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ADVANCED PAYMENTS REPORT 2014 – SPONSORED BY

How the mobile market is divided among existing MNOs is also with the expansion of mobile payments and the technologies that
important. Markets with fewer operators will generally fair better. support them.
Safaricom had about 80% of the mobile market in Kenya, allowing it In Mexico and Brazil, advances are being made in transferring
to create a closed-loop system that did not need to be interoperable. Government-to-Person (G2P) disbursements away from cash.
In contrast, Russia and Brazil both have mobile penetration rates Both countries have comprehensive social/welfare cash transfer
above 100%, booming smart phone markets and rapidly expanding programmes that reach millions of unbanked and under-banked
internet sales. These markets also have a mobile landscape that is households. The two governments are leveraging branchless
more evenly split among a wider base of competitors, yet neither banking through networks of nonbank agents and aggressive
market has achieved the growth seen in Kenya. More players may expansion of POS networks.
make development and launching of mobile payment solutions
In many smaller developing markets, particularly in rural areas,
more complex.
where internet and mobile penetration is below 30%, government
The more market share an MNO has, the easier it is to leverage its programmes can be key for laying the technical infrastructure that
network of retail agents as educators and customer service points. will allow fnancial institutions and MNOs to collectively develop
Indeed, 74% of respondents consider the size of an agent network mobile payment solutions.
critical to success.
For example, Kigali, the capital of Rwanda, became the frst city
Agents are the frst source of information, and their input is regarded in East Africa to launch free wireless internet in specifc areas of
as the most important in eliminating customer’s fears regarding the capital last year. Rwanda has 1 million internet users and is
fraud and faulty technology that could compromise funds. Just targeting 5 million by 2016. The government strongly believes
as importantly, agents can accept money for storage on mobile that information and communications technology will enable the
payment products and explain the variety of options available to country to transition into comprehensive fnancial inclusion.
mobile wallet users.
Recognizing the high cost of smart phones, the government
Governments can also accelerate deployment of advanced also launched a programme called Vizio, which will collectively
payment solutions through fnancial inclusion policies and negotiate with cellular phone manufacturers on behalf of banks and
development of electronic government payment programmes. MNOs in order to pass on cost savings to low income consumers.
85%
These are complementary agendas that have begun to converge

85% of survey respondents agree or strongly agree that
m-payments will grow faster in developing markets.

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