Page 65 - State-of-the-Industry-2013

COnCluSiOn

concLUsIon

this year, mobile money deployments show a much broader range of performance than we saw in the two-tier landscape that was iden-
tifed in 2012. then, the industry was clearly two-tiered with a small group of services growing really fast, following the path of m-PeSa
in Kenya while other services were struggling to gain traction. today, the growth rates of diferent mobile money services are much more
varied, and there is no longer a clear set of slow-growing mobile money services versus sprinters. this year’s data also shows that mobile
money can be successful even in markets where it struggled initially, and that it is possible to turnaround the performance of what were
previously slow growing services.

Going forward, mmu predicts the industry will continue to evolve in the following areas:

• More examples of account-to-account interoperability, among mobile wallets and also with banks: in 2013, indonesia was the
frst market where three operators – indosat, telkomsel and xl - enabled their mobile money schemes to directly transfer money in
real-time between each other. Given how there are already 52 markets which have 2 or more mobile money services, mmu expects
that more markets may also seek to interoperate their mobile money platforms, once they have identifed the right technical and
commercial models to do so successfully. there is also an opportunity for mobile money services to connect with more traditional
fnancial services, enabling transactions and new products between bank accounts and mobile wallets. many deployments have
already started to integrate their services in this way, and we anticipate that many more will follow.

• Ecosystem development: in 2013, transactions involving external companies have been driving the growth of mobile money global-
ly, representing 29% of the value transacted in june. this is especially true among more mature services, where external companies
and merchants contribute to an even larger share of the product mix. Going forward, we expect to see more mobile money services
capture the payments demand from companies and institutions to drive high volumes of transactions on their platforms.
• Other mobile fnancial services: a growing number of providers are interested in launching mobile insurance, credit and savings
services, and we expect to see many new launches over the next couple of years. mobile insurance, credit and savings are important
new oferings and could serve to deepen fnancial inclusion, not only in terms of expanding access of these services to low-income
customers, but helping to ensure fnancial stability and security as well. however, more proof points are needed for how these
services can be ofered sustainably, in order to ensure adequate levels of investments are made by the industry.

the mobile money industry continues to grow, however there are also barriers in many markets which need to be overcome if mobile money
is to achieve its full potential. the industry will need to continue its work to embed best practices in order to accelerate its growth, and con-
tinue to engage with regulators and standard setting bodies to create more enabling regulatory environments that will allow these services
to fourish. Further investment is also needed to build strong foundations for mobile money services to grow to the next level, together with
more identifying sustainable business models for new products and services that ultimately will create a digital fnancial ecosystem.

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