Alpha Hunters: The Mobile Payments Opportunity

Jun 13th, 2012 | Filed under: Alpha Hunters, Alpha Strategies, Private Equity, Today's Post, Venture capital | By:
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The mobile payments market is one of the fastest growing segments of the digital economy.  Research by Gartner shows that the total value of global mobile payments will surpass US$171.5 billion in 2012, a 61.9 percent increase from 2011 values of US$105.9 billion.  The research firm Yankee Group develops on this by predicting the mobile payments market will transact over US$1 trillion by 2016.

Much of this growth has been attributed to the fact that the internet and mobile telecommunications have matured and become more unified.  Bearing in mind the world population is 7 billion, it’s astonishing to consider that 5.9 billion mobile-cellular subscriptions exist (meaning that 87% of the world’s population have a mobile phone).   These devices have also become more ubiquitous and more capable, twice as many people in the world now access the internet through their phones than through fixed-line broadband.


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Author Bio:
Vikas Shah is Founder of the consultancy Thought Strategy and CEO of Swiscot Group (a diversified trading firm). Vikas writes and publishes Thought Economics, a leading journal where he interviews some of the most influential individuals in the world. He is a respected commentator and analyst on global issues, finance and economics and a non-executive to a number of philanthropic organisations worldwide. You can follow him on twitter @MrVikas.

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  1. […] Originally posted at: […]

  2. New payment methods create new security issues, Today’s consumers want their smartphones to do everything. Electronic payments are no exception. But while online payments are nothing new (PayPal was founded in 1998), there’s an increasing clamor for (what else?) smartphone digital payment systems. As digital payments move into the mobile realm, new business models have appeared — as well as new security concerns.
    Every bank wants to get in on the action with their own paperless person-to-person payment system. PNC kicked off the trend in January 2010. This was the first major bank to allow customers to send money without revealing sensitive data like routing and account numbers. Rather, the system worked in a similar manner to PayPal; A customer’s information was based on their email address or phone number.

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