HOME › Research Insight › No. Of Mobile Money Users to Cross 2.5 Billion By 2018
No. Of Mobile Money Users to Cross 2.5 Billion By 2018
Mobile Money Market report provides a split among different business verticals such as Banking and Financial services, Telecommunications, Media & Entertainment, Hospitality, Consumer goods and Retail and other allied segments across geographies.
As banking organizations are rapidly investing in mobile technologies to harvest untapped potential at both the ends of the population, the mobile money market is set to grow at an unprecedented rate. In one of our recent reports “Mobile Money Market: (Mobile Payments, Mobile Remittance, Mobile Banking & Mobile Commerce) - Advanced Technologies, Value Chain, Adoption Trends & Worldwide Market Forecasts (2013–2018)” experts expect the total number of mobile money service users to cross 2.5 billion. Currently, less than 300 million users worldwide avail mobile money services.
Not just the size, but the segments of the pie as well are expected to change dramatically. Currently, about a fourth of the total customers can be classified as active. This share is set to grow rapidly, as more than half of the total users would be using the services actively.
The major forces driving this market are the need of banking in a huge unbanked population across the world, need of more sophisticated banking services at the higher end and the need of telecom service providers to leverage existing infrastructure to generate newer revenue channels.
MarketsandMarkets segments the market based on six key characteristics: Business verticals, Transaction modes, Nature of payments, Type of purchase and geographically. The report identifies NFC/Smart Cards, Direct Mobile billing, SMS, WAP and USSD as the major transaction modes existing in the mobile money domain.
Mobile money has been around for a while now, but the growth phase is yet to take off. The success of M-PESA in Kenya has set an example that many others are looking forward to follow. Indian telecom major Airtel has been focusing a lot on the huge untapped market. Airtel Money, the mobile wallet offered by Airtel has been around for over an year now. This May, to confront the competition that is sure to come up, Airtel and the Uganda based telecom operator Warid merged their money transfer services to serve more than seven million subscribers. Through this merger, Airtel takes a head on with MTN Uganda on the mobile money leadership.
In the times to come, players will focus on one of the two key areas: providing convenience at the upper end of the user base, or in gaining market penetration at the huge, untapped population at the lower end. Network operators shall continue to enjoy advantage due to their pre-established network distribution. Newer commerce providers shall seek to collaborate with large network providers to bring down costs and increase distribution.
North - Dominion Plaza,
17304 Preston Road,
Suite 800, Dallas, TX 75252