Mobile Financial Services in Latin America: Telco Service Portfolios and Positioning Strategies

Mobile Financial Services in Latin America: Telco Service Portfolios and Positioning Strategies

Summary

First Mobile Financial Services (MFS) launched by a telco in Latin America took place in 2008 with Tigo Cash in Paraguay, which was geared towards the unbanked population. Since then, the number of Mobile Financial Services (MFS) offers in Latin America increased significantly, with most of them falling into the category of mobile wallets such as Transfer by Telcel, Zuum by Vivo Brazil, and Tigo Money by Tigo.

Nevertheless, most of the MFS offers available have not yet reached the desired scale, thus not allowing telcos to properly monetize from these Mobile Financial Services (MFS) solutions. The increased competition in the Mobile Financial Services (MFS) market with tech companies (such as Google Pay and Paypal), financial institutions (such as Banamex Wallet in Mexico and Ourocard-e in Brazil) and mobile device manufacturers (such as Samsung Pay and Apple Pay) launching their own MFS solutions have challenged telcos.

In order to leverage usage and adoption of their Mobile Financial Services (MFS) solutions, telcos are adding more features into their mobile financial portfolio and also developing value-added services through partnerships. In 2006, Tigo added remittance service into its Tigo Money portfolio through a partnership with World Remit, Money Gram, and Western Union. Telcos are also implementing rewards and loyalty programs attached to their Mobile Financial Services (MFS) portfolios, where users can get benefits such as minutes of use in their traditional mobile voice plans, or even discounts at select retailers.

"Mobile Financial Services in Latin America: Telco Service Portfolios and Positioning Strategies", is a new Telecom Insider Report provides an executive-level overview of mobile financial services (MFS) in Latin America. It delivers deep qualitative insight into the telco service portfolios and positioning strategies in the region, analyzing key trends on telcos' mobile financial offers, business models to foster their position in the mobile financial space, and case studies.

It provides in-depth analysis of the following:

• Mobile Financial Services Market Context: taxonomy and categories within the mobile financial services space.


• Mobile Financial Services in Latin America: overview of the core portfolio of mobile network operators' mobile financial services.Looks at the recent development and the current state of MFS in Latin America, while also providing a closer look at the differences and similarities of mobile person-to-person payments.


• Case studies: three different case studies from Latin America giving insight into mobile network operators' portfolios, strategies, and positioning in mobile financial services.


• Key Findings and Recommendations: summary of key findings and growth opportunities for telcos in the Latin America mobile financial services market.

Companies Mentioned: Telefonica, America Móvil, Telcel, Citibank, Tigo, Millicom, Transfer, Vivo Brazil, World Remit, Money Gram, Western Union, Paypal, Banamex, Mastercard, Visa.

Scope

• MNOs are partnering with financial institutions in order to enhance their m-P2P/B solutions, streamlining the process of transferring and receiving money.


• In Latin America, mobile digital wallets is the most popular type of MFS solution, enabling transactions from connected devices and a variety of providers to offer branded m-wallet services.


• Smartphone penetration of population reached nearly 70% in Latin America at year-end 2017, proving that more people have access to a mobile device than to banking services in the region.

Reasons to buy

• Offers a comprehensive and detailed understanding of mobile financial services (MFS) portfolios and positioning in the Latin America markets.


• The report investigates MFS trends, milestones, and competitive attributes, looking in particular at the various drivers and inhibitors in the Latin America region.


• To study Latin America’s most competitive MNO MFS provisions, in order to inform strategic decision-making.


• The report discusses commercial and technical developments in the wider mobile money market and what these developments might mean for the future.