will be part of that. The technology lets users pay for goods by waving their NFC-enabled handset in front of a reader.

Mobile phones will also be used to authenticate online transactions, by sending one-time passwords to the phone, according to Shen, or creating them directly on the phone.

Interest in mobile payments, money transfers and other related services is growing worldwide. Consumers in the U.S. and Canada will be able to keep track of spending via SMS (Short Message Service) alerts, Visa said on Tuesday.

Mobile phones will be used to authenticate online transactions, MasterCard said on Monday. Also, mobile payment services were announced in Brazil, Cambodia and the U.K. this week.

The number of worldwide mobile phone subscribers makes for an attractive target. The mobile phone is also a device that users tend to always carry with them, according to John Ahlberg, spokesman at Todos, which has launched an iPhone application for authenticating transactions and signed a deal with smart-card maker Oberthur Technologies.

However, paying or transferring money with a mobile phone comes with a set of challenges, including both real and perceived security threats, according to Shen.

The fact that the data is transmitted wirelessly adds a new level of risk, compared to traditional card payments, she said.

Users must feel comfortable with using the mobile phone for mobile payments to become a success, according to Ahlberg.

The other seven applications on Gartner's Top 10 Consumer Mobile Applications for 2012 list are in order of appearance: location-based services, search, browsing, health monitoring, advertising, instant messaging and music.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags GartnermoneyNear Field Communicationsmobile commercepayment gateways

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?