BWCS - Mobile Proximity Payment Services

Mobile Proximity Payment Services

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MPP Services - Lessons from Korea and Japan

Mobile commerce has been through a short, sharp shock. 2002 saw banks and mobile operators switch off mobile payment trials and several application developers fold. However, the first half of 2003 has seen hope scurrying back to this sector and among the most innovative services to launch this year have been those for Mobile Proximity Payments.

Many believe that this subset of m-commerce, which is defined as paying for goods and services at a retail outlet or vending machine using a mobile handset instead of a credit card, cash or contactless smart card, will be one of the most important ways for mobile operators to generate extra revenue and tie in user loyalty in the future.

While the rest of the world struggles for standards and scratches around for business models, Korea and Japan have taken an impressive lead in developing the market for such services. With the mobile industry looking on BWCS investigated how far these two countries have progressed in developing MPP services and analysed how quickly such services will grow globally.

This one-off Insight report provides an in-depth examination of the current state of the market for MPP services and sets out the factors that will drive them forward as well as outlining possible barriers to take-up.

The report seeks to answer the following questions:

What are the main drivers and barriers for MPP services?
What are mobile operators doing to address this market?
Which technologies are being employed to introduce this type of service?
What is the value chain for MPP services?
How much of the global market for electronic transactions will MPP services take in the future?
How far ahead of the rest of the world are Korea and Japan and why?
Which countries are likely to lead the chasing pack behind Korea and Japan in developing MPP services?
How large is the future market for such services in Japan and Korea and the rest of the world? And which lessons can be exported?