People paying for goods online on their mobiles is increasing at a pace which analysts and indeed PayPal hadn’t anticipated.
Hence PayPal has just raised its estimation for the amount of money splashed out using mobile payments via its own services to $3 billion this year.
In an piece on the PayPal blog, Laura Chambers, Senior Director of PayPal Mobile, notes that this is the second time that the payment processing firm has upped its forecast this year.
Whereas the initial prediction was for a spend of $1.5 billion in total, that was upped to $2 billion in February, and now a few months later it has been doubled up to $3 billion, with the pace of payments evidently accelerating.
That represents a daily TPV (Total Payments Volume) of around $10 million, up from $6 million in March. Eight million customers now regularly use their mobile phone to pay for purchases using PayPal (up from a figure of six million).
PayPal isn’t the only outfit expecting big things of mobile payments this year, as those without a vested interest are also estimating a good year for 2011, and large increases in the future.
Forrester Research reckons the total worth of mobile commerce this year will be $6 billion. Forrester further predicts that by 2016, mobile transactions will total around the $31 billion mark, a five-fold increase.
Of course with NFC set to explode, true mobile payments where the phone replaces a debit/credit card (as opposed to simply paying for online goods via PayPal) will be the arena where the company must make sure it has a footing.
And there’ll be plenty of competition there, from the likes of Google for starters, with its Wallet mobile payment scheme.