Mobile Payment

I would summarize the mobile payments trends in 2 categories:

1-Developped vs under developped countries

2-Merchants vs users

1-Developped vs under developped countries

In developped countries, mobile payment is growing but startups are having difficulties in defining an adequate business model. For example in Europe, banking rates are very high and everybody uses credit cards. Companies are having difficulties to explain why paying by mobile is more efficient than paying by credit card. Whereas in under developped countries (Kenya, Philippines,…), banking rates are very low and mobile payment accounts, such as ewallets, are having a very high success because it allows to make the same operations as a banking account with lower management fees and maybe less regular constraint.

Furthermore, it favors receiving international transfers, at a more advantageous fee, from immigrants working in other more developped countries.

2-Merchants vs Users

Merchants are currently open to the idea of allowing users to pay through mobile and see this method as an additional way for payment complementary to cash, check and credit card payments. They see also in it an opportunity for a more focused data analytics that could help them better understand their customers.

On the other hand, users’ behaviour varies between countries and between early adopters and skepticals.


Categorised in: Internet, Marketing