Richard Johnson, Monitise’s Senior Vice President Strategy, contributed the following post to the Finextra blog earlier this week:
The halls of Fira Gran Via, which plays host to Mobile World Congress (MWC), were as always a showcase for all sorts of digital technology. I was particularly interested to explore the halls asking myself, what’s the Mobile Money angle? Here are four of the things that caught my attention.
1. The Internet of Things
Whilst connected devices, connected cities and the Internet of Things have been the talk of the technology world for a few years now, the devices on show at MWC were on a whole new level. Connected cars, connected homes and even a connected toothbrush!
The Mobile Money angle
You wouldn’t build a shopping center without an ATM; the connections in this future world will need to be financial as well a technical. A connected fridge for example, needs to find some way of automatically paying for the things it orders. A connected car needs to be able to seamlessly pay for parking or an upgraded SatNav package. Some of these may be subscription-based with open-ended pre-registered payment credentials, but most consumers want a degree of control. So there’s going to need to be a way to manage payment preferences, and to authorize payments. And it won’t be any good if the consumer has to have separate apps for every connected device. It’s of course about secure, trusted, interoperable networks and many different businesses will want to battle for a role in this new ecosystem. Read More »
News and insights from the Mobile Money industry, by Monitise Senior Vice President, Industry & Investor Relations, Andrew Griffin.
Nielsen on Media Consumption: Nielsen recently published some consolidated media consumption figures for the US, UK and Italy. Nielsen found that Americans spend 34 hours a month on smartphone apps and mobile web, while Britons spend nearly 42 hours a month on the same. UK smartphone users pick up their handsets on average 9 times in a day; traditional voice calling/SMS communications make up 9% of time spent on smartphones, while social makes up 29%.
Monetate on Q4 eCommerce: Monetate’s eCommerce Quarterly report examined how mobile drove US online shopping during the 2013 holiday season. Monetate’s mobile conversion figures show a 27% increase, with an 18% increase for tablets. A 15% overall decline in social conversion rates, meanwhile, is attributed entirely to Facebook, whose conversion rate has fallen 26% over the last 12 months. Approximately 75% of “social traffic” comes from Facebook, though Pinterest is moving into the breach (with conversion rates up 30% in a year). Additional data in the report includes website visits by device, traffic source, conversion rates, add-to-card rates, average order value, browser market share and conversion rates by state.
IDC Sees Smartphone Growth Slowing: While smartphone sales grew 39% in 2013 to 1 billion units, IDC predicts this will slow to 19% in 2014 and 6% by 2018 (when IDC expects 1.7 billion smartphones to ship). Revenue growth will be much lower as well, with IDC expecting average smartphone prices to fall from $335 in 2013 to $260 by 2018. While the growth slowdown is a result of the law of large numbers, the flip side is that cheaper smartphones is one of the main drivers of mobile banking adoption.
Bankinter HCE Demo: While Google and more recently Visa and MasterCard have garnered headlines pushing HCE, mid-sized Bankinter from Spain showcased its demo at last week’s Mobile World Congress. Read More »
American Savings Bank executives discuss the reasons they chose Monitise to power their mobile banking solution.
PYMNTS.com provides an overview of the biggest payments news from last week’s Mobile World Congress 2014 in the following Slideshare presentation:
Novarica found that in Q4 of 2013, over 25% of bank shoppers said that mobile banking is a “must have” feature when selecting a new checking account.
Interestingly, of these shoppers who said that they must have mobile banking, 92% also indicated that they wanted additional mobile features, including 29% who wanted 5 or more.
Some of the most frequently selected additional features included:
- Mobile check deposit
- Online/Mobile Billpay
These findings are consistent with findings in a new white paper from AlixPartners, which found that constantly providing innovative new mobile services is vital for financial institutions to stay competitive.
Click here to download the white paper.
Mobile Money services are spreading at an increasing pace worldwide, according to the new GSMA “State of the Industry” report released this week at the Mobile World Congress 2014 in Barcelona, Spain.
The report contains data from the Mobile Money for the Unbanked (MMU) Deployment Tracker, which monitors the number of live and planned mobile money services for the unbanked across the globe. It also includes data from the MMU 2013 Global Adoption Survey of Mobile Financial Services, which had 110 participants from 56 countries.
Highlights from the report include:
- The mobile money industry continues to grow and is now expanding across more regions. With 219 services in 84 countries at the end of 2013, mobile money is now available in most developing and emerging markets. The question is no longer whether mobile money services are available, but how to ensure that the industry continues to grow sustainably.
- Competition is increasing in many markets as mobile money is becoming a mainstream product for a growing number of operators. 52 markets have 2 or more mobile money services.
- The number of active mobile money accounts is growing fast. In June 2013, there were over 60 million active mobile money accounts globally. An increasing number of services are reaching scale and 13 have over 1 million active users.
- With an increasing number of services reaching scale, mobile money continues to be a driver of financial inclusion. Mobile money extends access to payments and financial services beyond the reach of traditional financial institutions in many developing countries. At the end of 2013, nine markets already had more mobile money accounts than bank accounts, compared to just four last year.
Click here to download the full report.