Mobile operators could be handling US$142 billion in m-commerce revenue by 2020 if the barriers currently facing carrier-driven payments are overcome, says a report sponsored by global mobile commerce enabler, DOCOMO Digital.

The report, which was independently conducted by Ovum Research, claims that if operators, vendors and regulators don’t work together to clear these barriers, carrier-driven payments as a share of total m-commerce spend will slump from 4.1% in 2014 to 0.8% in 2020. The report suggested that the removal of key barriers, requiring a mindset change from all stakeholders, and the use of education and safeguards, will help mobile operators secure bigger stake in the future of m-commerce.

Hiroyuki Sato, CEO of DOCOMO Digital

Hiroyuki Sato, CEO of DOCOMO Digital, said: “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. Mobile commerce is very important to operators but if the barriers remain in place, they could lose out on a multi-billion dollar market.

Our research shows that operators, merchants and regulators must work hand in hand to address the issues, while 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.”

The report, subtitled “Mindset changes and stakeholder collaboration are needed to let carrier-billed payments reach their full potential”, sough to establish why carrier-driven payments will make up a decreasing share of global m-commerce revenue by 2020, and what stakeholders can do to reverse this trend. The author of the report, Guillermo Escofet, is a principal analyst of Digital Media at Ovum Research.

Guillermo Escofet, principal analyst of Digital Media at Ovum Research.

DOCOMO Digital brings together key assets and capabilities to enable mobile commerce for mobile network operators, digital and real-world service providers, merchants and regulators. In a nutshell, it provides expertise, technology and operational services to bring to life next-generation mobile commerce platforms.

To request a copy of the report, go to: www.ovum.com/category/white-paper

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