Albany, NY -- (SBWIRE) -- 04/20/2017 -- Multiple Conducive Factors Create Opportunity-laden Environment for Mobile Money Market
The global mobile money market is on the cusp of a transformative change with growth increasingly swinging toward emerging economies, says TMR in a new report. The global mobile money market will derive growth from factors such as companies investing in context-based marketing and real-time marketing to leverage mobile money. With smartphone and personal device sales spiraling in emerging countries with an increasingly affluent consumer base, the need for more inclusive banking is also simultaneously being felt. This presents a multi-billion dollar opportunity for companies such as Bango.net Limited, Fortumo OÜ, Paypal, Inc. (PayPal Holdings, Inc.), Judo Payments, and others. Mobile commerce, mobile banking, mobile wallets, and mobile payments all come under the purview of the mobile money market.
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The coming together of various conducive factors will create an opportunity-laden environment for providers of mobile money services. Currently, service providers are focusing on cost effective alternatives to reach out to a larger consumer base. However, consumers continue to remain wary about security and privacy; the situation is compounded by regulatory complexity hampering the long-term growth of the mobile money market.
The current generation of disparate platforms is also hindering the adoption of the mobile money solution amongst consumers as they are required to manage multiple wallets for different transactions/services. However, there is little doubt that with the unprecedented penetration of mobile devices, these will increasingly serve as vehicles for financial transactions.
Emerging Economies to Provide Fertile Ground for Growth of Mobile Money Transactions
With the explosive growth in emerging economies such as China and India as well as in other countries in Latin America and the Middle East, mobile phone penetration has risen dramatically in recent years. Various reports suggest that in emerging markets, mobile phone penetration hovers around 50%, creating a bevy of opportunities for telecom operators, connected device manufacturers, and service providers to cash in on. Moreover, the report notes that although well over 1.5 billion people in emerging markets today enjoy mobile phone access, the same cannot be said about banking services. Thus, the unmet needs will create a massive opportunity for companies in the mobile money market, opines TMR.
The report also expects that with companies investing in more context-based and real-time marketing techniques, mobile money transactions will receive a boost.
Consumers' Apprehensions About Security of Data Need to be Allayed by Mobile Money Services Providers
Consumers today are wary of risks such as phishing, data breach, and data manipulation of data. Because mobile money essentially involves the collection of user data from internet touch points, the general concerns associated with online financial transactions are expected to seep into the mobile money environment as well.
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Moreover, it is clear that mobile money could mitigate the issue of banking exclusion in emerging markets in the long run. However, in countries where financial inclusion policies are not well-defined and duly implemented could pose numerous challenges for companies in the mobile money market. The situation is further complicated by the fact that governments are currently focused on improving competition in the financial sector to make services more customer-friendly. This approach doesn't necessarily increase financial inclusion, which can be achieved by prioritizing mobile payments. Factors such as these will create impediments for the growth of the global mobile money market, says TMR.
SMS Payments Hold High Economic Potential
Based on the mode of payment, the global mobile money market can be segmented into NFC, SMS, mobile billing, USSD/STK, and others. Of these, the SMS payment segment emerged in the leading position in 2015 and will continue to retain its standing through 2024 by rising at the fastest compounded annual growth rate (CAGR), TMR forecasts. The convenience and ease of SMS payments remain unrivalled, making this segment one with a myriad of opportunities.
Based on the type of purchase, money transfers and payments will not budge from its position as the leading segment in the mobile money market. However, the fastest growth will be observed in the airtime transfers and top-up segment between 2016 and 2024. Likewise, the healthcare industry will emerge as the fastest growing segment in the global mobile money market by industry vertical. However, it is the BFSI sector that will lead maintain a lead in terms of revenue.
In 2015, Europe stood as the largest market for mobile money worldwide – a scenario that will remain unchanged until 2024. The fastest growing segment, by geography, will be the Middle East and Africa with a 23.2% CAGR, says TMR.