The US mobile payments market will reach $90 billion by 2017, a 48 percent CAGR from the $12.8 billion spent last year, with in-store mobile payments growing faster than m-commerce, according to a report by Forrester.
The third category of mobile payments defined by the research firm is mobile peer-to-peer payments and remittances, although they represent a minority of the overall market.
In 2012, m-commerce represented 90 percent of the total mobile payments market but by the end of 2017 its share will have shrunk to 50 percent.
Meanwhile, in-store payments will grow dramatically from four percent to a market share of 45 percent.
The reason for the fast growth of such payments, which includes those enabled by NFC, is lower barriers to adoption, increased convenience and early entrants pushing for scale, says the report.
Mobile remittances fall into several segments including domestic P2P, cross-border P2P and bill payment. Although the category will generate $4 billion by 2017, it will fail to reach the scale of in-store or m-commerce payments.
Growth in P2P payments will come from cross-border remittances where individuals typically send cash home to family or friends in their home countries.