A new report from Ovum is said to reveal activity in mobile payment services--and more broadly mobile money services--is accelerating in many emerging markets. The report, 'Mobile money in emerging markets', says the market is still in its infancy, yet it has the potential to become a mass-market service, penetrating one-third of all mobile users in emerging markets in five years' time. However, much will hinge on how well the industry addresses various market barriers, and its ability to nurture user demand with clear, simple and attractive propositions, it claims.
The mobile money market has accelerated in the last two years in emerging markets, mostly in more mature markets. "The success of Vodafone's Kenya subsidiary Safaricom with its mobile money service M-Pesa has underlined the potential for mobile money services," said Angel Dobardziev, co-author of the report. Yet, despite more than 100 launches of mobile money services by both service providers and banks globally the market remains in a fragile state with few well-established services. Article