Mi-Pay remains positive about the mobile money market and predicts that the next five years will bring new services, players and greater financial freedom to the world’s poorest populations.
While global recession has left its mark on many industries, Mi-Pay believes it has also acted as a catalyst for mobile-based financial service adoption; allowing the company, now ranked in the world’s top ten mobile money providers, and top five in terms of service based offering, to continue expansion of its services in Africa, India, Eastern Europe and Latin America during 2009 and 2010.
Norman Frankel, CEO of Mi-Pay explains, ‘As banks, service providers and mobile operators seek to overcome economic challenges, drive more efficient infrastructure and create stickier services for larger groups of customers, many are now turning to mobile payments, remittances and top-up to boost reach, fuel demand and renew customer loyalty. As a result, we predict that the next five years will see mobile money shift from being a niche service to a viable mass market proposition with widespread global adoption.’
Many leading industry analysts confirm Mi-Pay’s outlook. For example, Informa predicts that in 2013 there will be 300 billion mobile payment transactions, totalling $800 billion. It also suggests that revenue from mobile payments in 2013 will be as high as $10 billion, a twelve-fold increase on what we see today. Similarly, Berg Insight believes mobile banking will grow at 89% a year; peaking in 2014 with 913 million global users. Berg also forecasts up to 20% of international money transfers will be carried out via the mobile generating a further $170-680 million in service revenues.
But it is not all plain sailing, according to Frankel, ‘This is a complex, technically challenging and heavily regulated environment; fraught with difficulties for uninitiated players seeking fast rewards. Our five years of expertise makes us one of the most experienced mobile money service providers in the world. The lessons we have learnt from live implementations and service roll-outs, in some of the world’s most demanding regions, will allow us to continue to navigate these challenges; delivering the most flexible money services to our customers irrespective of location or market.’
Frankel adds, ‘We feel strongly that mobile based financial services can greatly help those people disenfranchised due to social, political, economic or geographical constraints. It allows access to convenient payments mechanisms; generating new opportunities for trade and socio-economic growth. The roll-out of our agent-based, person-to-person money transfer platform in Africa is testament to this; we look forward to witnessing the benefits that it delivers over the years to come.’