Global mobile payment transaction values are expected to reach $721 billion by 2017 from $163.1 billion in 2012, research firm Gartner said on Tuesday.
Global mobile payment transaction values are expected to grow by 44 per cent from $163.1 billion in 2012 to $235.4 billion in 2013 and further to $721 billion by 2017, Gartner said in a statement.
This corresponds with the surge in number of mobile payment users worldwide, which is expected to touch 245.2 million in 2013, up from 200.8 million in 2012, it added.
"We expect global mobile transaction volume and value to average 35 per cent annual growth between 2012 and 2017, and we are forecasting a market worth $721 billion with more than 450 million users by 2017," Gartner Research Director Sandy Shen said.
Money transfers and merchandise purchases are expected to account for about 71 per cent and 21 per cent respectively, of total transaction value in 2013.
However, worldwide, people are not purchasing through the medium as much because the buying experience on mobile devices has yet to be optimised.
People are spending less via mobile devices than via online e-commerce services and at retail outlets.
Merchandise purchases account for about 23 per cent of the total value forecast for 2017.
Bill payment value is also expected to grow 44 per cent in 2013 and have consistent growth till 2017, accounting for about five per cent of the total value forecast, Gartner said.
Asia Pacific's transaction value is expected to grow 38 per cent in 2013 to reach $74 billion.
Deployments in developed markets like South Korea and Singapore and in developing markets such as India are expected drive healthy growth in this region.
As a result, in 2016, Asia/Pacific is expected to overtake Africa to become the largest region by transaction value, reaching $165 billion.
Africa's transaction value is forecast to reach $160 billion in 2016.
While Africa will experience strong growth through the forecast period, companies are still searching for the most suitable business model for mobile money in their local markets.
North America's transaction value is forecast to grow 53 per cent in 2013, reaching $37 billion (from $24 billion in 2012).
Western Europe's transaction value is expected to reach $29 billion in 2013, up from $19 billion in 2012.