Mobile Financial Services in Africa
The Business Case for Operators and Banks

Report Details
Pages 48 |  Exhibits: 25 |  Report Excerpt

Description Activity in the mobile financial services space around the world has ramped up a notch as more companies seek to bring to reality the vision of widespread usage of mobile devices to pay for goods and services. For various reasons, however, implementing this vision has been held back in practice: consumers are comfortable with existing payment options; the technology is not yet optimal; the end-user experience is cumbersome; and business models are still largely in flux. Mobile payments are having a more penetrating impact in poorer economies than in mature ones, with market dynamics that are starkly different, especially in Africa. This is understandably due to a more constraining supply environment — one that is primarily cash-based, rife with antiquated regulations and burdened with a banking system that is geared to focus on the high end of the consumer market. The greater impact of mobile payments in emerging markets is also due to the more challenging demand picture of markets where most consumers have much lower incomes and lack bank accounts.

It is in this context that new business models have emerged over the past few years that are transforming the financial landscape in developing countries. A new report by Pyramid Research, Mobile Financial Services in Africa: The Business Case for Operators and Banks, reviews and analyzes mobile financial services offerings in African markets, looks at drivers and obstacles to mobile financial services, breaks down business models to assess their true bottom-line impact, and provides market projections based on intrinsic market dynamics.

Key questions answered

• What combination of necessity on the demand side and opportunities on the supply side have created the unique success of mobile-based financial services in Africa?
• What are the practical challenges — from regulation and compliance to fulfillment, security and distribution — that complicate mobile payment implementation in Africa?
• What role does technology play in the success of various mobile payment approaches in Africa?
• What business model will drive mobile financial services growth in Africa over the next five years? Will it be driven by mobile operators, banks or third parties?
• Why do operators play such a central role in the more successful services, such as M-PESA? What are the strengths they bring to the table?
• What benefits do mobile financial services bring operators? Is there revenue to be made? How?
• How fast will mobile money transfer services expand? How many users will they have by 2013?
• Are the prospects for mobile-based international remittance services different, and if so, why?
• What business models will dominate mobile finance in the various markets of Africa? Will M-PESA clones lead the way?

Target audience

Operators
Learn how different business models can be used to provide mobile financial services, in particular what the role is of the main players and the supporting ecosystem. Find out which factors — regulations, technology — make a service successful. Draw on conclusions based on the experience of successful African operators that have wide application in markets at various stages of development.

Banks
Determine how different markets require different approaches to mobile finance. See how your role varies between business models and how you can build on your strengths in each situation. This report offers the analysis you need in order to take advantage of the mobile opportunity, especially among previously unreachable income segments.

Investors
Identify the opportunities in mobile finance by examining case studies of successes in some of the most difficult markets in the world. This report provides a thorough grounding in the important issues facing one of the most exciting segments of the telecommunications industry, giving you the fundamental tools to develop long-range plans and winning strategies.

Mobile financial platform vendors and integrators
Discover where your greatest opportunities lie and how deep you involvement in the business of providing mobile financial services should be. Understand the challenges facing your customers and what role you can play in meeting those challenges. This report promises the analysis you need to take a larger share of operator spending with informed go-to-market strategies and creative solutions, particularly in a time of economic downturn worldwide.

Companies mentioned in this report:

Mobile Financial Services in Africa is part of Pyramid’s research report series. A blend of primary research and qualitative analysis, Pyramid’s research reports offer comprehensive coverage of the fixed and mobile communications space and enable those in the communications industry to stay ahead of changing market dynamics. For more information about this report, please contact us via email at info@pyr.com or telephone at (617) 871-1900.

Author: Guy Zibi, Jan ten Sythoff

Publication Date: January 2009