Operators looking to increase ARPU and reduce churn would be well advised to launch mobile money services, according to the findings of a recent report from CGAP and the GSMA.
The Mobile Money Market Sizing Study claims that mobile money user ARPU is 74% higher than non-user ARPU, with unbanked users on average spending US$9.4 per month and non-users spending US$5.4 per month in the Philippines.
In addition, it is forecast that mobile money has the potential to deliver up to US$5 billion in direct revenues for mobile operators by 2012, on the basis that up to 364 million unbanked customers will have adopted mobile money services during that time.
Security concerns appear to be less of an obstacle to success than perhaps previously thought, with 90% of the users surveyed saying they feel their money is safe when handled via mobile.