By 2015 the volume of mobile money transactions will reach $1 trillion. Global companies must tackle five key challenges to make the most of this opportunity or wonder who moved their money.
By Abhishek Srivastava, Hariprasad Pichai, Thomas Kuruvilla, Arthur D. Little
Mobile money – beyond the hype and now a lasting trend
The arrival and pervasive use of mobile money has been heralded many times over the last decade, yet there have been few successful implementations across markets. With widespread use of smartphones, increased data access and a favourable regulatory environment, we believe conditions are now ripe for disruption not only in transactions (i.e. who takes a cut while moving money) but also in where the value is stored (e.g. a “wallet with benefits”).
Financial intermediaries, banks, telecom operators, mobile platform owners, retailers, online giants and niche players are all trying to grab a piece of this mobile money pie. We believe that their current offerings are partial solutions and that they must tackle five key challenges for success.
Five challenges to tackle
The five key challenges to tackle are user experience, context awareness, universality, security and regulation. The mobile money solution that addresses these best within the time/cost/quality constraints will succeed.