Mobile payments to hit $25bn

NEWS Goods purchased over the internet via mobile phones will generate $25bn in revenue by 2006 according to the latest report from Frost and Sullivan. Consumers will soon be able to pay for shopping, tickets or bills while walking down the street or sitting on the bus, said Ben Donnelly, research analyst at Frost and Sullivan. He claimed it is a case of 'how' and 'when', rather than 'if', the general public will accept using mobile phones to pay for goods. The emergence of mobile commerce is pretty much at the same stage as credit cards 50 years ago, claimed Donnelly. They were regarded an unnecessary luxury for many years until global technology standards made them acceptable, he added. However, security remains one of the biggest consumer concerns. Relaying credit card details over the internet leaves many consumers open to fraud, claimed Donnelly. But mobile payments require only a user authentication number to authorise a payment. Mobile payments will also offer a financial boost to operators in the face of declining voice traffic revenues.