Frost & Sullivan: Mobile Payment Solutions to Heat Up Trusted Service Management Market Revenues - WOWK 13 Charleston, Huntington WV News, Weather, Sports

Frost & Sullivan: Mobile Payment Solutions to Heat Up Trusted Service Management Market Revenues

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Frost & Sullivan

Hub TSM solutions are the need of the hour

LONDON, May 6, 2014 /PRNewswire/ -- The global market for trusted service management (TSM) has not quite lived up to expectations with the low level of near field communication (NFC) commercial deployments in the transportation sector. However, the banking and finance sectors are making up for this with the launch of mobile payment solutions that require the support of TSM platforms. These verticals are expected to implement pilot and even concrete TSM projects in 2014 and account for 80.1 percent of the total number of TSM projects by 2015.

New analysis from Frost & Sullivan, Trusted Service Management, expects market revenues to increase from €166.2 million in 2014 to €326.5 million in 2015. The study covers TSM for secure elements (TSM SE), which provides the trust infrastructure required to manage the credentials in SE, and TSM for service providers (TSM SP) that enables banks, merchants and other service providers to instantly allow customers to use their credit, debit, prepaid, loyalty, reward, access, transit and other cards on mobile devices. TSM SP will account for 81.8 percent of the total global TSM solutions in 2014.

"TSM is crucial for certain NFC-using businesses, which require a high level of security due to the type of information transferred during the execution of applications," said Frost & Sullivan Information & Communication Technologies Global Programme Director Jean-Noel Georges. "Although applications related to music or games do not require TSM for technical security, players in the entertainment industry adopt these solutions to act as business enablers and handle digital rights management for related applications."

However, doubts surrounding the actual profitability of TSM platforms with existing pricing models are hampering market development. Market participants should educate end users on the extensive benefits of TSM to overcome this challenge. Solutions such as hub TSM appear as a promising option.

Further, the averse of some banks to adopt TSM solution due to the lack of transparency regarding the independence of the third party is lowering market potential. Banks are not reluctant to discuss with software companies that were able to offer pure cloud-based solution to handle tokens. Service providers would do well to focus on hybrid solutions, which combine tokens based on SE storage and a cloud-based platform, rather than pure cloud-based solutions as the former is more likely to gain traction globally. This will be particularly important with the recent introduction of host card emulation.

"Service providers that control the TSM platform will have a strong strategic position with regard to their relationship with customers," stated Georges. "Moreover, participants that can directly interact with alliances, associations, and certification governance in order to influence or follow the selected security technology will drive a strong market interest globally."

For more information on this study, please email Edyta Grabowska, Corporate Communications, at edyta.grabowska@frost.com.

Trusted Service Management is part of the Smart Cards (http://www.smartcards.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Payment Privacy Protection - Global Security Implications, The Future of Mobile Payments in Europe, Analysis of the Global One-time Password Market, and Can Biometrics Revolutionize Mobile Payment Security? All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

Join Us:           Join our community

Subscribe:       Newsletter on "the next big thing"

Register:         Gain access to visionary innovation

Trusted Service Management
MA23-33

Contact:
Edyta Grabowska
Corporate Communications – Europe
P: +48 22 481 62 03
E: edyta.grabowska@frost.com 

http://www.frost.com

©2012 PR Newswire. All Rights Reserved.