Success factors in mobile money: lessons for operators
There are 138 live operator-led mobile money initiatives globally, and a further 94 in the planning stages, reflecting the enormous potential for operators to create an entirely new source of revenue. But fragmentation is the greatest peril for mobile money services, as too many competing options vie for user engagement amidst unclear value propositions for both consumers and operators. This report examines success factors, best practices, and areas of potential future disruption for mobile money services, and is of particular interest to mobile operators and other players in the value chain.
Mobile penetration in emerging economies has accelerated with the advent of increasingly affordable and capable handsets. IHS Screen Digest data reveal that the compound annual growth rate (CAGR) in mobile subscriptions for the period between 2001 and 2015 will reach 27 per cent in Africa and the Middle East, and 21 per cent in Asia Pacific. Contrast this with the more mature scenario in North America and Western Europe, with CAGRs of eight and five per cent respectively. This creates an extremely large potential audience for mobile money services, particularly in the developing world.
But to succeed, operators must explore innovative services unfulfilled by traditional banking institutions. In developing countries, such services include person-to-person (P2P) domestic and international remittances, government-to-person (G2P) disbursements (pensions or subsidies), and bulk payments (e.g. salaries). In developed countries, operators must focus their efforts in complementing rather than supplementing plastic cards, as reinventing these in the mobile handset form-factor is not enough.
Areas of competitive advantage in which mobile devices can easily outperform traditional plastic cards are card-not-present (CNP) transactions (e.g. online and mobile commerce), operator-billed mobile credit purchases coupled with loyalty incentives, international remittances, customer data analytics coupled with mobile advertising, and mobile money services which target the underbanked youth.
In this report:
Tables and charts included:
Tables & charts: 17
Countries: Argentina Brazil Canada Chile China Colombia France Germany India Italy Japan Kenya Mexico Philippines Russia South Africa Spain Thailand Turkey UK USA
Companies: Airtel Al Fardan Exchange Apple Ayala Corporation BDO Unibank BPI Bank Commercial Bank of Africa Equity Bank Faulu Kenya Globe Telecom Google Kenya Commerial Bank Mastercard MFS Africa MTN Nokia NTT DoCoMo Telefonica Paypal - Ebay Safaricom Skype - Microsoft Smart - PLDT Standard Chartered Bank Telkom - Orange TrueMove - True Group Turkcell Visa Vodafone WhatsApp Yu - Essar
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