Mobile transactions set to skyrocket

Mobile financial services have strong growth prospects

Advances in technology will drive a 12-fold increase in mobile transaction values to more than £600bn by 2013, according to research.

According to a study by Informa Telecoms & Media, almost 300 billion transactions will have been conducted by 2013, driven mainly by demand in the financial services sector.

"The prospects for growth and the emergence of new opportunities in mobile financial services are encouraging more players to enter the market," said John Darnbrough, associate at Informa and author of the Mobile Payments and Banking report.

"The mobile payments and banking market has evolved considerably over the last two years. Major industry initiatives led by the GSMA and significant commitments to the market from major financial services and telecoms leaders have changed the dynamics of this market," he said.

Mobile initiatives within the financial services sector include the ticketing trial carried out by Barclaycard in partnership with Transport for London (TfL) last year. In October, TfL told the London Assembly that it intended to replace the Oyster travelcard with new mobile phone or bankcard-based ticketing systems.

Lloyds TSB has also added extra mobile functionality to its internet banking service with a new mobile banking pack that offers high and low account balance text alerts, overdraft warnings, mini statements and a top-up facility for pre-paid mobile phones.

And Natwest announced a partnership with Polish bank PKO BP for a commission-free mobile money transfer service for UK account holders. Customers can use the service via mobile or phone banking after signing up via a web site which automatically enables international money transfers once the verification process is complete.