One in five handsets will offer mobile wallet functionality by 2018, up from less than one in ten at the end of 2013, according to Juniper Research. But the study says two different models for how wallets work will emerge.
In emerging markets, so-called stored value accounts will attract the unbanked and the report anticipates a run of deployments across sub-Saharan Africa as well as developing markets in Asia and Latin America.
The second wallet model will launch across North America and Western Europe and will feature contactless payment functionality. Juniper bravely forecasts this type of wallet will receive a boost from the launch of an Apple iWallet later this year, as well as through Host Card Emulation (HCE) lifting NFC services.
More than one in three mobile wallets – and over 50 per cent of wallets in developed markets – will offer contactless payment by 2018.
Mobile wallets in developed markets will also attract users because of high-profile P2P money transfer services such as Paym and Pingit, which will increasingly be integrated into existing mobile banking or payment apps.
A number of start-ups, such as Venmo and Dwolla, will drive popularity in the US among younger users.