ResearchICA announces 21 Megatrends of Modern Mobile Money.

2024-04-17 08:55:49 Technology

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In its latest research, Worldwide Mobile Money Modernisation and Monetisation in Payments, Retail, Commerce, & Banking 2017 to 2022 (a.k.a. Modern Mobile Money 2022), ResearchICA offers critical insights into the changing landscape of mobile money industry.

Presenting 21 industry stats and forecasts that explore the trends in payment, commerce, retail, and banking, taken from the latest edition of Modern Mobile Money 2022.

1. Modern Mobile Money Portfolio to MNOs for next 5 years will be more strategic. For next 5 years, the customer adoption and revenues will remain directly proportional to the level of modernity present or missing in offerings. "Ornamental Opportunity", in simpler terms, can be understood to have an enormous impact till 2022, afterwards, however, the impact will shift to solid tangible performance, mass feedback, & business support systems (security, speed, omni-accessibility, fx).

2. Problem with modernisation, however, is that you can't modernise overnight. Operators (? in fact any player) who?ll act consistent to this cause will have much stronger presence felt among masses than any other incumbents.

3. If played well, modernisation alone can contribute near 85% to the total share of mobile money revenues. In general, mobile money can contribute by upto 45% (to total telco revenues) during next 5-7 years.

4. Opportunities are huge and limitless, and operators can grab these opportunities easily till the time only banks, MNOs, and FinTechs are in the game. Techs giants are eying this opportunity at a mass level and the findings of survey in this regard are really alarming for MNOs.

5. According to survey of more than 42,000 people across 27 countries ? to check people?s expectations from Payment, Commerce, Banking and other Financial systems. Overwhelmingly, more than 43% respondents would think moving to tech giants such as Facebook, Google, Amazon, and Apple if they were to offer such services.

Distrust towards tech giants however is at par with telcos, relatively more so toward Banks, with strong 17% owning mobile connections preferring to see more from Telcos, as an alternative.

Same 17% also see social transparency - a vulnerability - as a threat. And would like to see something more "private" (less social than tech giants) - less "opaque" (more transparent than Banks), which interprets into indirect gains for Telcos, between 2017 & 2022.

6. Diamond Bank (Nigeria) was able to grow its customer base by 50 percent (6 million) in two years, not by opening additional branches but through its "modern" payment, commerce, retail, and banking solutions.

7. Customer?s willingness is the primary deterrent to modern payment adoption. Surveys suggest, ?the issue is less the mobile wallet itself and more that people remain loyal to traditional payments showing little enthusiasm for picking up new habits.?

8. The Global P2P Payments Market is projected to generate transaction value worth US$250 billion by 2022 increasing from US$60+ billion in 2016. The transaction value of P2P payments is projected to grow at a CAGR of 42% during 2017-2022.

9. Future Commerce ? The screen size & battery are two big deterrents in confidence building toward mass uptake of digital payments. One Touch payments have upped conversion ratio from 15% (in 2012) to 87% (in Q2 2017), according to data released by PayPal. Network Operators can however enhance rate of adoption to near 99% by adapting to device-less payments (using private hyperledger network over SIM cards; or enabling wifi functionality, per se) in less than 2 years.

10. In the coming 5 years, a mobile money service will be much more than transfer or airtime top-up. Payment at large scale, commerce, retail, investment along with banking and insurance will be taken into account, and ?payment-proximate? activities (such as investment decisions, trade financing, cross-border payment, salaries, pensions and a host of other core activities) all will become part of mobile money offerings. Also, neatly planned ?simpler financial product-portfolios' can help mobile operators in building greater value propositions vis-?-vis mobile money.

11. Business where mobile phones are most used for receiving orders is Accommodation Services [involving restaurants and catering], where 85% use them. Followed by Arts & Entertainment (84 percent), Manufacturing (82%), Wholesale & Retail Trade (80%), and Administration Services (77%). More than 3/4th of all such businesses had a mobile money account.

12. The Hotel & Catering businesses were the best represented, with 85% per cent having a mobile money account, followed by Health & Pro bono Work (82%), Finance/ Insurance companies (75%), & Wholesale & Retail (76%).

13. NFC Payment Technology will take at least another 3-5 years before becoming truly mainstream. By Q2, 2017 less than 30% payment terminals have enabled NFC POS in the US.

14. The US proximity mobile payment transactions are expected to show growth of more than 100% in 2017. It is expected that by 2017, 50 million people will be using a proximity mobile payments service.

15. Mobile Money Network -as- Commodity ? represents huge non-conventional opportunity which banks will utilise for instant account opening, featured introductions, and promotions. Politicians for vote bank & outreach. Institutes will utilise for spending patterns, prime analytics, evaluations, and project studies.

16. Sandbox Model Crackdown ? Banks have diluted the Sandbox model, Network Operators must find new potential ways to stay relevant & innovative for funnelling innovation, for future. According to a recent survey, '8 out of 10 startups will prefer to work with the Banks?.

17. With 99% consumers in Canadian market well aware of mobile wallets, only 57% are using a mobile wallet in their day-to-day lives. Strong GPS technologies, invisible/ touch-less payments, & omnichannel access could bring the desired growth in payments across Canada and major cities of the US.

18. As banks are becoming more digital; with companies willing to shut down expensive branches in favour of mobile platform, video services are being seen as an effective way of
maintaining the human touch.

19. Cryptocurrencies are going to become more common after the historic progress wherein Japan recognised bitcoin as a legal payment method on April 1, 2017.

20. Spider Web Model ? [Just how Spider comfortably sitting in the corner let things come to it.] A huge nationwide campaign asking, what do you want in us?. . . can yield and attract lots of innovation while providing excellent opportunity of promotion & branding. Similarly, specialised communities can be approached for identifying leakages, gaps, issues of compliance, etc. Offering reward in return ? can help immensely to adding security features, staying ahead in meeting compliance, saving huge on nasty costs or surprises.

21. Saving upto 30% in Negotiations ? Adapting to changing technological landscape and investing in future, selectively, knowledgeably; focussing specifically on results that matter, chaffing out bulky attributes that only add to costs . . . will be a mega trend common among late-movers, for saving huge on functional, developmental, & tech-enablement costs.

This "first-of-its-kind" research attempts to unlock sleuth of critical insights via pointing at transformative impacts of the existing "sub-traditional" systems in mobile money industry across both developed as well as emerging markets.