Mobile finance to outdo 3G

3G services yet to make a 'significant market impact'

Financial applications on mobile phones will outstrip demand for third-generation (3G) services and could be lucrative for VARs.

That is according to Bob Sweetlove, business manager at distributor Hugh Symons, who has claimed 3G services have yet to make a "significant market impact". The past two years have seen sharp increases in mobile phone services, and many analysts believe 3G could be the next big boom in the mobile market.

"3G hasn't had a dramatic effect yet; consumers just get a lot of extra services through their mobiles. It will only drive the market slightly," Sweetlove said.

The next big thing in the mobile market will come from applications that allow users to carry out financial transactions through handsets, he added.

"But any such service needs to be very secure," Sweetlove said.

Global mobile phone shipments have remained strong in 2004, according to IDC, with the third quarter showing sequential growth of seven per cent.

"Key to this growth has been vendors' constant improvement, innovation and renewal throughout their product portfolios," said David Linsalata, analyst at IDC's mobile devices programme.

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