Disclaimer: The statements and opinions expressed in this article are those of the author(s) and do not necessarily reflect the positions of Thoughtworks.
Mobile money is on an exponential growth curve in Africa, due to the growth in mobile phone penetration of GSM SIM based phone networks, and is considered the next frontier in financial inclusion for the unbanked, and easing the costs of transactions on the continent.
The primary success of M-Pesa by Safaricom in Kenya is driving adoption, but now that the teething challenges are being understood and models for dealing with them are becoming more prevelant, maturity challenges are now becoming more prominent and are causing many to wonder whether the promise is being achieved.
Starting primarily as a money transfer solution by telecoms it has proven to be a lucrative alternate revenue stream for the telcos who are being pressed due to increased competition in voice (now a commodity), lower charges in international calls from Voice over IP (VOIP) alternatives, higher capital costs for infrastructure to support a burst in mobile data growth, and lower phone usage due to social networks like Facebook/Twitter/Google+.
The next step is to grow into a mobile commerce payment solution, for merchants, organizations and businesses in order to compete against established players like banks and other financial institutions, debit and credit cards, online payment systems like Paypal/CheckOut/Google Wallet, NFC based mobile payments. Overcoming this frontier means delivering a more streamlined user experience to the consumer which is key to adoption.
Below are 10 features and approaches that I think mobile payment solution providers need to do in order to become relevant in the mobile payment space:
What are your thoughts?
This post was originally published on Stephen's personal blog. Read Stephen’s recent interview on UGO News to learn more about mobile money usage in Uganda.
Disclaimer: The statements and opinions expressed in this article are those of the author(s) and do not necessarily reflect the positions of Thoughtworks.
Thoughtworks acknowledges the Traditional Owners of the land where we work and live, and their continued connection to Country. We pay our respects to Elders past and present. Aboriginal and Torres Strait Islander peoples were the world's first scientists, technologists, engineers and mathematicians. We celebrate the stories, culture and traditions of Aboriginal and Torres Strait Islander Elders of all communities who also work and live on this land.
As a company, we invite Thoughtworkers to be actively engaged in advancing reconciliation and strengthen their solidarity with the First Peoples of Australia. Since 2019, we have been working with Reconciliation Australia to formalize our commitment and take meaningful action to advance reconciliation. We invite you to review our Reconciliation Action Plan.