Mobile payment market growth "slower than expected"
The mobile payment market is growing but at a slower rate than expected, Gartner has said.
According to the research body, the number of users of the technology will rise to more than 141.1 million worldwide this year.
In developing countries, Short Message Service and Unstructured Supplementary Service Data is expected to continue leading the market, although analysts added that "favourable conditions" for the industry in emerging economies has not driven a rapid expansion in the sector.
"Many service providers are yet to adapt their strategies to local requirements and success models from Kenya and the Philippines are unlikely to be translated to other markets," research director at Gartner Sandy Shen explained.
"High penetration of mobile devices and low banking penetration" were the conditions the expert felt were advantageous for the mobile payment sector in these countries.
Meanwhile, Wireless Application Protocol, application downloads and mobile commerce is expected to dominate the market in developed countries like the UK.
Despite the projections that growth will be slower than it could be, Gartner still predicted a 38.2 per cent rise in mobile payment users in the 12 months to December compared with last year.
The British Retail Consortium recently reported that the number of customers using their phones to search shopping sites saw a 27 per cent annual increase in the second quarter of 2011.