P2P mobile payments in Europe expected to be one of the key growth drivers in 2017

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European Central Bank (ECB) has recently announced plans to launch P2P mobile payment system using payee’s mobile phone. The phone number will act as proxy for the International Bank Account Number (IBAN). This proposed payment structure has been named as Eurosystem which includes ECB and the national banks of other states with Euro as currency. This standardized look up system is expected to be launched by end of 2017 and will not be restricted to national IBANs. Also, under the same initiative payment service providers are being encouraged to develop and implement instant payment solutions for end users in Euro currency at pan-European level. A public consultation service has been created for the proposals which need to be submitted by November 2017. Thirdly, Automated Clearing Houses (ACHs) are expected to launch instant payment clearing systems under this scheme.

According to PayNXT360, European consumers are increasingly using mobile phones to make payments. The adoption rate for mobile payments have also increased across the continent. However, in terms of maturity, rate of innovation, and penetration the UK is the market leader with a significant percentage of high value item purchases. ECB plans to push Europe to the level of United Kingdom and US in terms of integrated payments segment. This initiative is expected to open up new prospects for payment service providers in the continent.

The UK mobile payment market is expected to record a CAGR of 28.5% from 2017-2021 to reach US$ 8,14,698 million in transaction value terms by 2021, increasing from US$ 2,98,637 million in 2017. While, P2P transfer market transaction value was US$ 61,560 million in 2016 and expected to reach US$ 2,56,931 million in 2021.

To know more and gain deeper understanding of mobile payment industry in the UK, click here.