Mobile payments driving global m-commerce adoption

Mobile_money_PAGE-BANNER-575x132_13

MEF this week released the first report in its Global Consumer Insights Series on Mobile Money, authored by editor in chief of Mobile Money Revolution, Tim Green and with Analytics partner, On Device Research.

The report analyses data from 10,000 respondents in 13 countries, highlighting regional & global trends in mobile money uptake and how it is stimulating growth across the mobile value chain.

In 2013, 15 per cent of mobile media users used some form of mobile money scheme to buy things at retail. They did so via a mobile wallet (NFC or otherwise), a mobile loyalty scheme or a transaction based on a plug-and-play card reader.

It’s a relatively modest number, although the amount of investment and innovation into the space suggests this will change.

Key Findings

  • 15 per cent of mobile media users used mobile payments to pay for goods in 2013.
  • Mobile money users are 26 per cent more likely to buy via mobile than average.
  • Africa continues to dominate mobile banking uptake with an average of 82 per cent of consumers engaged in this activity (globally it’s 66 per cent).
  • Network speed is important: two thirds of 4G customers have made an m-payment.

And, even more encouraging, MEF’s Mobile Money Insight Report shows a huge difference in overall commerce and content activity between those converted to m-money and those not. Indeed, in some areas, mobile money users do twice as much – in the purchase of perishable goods and virtual items, for example. And this applies across all 13 countries in the study.

At present the most high profile ‘proximity’ payment system is undoubtedly based on contactless NFC tech. However, for all the many pilots in operation, the study suggests take-up is very modest – at four per cent, it’s a similar number to those using loyalty apps or those who have paid with a card-reading mPOS dongle.

There are reasons to be optimistic about the area as a whole. The study reveals a quarter of users don’t pursue mobile payments because ‘the network is too slow’. But those with 4G are highly engaged. While fewer than one in seven mobile media users have made some form of mobile payment, the rate shoots to two thirds among 4G users.

Mobile money users

Mobile money users are significantly more likely to purchase via mobile

By contrast, mobile banking is already mainstream in some regions. The use of mobile apps for checking balances and paying bills is commonplace: two thirds of mobile media users do it.

Obviously, there are significant regional variations at play. In the African cluster of countries, the mobile money account is the bank account, and it’s used for transferring funds between users. The data re-emphasises the status of Kenya as the flag bearer for such activities. Globally, 66 per cent of mobile media users use some form of mobile banking. In Kenya, it’s 92 per cent.

Whereas, in developed markets, users are more likely to check balances and set up alerts for pre-existing bank accounts. For example, just over 50 per cent of American mobile media users check balances on their phones while only 16 per cent transfer funds to another account.

However, in other regions, mobile banking is proving harder to scale. Indeed, activity in in India, Mexico and Brazil actually fell between 2012 and 2013. These results reflect the legislative and regulatory challenges around launching mobile banking products to a significant proportion of the population – especially in countries with a large number of competing MNOs.

What is clear is that early adopters of mobile money are key to accelerating the growth of mobile commerce. This is true both in terms of their propensity to spend more on individual purchases and their likelihood to engage with a wider array of mobile services. In many markets, mobile money has already hit the mainstream, with Africa leading the way. Faster mobile networks will only advance its adoption further worldwide and opportunities for the mobile content and commerce industries as a whole are wide open.

Mobile Banking Globally

Mobile Banking Globally

For the full press release, and to download the Member-only report, visit the MEF website.

Trackbacks

  1. […] mobile banking is a “must-have”. In parts of the developing world, mobile banking is even the dominant form of banking. There is no doubt anymore that mobile banking is a big part of the banking landscape […]

  2. […] banking is a “must-have”. In parts of the developing world, mobile banking is even the dominant form of banking. There is no doubt anymore that mobile banking is a big part of the banking landscape […]

  3. […] banking is a “must-have”. In parts of the developing world, mobile banking is even the dominant form of banking. There is no doubt anymore that mobile banking is a big part of the banking landscape […]

  4. […] this year MEF released its Mobile Money Insight Report which indexed the motivations of consumers in adopting mobile payments in all its forms.  The […]

  5. /0/22143785 says:

    /0/22143785

    Mobile payments driving global m-commerce adoption – mefminute

  6. […] Mobile money users are 26%  more likely to purchase via mobile.  Globally 91% of people who actively bank or make payment via mobile made some form of mobile purchase as opposed to 65% of […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 2,385 other followers

%d bloggers like this: