June 15, 2009 - 8:53am
U.S.-based microfinance policy and research center CGAP reported on Monday that mobile financial services to poor people in emerging economies will increase from nothing to $5 billion in 2012. By the moment the adoption of mobile payments was limited by a number of emerging markets with developed countries giving their preference to online banking. New estimates were made by GCAP in association with industry group GSMA.
Mark Pickens, microfinance analyst at CGAP notes that apart from $5 billion, telecoms operators could save up to $2 billion from lower customer turnover, and the takeup of financial services would lift by $1.10 their average monthly revenue per user (ARPU).
As the data show in Africa only 1 in 5 people have bank accounts which is explained by high costs for the banks to serve customers in far-flung parts of a continent where many of the population of one billion live on a few dollars a day or less. On the other hand, mobile phones are spreading at a very fast pace. According to GSMA the adoption increased from 50 million in 2003 to 270 million in 2007.
The data also show that the volume of mobile financial services in these markets jumped sharply from simple cash transfers by text message to payments for everything from a taxi ride to a utility bill. Most optimistic researchers expect more than a billion people in emerging markets to start using mobile money within a few years, while some are more cautious than CGAP.
Mark Pickens, microfinance analyst at CGAP notes that apart from $5 billion, telecoms operators could save up to $2 billion from lower customer turnover, and the takeup of financial services would lift by $1.10 their average monthly revenue per user (ARPU).
As the data show in Africa only 1 in 5 people have bank accounts which is explained by high costs for the banks to serve customers in far-flung parts of a continent where many of the population of one billion live on a few dollars a day or less. On the other hand, mobile phones are spreading at a very fast pace. According to GSMA the adoption increased from 50 million in 2003 to 270 million in 2007.
The data also show that the volume of mobile financial services in these markets jumped sharply from simple cash transfers by text message to payments for everything from a taxi ride to a utility bill. Most optimistic researchers expect more than a billion people in emerging markets to start using mobile money within a few years, while some are more cautious than CGAP.