The mobile financial services industry is enormous and rapidly growing. Mobile money’s accessibility and digital convenience are helping to expand access to financial services, making it the de facto standard in many countries. This is especially true in regions with less developed banking infrastructure.
According to GSMA, the trade group for the mobile industry, more than 1.35 billion mobile money accounts process over USD2 million in transactions per minute. That’s a 31% increase in transaction value and an 18% increase in user accounts year over year.
Here are some emerging trends and technologies impacting the widespread acceptance of mobile money transfer in this rapidly expanding sector.
The rise of super applications
These days, the “super apps” are all the rage for mobile digital payment systems. A “super-app” is a mobile application that offers several services, such as payment and financial transaction processing, thereby turning it into a standalone commerce and communication web platform that covers many facets of personal and business life. These power applications may provide consumers with bundles of useful digital services. Additionally, these applications increasingly rely on financial services as a backbone for their ecosystems.
With an estimated user base of over a billion users apiece, the Chinese applications Alipay and WeChat are far and away the market leaders. Although limited to a particular location, Super applications provide comprehensive solutions for their consumers. With the largest user base, these mega applications provide a great platform for any small company to establish a digital presence.
The Internet of Things will make life easier
The Internet of Things will improve service interoperability, facilitating faster and easier mobile money transactions. Adapt IT | Telecoms has made life easier for its customers with all the supplementary features in their mobile money solutions. For instance, users may purchase power and replenish data using the technology, and financial transactions are simple and safe for everyone, including the unbanked.
Use of a cryptocurrency as payment
Cryptocurrency currencies have skyrocketed in popularity over the last few years, and their bright future promises to please their legions of devoted followers. Accepting Bitcoin or other digital currencies as payment might be a game-changer for anyone looking to launch a payment drive. These cryptocurrencies will continue to affect mobile payments over the next several years. They have already revolutionized mobile payments, opening up the global network to everyone with a smartphone and an internet connection. This is particularly true in developing nations.
The growing adoption of digital wallets
Digital wallets are mobile applications facilitating financial transactions by interacting with POS terminals. These programs may be kept on a user’s mobile device with the user’s credit card details. The most popular mobile payment systems are Apple Pay, Android Pay, and Apple Pay.
Fortunately, tokenization and other security features make digital wallet applications difficult to hack. A company that accepts digital wallets as payment increases user happiness and makes the most of an already-established channel to attract new ones.
The use of apps for personal payments
Personal payment applications (P2P/Peer-to-peer) are growing in popularity as an alternative to digital wallets. Services like this let users transfer money to others by simply looking up contact information such as a phone number, email address, or username inside the program. These deals are rapid and often cost nothing.
Zelle, Venmo, and PayPal are the most well-known P2P payment systems. As these services become more integrated with individuals’ bank accounts, certain retailers, such as Amazon, are beginning to accept payments through these individual payment applications.
The trajectory of mobile money transfer is fascinating. Mobile payment solutions are expected to take their place in these technologies since futurist forecasts are largely talking about super applications, blockchain, and artificial intelligence. Likewise, there is no doubt that mobile payments are headed in a mobile-only direction, and this development is nothing but exciting. The market for mobile payment services is ripe with potential.
