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Mobile Money in Emerging Markets Product Image

Mobile Money in Emerging Markets

  • ID: 1059313
  • June 2009
  • 48 pages
  • Ovum

Activity in mobile payment services (and more broadly mobile money services) is accelerating in many emerging markets. The market is still in its infancy, yet it has the potential to become a mass-market service.

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Executive summary
In a nutshell
Key messages
Mobile money market accelerating but still in a fragile state
Unbanked users driving demand
Operators leading a mix of mobile money players
Technology, ecosystem and regulation are key enablers
Mobile money will become a mass-market service by 2014…
….but a range of alternative scenarios remain possible
Recommendations for service providers
Three strategic reasons for mobile money services
Segment target market carefully
Start with a simple proposition
Price is key
Distribution channel is key to success with unbanked segment
Understand and manage your ecosystem
Get the basics right
Mobile money: market analysis
Definition and scope
The current landscape
Mobile money in a global context
M-Pesa boosting hopes in emerging markets
Baby steps and fragile gains
Key market drivers and barriers
User demand
Technological maturity
Regulatory issues
Summary market drivers and barriers
Market development scenarios
Introduction
Most likely scenario
Optimistic scenario
Pessimistic scenario
Service provider strategies for success
Why mobile money?
Direct service revenues
Indirect service revenues
Brand-enhancing benefits
User segmentation
Banked consumers
Unbanked consumers
B2B distribution networks
Micro-entrepreneurs
Developing a mobile money proposition
Simplicity is key
Mobile money features
Pricing strategy: balancing multiple aims
Agents are key to success with unbanked segment
Viral marketing is key to promotion
Managing the mobile money ecosystem
A powerful line-up of players and a complex value chain
A wide spectrum of business models
Pros and cons of each model
Partnerships are not easy to get right
Standalone models find more favour with banks
Get the basics right: networks and technology
Case studies
Vodafone and Safaricom: M-Pesa (Kenya)
MTN: MobileMoney (Uganda)
Zain: Zap (Kenya)
Orange Money (Ivory Coast)
Smart Money (Philippines)

List of Tables
Table 1: Banking and ATM penetration
Table 2: Substitutes to mobile money
Table 3: Mobile money drivers and barriers
Table 4: Most likely market development scenario
Table 5: Optimistic market development scenario
Table 6: Pessimistic market development scenario
Table 7: Summary of mobile money services
Table 8: Comparative pricing of selected mobile money services
Table 9: Telecoms versus banking systems
Table 10: M-Pesa service fees
Table 11: MTN MobileMoney (Uganda) service fees
Table 12: Zap service fees (Kenya)
Table 13: Orange Money (Ivory Coast) service fees
Table 14: Smart Money (Philippines) service fees

List of Figures
Figure 1: Mobile money in emerging markets
Figure 2: Banking versus mobile penetration
Figure 3: Mobile money service platform
Figure 4: Addressing different regulatory dispensations
Figure 5: Sample segmentation approach
Figure 6: Service development approach
Figure 7: Stakeholders in mobile payments ecosystem in emerging markets
Figure 8: Mobile money value chain
Figure 9: Models adopted by operators and banks for mobile money services
Figure 10: Collaborative business model
Figure 11: Bank-centric business model
Figure 12: Operator-centric business model

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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