UK top in Europe in mobile payments global survey

Other publications from Fieldfisher on mobile payments include:

• EC takes action to bring e-money laws into line
• The Brave New Mobile Ecosystem – Reflections from Mobey Day 2012
• Creating an integrated card, e-payments and mobile payments market for Europe Tech Bytes 7 February 2012
• Mobile money: seizing the opportunities  Tech Bytes 7 February2012
• Mobile operators build momentum behind SIM-based one-tap services: Tech Bytes 14 December 2011
• Mobile contactless payments:  European Payment Council looks beyond the SIM model   Tech Bytes 13 July 2011

A recent global survey of mobile payments markets indicates that amongst EU Member States, the UK market is likely to lead the way as the testing ground for mobile payments and in the development of advanced mobile payment solutions.

MasterCard's Mobile Payments Readiness Index (MPRI) is based on a survey of mobile payments markets across 34 countries.  The survey measures how prepared and receptive those countries are for person to person mobile payments, m-commerce and point-of-sale mobile payments.  Each country is scored according to:

• Consumers' familiarity with, willingness to use and actual use of mobile payments
• Household consumption expenditure, as well as technological factors such as internet reach and business use of technology
• The level of development of consumer financial services 
• Infrastructure readiness, taking into account mobile phone penetration, network coverage and NFC take-up
• Partnerships between telcos and banks to promote mobile commerce and
• Whether legal frameworks to foster m-commerce are in place. 

The UK is ranked eighth out of the 34 nations surveyed worldwide.  Among the factors that contribute to the UK's high score are its strong legal frameworks and the high level of joint venture activity and partnerships in the market.  The survey also points out clear patterns in consumer acceptance and willingness to engage in mobile payments "laying out an easy-to-follow road map for marketing".  

The UK's prospects also benefit from relatively high card penetration and strong user adoption of mobile and smartphones. Based on this analysis, the survey concludes that in the UK "it only remains for issuers, telcos and other players to connect the dots".

At the top of the index is Singapore, scoring highly due to its strong regulatory and financial systems, although in common with other countries it scores less highly in consumer readiness.  The survey points out that in order for mobile payments to become widespread, markets need to demonstrate strength across all of the category scores.

John Worthy, Partner in the Technology & Outsourcing Group at Field Fisher Waterhouse LLP