The banking and finance industries will drive the adoption of TSM (trusted service management) platforms as the two sectors ramp up deployment of m-payment solutions, according to new analysis from Frost & Sullivan.

The consultancy firm calculates that banking and finance will account for around 80 per cent of the total number of TSM projects by 2015.

TSM market revenues are expected to increase from €166.2 million in 2014 to €326.5 million in 2015.

The study covers TSM for secure elements (TSM SE), which provides the trust infrastructure required to manage the credentials in SE, and TSM for service providers (TSM SP) that enables banks, merchants and other service providers to instantly allow customers to use their credit, debit, prepaid, loyalty, reward, access, transit and other cards on mobile devices.

TSM SP, says Frost & Sullivan, will account for nearly 82 per cent of total global TSM solutions in 2014.

“TSM is crucial for certain NFC-using businesses, which require a high level of security due to the type of information transferred during the execution of applications,” said Jean-Noel Georges, the firm’s global programme director. “Although applications related to music or games do not require TSM for technical security, players in the entertainment industry adopt these solutions to act as business enablers and handle digital rights management for related applications.”

Frost & Sullivan warns, however, that doubts surrounding the actual profitability of TSM platforms with existing pricing models are hampering market development. Market participants, it says, should educate end users on the extensive benefits of TSM to overcome this challenge.

“Service providers that control the TSM platform will have a strong strategic position with regard to their relationship with customers,” added Georges. “Moreover, participants that can directly interact with alliances, associations, and certification governance in order to influence or follow the selected security technology will drive a strong market interest globally.”