Connect with us

Feature Articles

Mobile Money Market Insights

Inside Telecom Staff

Published

on

Mobile Money Market Report

The global mobile money market is expected to witness a CAGR of 21.4% during the forecast period of 2020 to 2030, according to a new research report released by FMI. Quick turn made by some of high potential economies with limited digital financial inclusion among masses to digitize payments has been a key enabler for mobile money. The indispensable usage of smartphone and affordable cost of internet has played the epicentre role in the adoption of mobile money among retail consumers.

Simplification of money transfers by digital wallets has lured in growing number of users. These wallets use biometric technology for payments and money transfers. This verification method that fingerprint scanners, facial recognition, and iris recognition. Biometric single sign-on is an advanced password management technology that protects data from unauthorized users, reducing the chances of fraud.

Organizations have started using multi-factor authentication by combining fingerprint technology with password or PINs. Multi-factor authentication is highly secure as it makes difficult for hackers to compromise the customer account. This security method combines something what users know and what user is.

“Key players in the market can gain significant profits by providing mobile money solution with machine learning algorithm that prevents money laundering, identity theft, mobile fraud, and credit card fraud. Machine learning algorithms are applied to automate the analysis of customers’ behavioral patterns for any sign of abnormality giving the ability to identify and flag fraudulent activity in real-time,says the Analyst

Key Takeaways:

  • Mobile money to win growing number of users as payments for multiple services such as ticketing, loans, bills, and utilities gets easier
  • Digital wallets to be the most popular form of platform for use of mobile money as they referral and reward systems attract consumers
  • Millennials and Generation Z to be remain predominant users of mobile money
  • South Asia & Pacific to remain ahead of others as e-commerce gains unprecedented momentum

COVID-19 Impact Analysis on Mobile Money Market

The COVID-19 pandemic has significantly impacted the businesses globally. Consumers and businesses are expected to adopt mobile wallets or apps to make cashless payments in order to avoid multiple touchpoints and chances of cross-contamination to stop the spread of COVID-19. To maintain social distancing consumers and businesses are expected to encourage the usage of digital wallets, which will bode well for the mobile money market.

Increasing adoption of mobile wallets, the mobile money market is estimated to grow by 1.2X from 2019-2020 and would see a surge in demand in Q2-Q4 2020. The market for mobile money grew around 18% Y-o-Y in the past two years. However, as the ongoing COVID-19 crisis continues to stay it will lead consumers to be habituated to digital payments so there would be surge in demand for mobile money.

Adoption of Contactless Payments Spurring Growth of Mobile Money Market

Contactless payments method is easy and convenient than making a card payment. It is faster and more secure than the PIN technology as it transfers the encrypted data to the point-of-sale device instantly. Contactless payments are done through NFC technology that powers the payment through a type of radio frequency, enabling the smartphone to communicate with the payment reader when they are close together. QR codes have also gained immense popularity in recent years as quick ways of making payments with an easy scan.

Contactless payments are highly secure as they are embedded with multiple layer of security to protect user against fraud. Companies such as Apple, Samsung, Google are providing contactless payment system such as Samsung pay, Apple Pay, and Google Pay.

These insights are based on a report on Mobile Money Market by Future Market Insights

 

We’re a diverse group of industry professionals from all corners of the world. Our desire is to provide a high-quality telecoms publication that caters to an international market, offering the latest and most relevant telecoms information to businesses, entrepreneurs and enthusiasts.

Feature Articles

Telecom operators play a big role in digital advertising

Ranine Awwad

Published

on

Telecom operators play a big role in digital advertising

During the Covid-19 pandemic, buying clothes, running your business and even buying food have been done through digital platforms.  Telecom operators have played a big role in digital marketing especially when it comes to health. Telecommunications services have been collaborating with doctors and charity foundations to facilitate people’s life during the lockdown.

Digital marketing can be done through SMS, MMS, or P2P messaging. With the pandemic, everything went digital. Experts have reported that in 2020, half of global marketing was done through digital platforms. According to Deloitte, digital sales grew by 18% in Q1 2020 compared to Q1 2019.

EMarketer estimates the global ad spending on digital advertising to be $427 billion. Singtel, the largest telecoms group in South East Asia is the leader in the advertising sector.

Sany Kabbani, Telecom Industry Analyst at Google said, “Users in MENA are making decisions online and buying online. Faced with this new consumer reality, telecom operators in MENA are embarking on digital transformation programs.” In Saudi Arabia, STC has done good work in promoting digital marketing as part of the vision 2030. STC already encouraged its customers to digital self-service channels including MySTC app, MySTC Shop, and MySTC 900.

According to ‘Data insights in digital advertising and the role of operators’, 67 percent of brands consider telecom operators as a better original source of data insights than Google, Apple, and Samsung.

The global SMS firewall market size is projected to grow from USD 2.2 billion in 2020 to USD 3.0 billion by 2025, according to the Global SMS Firewall Market (2020 to 2025) report.

The fifth-generation network would be a game-changer for digital marketing. With fast internet connectivity and the closure of the digital divide, the marketing sector is expected to register a significant growth within the next few years.

Continue Reading

Feature Articles

Italy decides to exclude Huawei from 5G-core network deployment

Ranine Awwad

Published

on

Italy decides to exclude Huawei from 5G-core network deployment

It seems that the 2020 nightmare continues for the Chinese telecom giant Huawei. As an inexpensive equipment provider, the company has been accused by the US for cybersecurity issues. The US has been calling its allies to ban Huawei’s involvement in the deployment of 5G networks. On July 9, 2020, Telecom Italia (TIM) has excluded Huawei from a tender for 5G equipment for the core network it is preparing to build in Italy and Brazil, according to The New York Times. The Italian telecom operator has invited suppliers such as Cisco, Ericsson, Nokia, Mavenir, and Affirmed Networks. However, ZTE and Korea’s Samsung were excluded from the list. “The security and development of digital Italy should be based on an approach grounded in facts and not baseless allegations,” commented Huawei on the decision.

For the time being, Huawei will not participate in the existing core network in Italy. However, it has supplied Brazil with 4G equipment, used for the core network – where sensitive data exists – for the Italian group’s local unit. Huawei executive has warned that Brazil could suffer years of delay in 5G deployment if they consider banning the company.

Italy’s decision regarding Huawei came after foreign pressures. On October 2, 2019, US Secretary of State Michael Pompeo warned Italy of China’s “predatory approach” to trade and investment, according to AFP. However, on January 30, 2020 an Italian minister told Reuters that Italy has no plans to ban Chinese companies including Huawei from participation in the deployment of 5G networks. Industry Undersecretary Mirella Liuzzi said that the government should tackle the issue of national safety without being naïve. “They should take the necessary precautions but without keeping anyone out of the doorstep,” she said, according to Reuters.

In 2017, Italy launched a 5G trial to implement infrastructures and services in five cities. Back in September 2017, authorizations were granted for the use of 100 MHz in the 3.6-3.8 GHz band for the rollout. At the end of 2018, the country launched auctions for fifth-generation networks and raised about $7.3 billion.

Oxford Economics published a report entitled “The economic impact of restricting competition in 5G network equipment” in November 2019. The report states that restrictions on Huawei will increase investment costs, slow down rollout, and delay productivity improvements. A lower competition may lead to higher contract prices set by telecom operators for 5G equipment. Italy should take into consideration these impacts while preparing a strategic plan for the post-Huawei phase.

Continue Reading

Feature Articles

Batelco and Ooredoo partnership for Global Zone expansion

Inside Telecom Staff

Published

on

Batelco and Ooredoo partnership for Global Zone expansion

Batelco, the Bahrain telecommunications company, has partnered with Ooredoo to implement plans to expand Global Zone platform, which was launched in Bahrain in 2019. The platform was chosen to support telecommunications, information and communications technology and to meet the growing requirements of regional data.

The carrier-neutral data center has a rich digital business solutions portfolio including Manama-IX, a carrier-neutral internet exchange, Cloud Connect solutions, and IPT solutions.

“Our partnership with (Batelco) contributes to enriching our product portfolio, being the leading provider of Internet services and FASTtelco as well as providing services for Amazon Web Services (AWS DX) and Global Zone.” Said Abdulaziz Al-Babtain, Head of the Companies and Governmental Bodies Sector at Ooredoo. “The launch of the platform in Kuwait provides our customers with access to additional global paths through the fiber network with little response time and better performance.”

The companies say that the expanded partnership with Batelco will give FASTtelco access to a new set of products to further develop its portfolio by offering AWS DX, Global Zone, MPLS and MN-IX. It will also provide Ooredoo Kuwait clients with access to additional global fiber routes.

The initiative to develop and integrate Global Zone into new markets will create a whole data center interconnection. This data center is powered by FASTtelco, the leading internet service provider (ISP) in Kuwait; acquired by Ooredoo.

Ooredoo Kuwait/FASTtelco and Batelco’s partnership can utilize these solutions for their business needs and, it is hoped, reach new markets, while eliminating the complexity of being connected to other players.

Adel Al-Daylami, Chief Global Business officer at Batelco said, “The company has always sought to broaden its reach, with the aim of meeting the needs of customers and partners across the region. We are very pleased to have Ooredoo Kuwait as a strategic partner to support our regional rollout plans for Global Zone to deliver enhanced services to our customers.”

Moreover, the Bahraini company’s digital ecosystem and strong global network will aid expansion plans for Global Zone in the market. The alliance marks the beginning of a progressive regional partnership effort.

Continue Reading

Trending

Copyright © 2020 Inside Telecom