Where the mobile money
market has hitherto been dominated by companies such as
Fortumo OÜ, Boku, Inc., WePay, Inc., Square, Inc., and Paypal, the competition
is building up dramatically with the advent of new players such as Dwolla,
Inc., Bango.net, and Judo payments. According to Transparency Market Research
(TMR), the market leaders controlled by about 40% of the global mobile money
market in 2015.
The way ahead for companies wanting to fortify their presence in
the market, evidently, is via acquisitions and by developing feature-rich
products and services. With more small- and medium-sized enterprises seeking
convenient and secure mobile payment options, companies such as Fortumo OÜ are
expected to strengthen their foothold in the market. “Companies’ future
strategy, in the short term, will largely be centered on acquiring new customer
in Middle East and Europe,” observes a TMR analyst.
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.
Get More Information: http://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=1505
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.
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.
The global mobile money market will exhibit a 22.0% CAGR from
2016 through 2024. By revenue, the market accounted for US$17.25 bn in 2014.
This assessment is based on a Transparency Market Research report, titled
“Mobile Money Market – Global Industry Analysis, Size, Share, Growth, Trends
and Forecast, 2016 – 2024.”
No comments:
Post a Comment