- Mobile Money market in 2016
- Outlook 2016
- Opportunities in countries with the highest potential
- Current competition landscape
- Main types of products/ offer that could be launched
- Key success factors of an entry strategy
3. ● Mobile Money market (selected Asian countries)
● Outlook 2016
● Opportunities in countries with the highest potential
● Current competition landscape
● Main types of products/ offer that could be launched
● Key success factors of an entry strategy
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Agenda
4. What is Mobile Money?
1. Mobile Banking — use of a mobile phone to remotely access a bank account, primarily
for account balance checkup and bill payment services
2. Mobile Money transfer (remittance) — a peer-to-peer application making use of a mobile
phone to send money to family or friends, primarily across international borders
3. Mobile Commerce (payment)— use of a mobile phone to perform financial transactions
for purchases or sales, either remotely or on-site, retrieve promotion information or coupons,
and deliver gift items
Source: Ernst & Young, Mobile Money - An overview for global telecommunications operators, report 2015
http://www.ey.com/Publication/vwLUAssets/Mobile_Money./$FILE/Ernst%20&%20Young%20-%20Mobile%20Money%20-%2015.10.09%20(single%20view).pdf
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5. Mobile Money Objective
Universal access to safe and convenient financial services.
Easy, Fast and Safe
Mobile Money helps to:
- reduce the vulnerability of the financial system and
- mitigate risks due to the widespread use of cash and informal financial services.
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6. Mobile Money market in 2014-15
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Source: The Singapore FinTech Consortium, As of Q4, 2014
7. Outlook 2016
The global Mobile Money market is expected to grow from $12.34 Billion in 2014 to $78.02
Billion by 2019, at a Compound Annual Growth Rate (CAGR) of 44.6% during the forecast
period from 2014 to 2019.
Source: Expert Interviews, Secondary Literature, and MarketsandMarkets Analysis
According to research firm Gartner, the value of mobile payment transactions in Asia-Pacific
is expected to reach $165 billion in 2016, overtaking Africa as the largest region for mobile
payments.
Source: Capacity Magazine June-July 2015 Asia Pacific
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9. Why?
● High penetration of mobile
○ Population is comfortable with mobile technology
○ Limited fixed line infrastructure
○ Mobile operator is trusted brand
● Limited access to financial services
○ Low banking penetration
○ Financial services mainly available in urban areas
○ Limited credit and debit facilities available to mass
● Migrant population
○ High need to transfer money from urban to rural areas
● Poor infrastructure/ security
○ Limited public transport
○ Traditional money transfer services are costly
○ Security concerns associated with carrying cash
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10. Mobile Money - Current competition landscape
Players
● Mobile Network Operators: Vodafone Group PLC, Bharti Airtel Limited, Orange S.A.
● Device Manufacturers and Mobile Operating System Providers
● Financial Institutions
● Payment Networks: Paypal, Alibaba, Globe, Alipay, UnionPay, YeePay, Taobao
New entrants
● Online messaging service providers: KaoKao Talk (South Korea), Line (Japan),
WeChat (China)
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13. Mobile Money - Launch new products and services
Products/ Services Indonesia Philippines Vietnam
Banking services ✓ ✓ ✓
P2P transfers ✓ ✓
P2B payments ✓ ✓ ✓
Bill payments ✓ ✓ ✓
Public Service Access
Airtime purchase ✓ ✓ ✓
G2P transfers ✓ ✓
Savings accounts ✓ ✓ ✓
Micro-Credit ✓ ✓ ✓
Micro-Insurance ✓ ✓ ✓
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14. The future of Mobile Money products
Mobile Money in particular has become the foundation for a range of other innovative
financial products:
● Life and health insurance coverage paid for by topping up prepaid airtime
● Interest-bearing savings accounts for non-banked customers
● Instant personal and small-business micro-loans, and even investment bonds bought
through a mobile phone.
Mobile value-added services: promotions (advertising, loyalty, couponing, promotions/
offers, shopping assistant)
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15. Key success factors of an entry strategy
Market
Competitive (low) prices
Innovative offering
Breakthrough innovation
Differentiation
Early starter
Marketing (branding and communication)
Customer centric experience
Customer segmentation
Technology
Interoperability: NFC technology could be a way to address interoperability between all parties offering services and technology standards
Enhanced security
Business model
Partnership: establish strong partnerships with other financial institutions
Joint venture
Infrastructure
Payment network
Point of sale
Adoption of the system by agents and susbcribers
Regulation
Financial regulations and legislation
Regulatory compliance
Licences under domestic legislation and regulations
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16. Thank you
Check out my LinkedIn profile
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Nathamaly Sinbandhit
Digital Banking Specialist
https://sg.linkedin.com/in/nathamaly/en
