Mobile money is an emerging concept in the global market which represents a profitable opportunity with a massive social impact by allowing customers to access services which can help them to effectively manage their day to day routines. It also presents crucial commercial prospects for the companies to pursue this strategy as the prospective channel for establishing direct connection with the customers and achieve future growth.
The prime benefits of usage of mobile money include lower costs, faster speeds and ease of accessibility. This is of crucial importance in the third world countries, where technology sublimation has fostered a rather well-built mobile infrastructure and services have witnessed immense traction in the number of users. The development of various mobile financial services including mobile insurance, mobile credit and savings has enabled service providers to extend their reach of the product offerings through alternate channels. The mobile insurance industry has been gaining foothold in the recent years, supported by the involvement of specialist intermediaries, which have created commercial and partnership models which have been accelerating product launches.
In 2009, Asia Pacific accounted for the highest number of mobile payment users worldwide, followed by Europe and North America. Consequently, the region also noted the highest share in the transactions being operated through mobile devices, which was registered at 71.2% in 2009.
The value of the mobile money transactions in North America has expanded at a CAGR of 35.8%. North America mobile payment market is extremely fragmented and cumbersome, featured with technological splits and battling business models.
Europe registered a share of 6.7% in global mobile money transitions, as observed in 2009, which has fell down to only 1.1%. The estimated value of transactions processed via mobiles in Europe was registered at USD 51.2 billion.
The Latin American mobile payments industry has increased at a decent pace over the period of 2009-2013, however it is expected to witness brisk growth in the coming years, with increasing efforts of operators and banks to extend their offerings, banking upon the technology of mobile payments. The mobile payment market has gained the support of the government in various economies, with the region witnessing increasing number of collaboration of MNOs and financial institutions to roll out services across different countries.
Middle East has witnessed a steady growth in the adoption of mobile payment services over the course of 2009-2014. However, the user base is still very low as compared to other regions with only 2,140.0 thousand people using mobile payment services in 2013. However, factors such as large number of migrants, transient workers and swiftly growing mobile user base have been paving the way for growth of mobile payments market in the Middle East region. The total value of transactions processed in this region in 2014 has grown at cumulative annual growth rate of 57.9% over the period of 2009-2014.
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