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Mobile Money Market Insights

Inside Telecom Staff

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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

Operator network sharing in emerging markets

Karim Hussami

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network sharing

The telecom industry is always looking for ways to improve the quality of services offered to customers and support present and future connectivity needs by expanding network broadband, adopting new technologies and exploring new telco partnerships.

As such, network sharing is also gaining popularity in emerging markets as part of a sustainable strategy to boost overall connectivity services.

Latest trial with MTN Nigeria and 9Mobile

More specifically, this concept has been implemented in Nigeria where local operators have been encouraged, by the Nigerian Communications Commission (NCC), to conduct network sharing. The NCC granted MTN Nigeria and 9Mobile the approval for the trial of a national roaming service.

What are the benefits?

Services such as calls, text and data or access of other services will be made possible when traveling outside a particular coverage area by making use of the network of another operator.

“The successful implementation of the trial will enable EMTS subscribers to access MTN network service within the National Roaming trial geographical area without the need for an MTN Subscriber Identification Module (SIM) card,” said NCC Executive Vice Chairman and CEO, Umar Garba Danbatta.

Moreover, the benefits of increased operator network sharing in Nigeria, will lead to operational expenditure optimization and capital expenditure efficiencies. It will also aim at freeing up resources to expand mobile network coverage to unserved and underserved communities and improved quality of service delivery to subscribers, as well as connecting remote parts of Nigeria.

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Feature Articles

SK Telecom to rollout blockchain-powered wallet with ministry approval

Yehia El Amine

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Blockchain

South Korean telecom giant, SK Telecom, has announced the rollout of its first e-wallet aimed at digitally storing and managing government-issued documents, gaining approval from the country’s Ministry of Public Administration.

According to SKT, the wallet will be powered by blockchain technology, and will be compatible with Government24’s digital initiative program, which promotes and encourages certificate issuance and distributions electronically as the second wave of the Covid-19 pandemic hits worldwide.

“Blockchain is a vital technology in today’s rapidly changing environment. There is a dire need for virtual interactions and innovative processes for streamlining certificates and other government-issued documents,” SK Telecom’s head of Blockchain & Certification Division, Oh Se-Hyun, was quoted as saying.

Citizens will be able to receive and send documents such as immigration certificates, resident registration card copies, health insurance qualifications, among others through a blockchain-powered mobile app.

The SK e-wallet will work cohesively with Government24 app seamlessly sharing documents from one to another, while also allowing documents to be shared with financial institutions, public entities, and private organizations in electronic form.

According to SKT, the wallet will support 13 different types of documents and certifications but will later increase to 100 types as the year ends.

According to numbers from Statista, almost one million South Koreans have discarded of their physical drivers’ licenses in favor of blockchain-powered digital alternatives used in conjunction with the PASS smartphone app.

“One million represents more than 3 percent of the entire driving population in South Korea, which sat at 32.6 million licensed drivers in 2019 alone,” the report from Statista highlighted.

In the past few years, South Korea has been spearheading countrywide digitization efforts especially with blockchain technology. Seongnam, the country’s second largest city, has already rolled out several digital payment programs, with plans to adopt more.

In parallel, beachgoers in Busan will be able to pay for services with Bitcoin (BTC) and Ethereum (ETH); while one of South Korea’s biggest banks KEB Hana Bank has partnered with the Korea Expressway Corporation to implement a blockchain-based toll system for the country’s highways.

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5G

Can 5G improve remote learning for all?

Karim Hussami

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remote learning

The Covid-19 pandemic has changed many aspects of life including education; from the subsequent closure of educational institutions around the world to the rapid adoption of online learning.

However, the concept of students studying and learning online started before the spread of the virus with an annual study from the Learning House, a U.S.-based Edtech company, noting that, “the proportion of students studying and learning fully online has risen from under half to fully two-thirds.”

A fast internet connection is one of the main criteria for a successful remote learning experience, therefore, 5G will likely facilitate a more seamless learning experience for students across the world.

Benefits of 5G

Remote learning based on new technologies has convinced 80 percent of teachers that this new way empowers their teaching process, according to Houghton Mifflin Harcourt’s fourth annual Educator Confidence Report.

So how can 5G rollout help Edtech?

Facilitating learning through new techniques

Allowing students to tap into their imaginative and explorative qualities is an essential step for better learning experiences.

Thus, 5G will broaden the scope of technologies used while teaching students new curricula and learning material; for example, it will allow institutions to open availability for virtual and augmented reality with its low latency and peak download speeds, estimated to be as high as 20 gigabits-per-second.

“Virtual and augmented reality headsets will allow students to place themselves anywhere in the world and even within a story. These digital experiences will enliven current curricula and allow students to energize their imaginative and explorative qualities, which should be central to educational experiences,” Nicol Turner-Lee, Ph.D. and a fellow at the Brookings Institution’s Center for Technology Innovation said.

Closing distances with easy accessibility

While 5G offers faster data speeds and enhanced connectivity for many, it may not be accessible to students living in remote or secluded areas. Such a limitation may deepen the digital divide.

However, wireless devices are easier to put in place than traditional wired or fiber-based internet, making it a more practical solution.

Remote learning with 5G is an opportunity to help schools close the homework gap by boosting mobile learning.

“The advent of 5G on mobile devices can help close that gap as students can begin to use faster, more reliable mobile-based connections to complete an assignment, rather than a terrestrial connection,” says Erin Mote, Co-Founder of the Brooklyn Laboratory Charter Schools and Education Technology expert.

Tech will help special needs students:

Our new educational normal will help students and children with special needs. 5G can help by enabling robots to be responsive with students, offering them good learning experiences, as well as being full-time assistants and supporting teachers by responding instantly to the needs of the student with learning exercises.

However, a big dilemma is presented here: children from high-income families are spending 30 percent more time on distance learning platforms than those from low-income families.

In parallel, 64 percent of secondary pupils in state schools from the wealthiest households are being offered online teaching from schools, compared with 47 percent from poorer families, according to a report from the Institute for Fiscal Studies.

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