Scope of mobile payment in 2017 by Mahindra Comviva

Scope of Mobile Payment in 2017

Â© Copyright Comviva Technologies Limited. 2017

Global landscape  Innovations have taken place in various ways, mostly to meet local needs.  It began in the Philippines with the introduction of Smart Money, the first electronic cash card which was linked to a mobile phone.  Soon, spread into other emerging markets such as Kenya and Pakistan.  Innovations in the developed market are now gaining pace with the availability of NFC enabled handsets, use of mobile wallets, app based innovations, etc.  With every passing day, share of non-banks are going to increase along with rising usage of mobile wallets.  The scope of mobile payments is widening and is now supporting all types of technologies.  Older messaging technologies like SMS and USSD are now used to support remittances – both domestic and international, salary and loan disbursement.

Global landscape  In the emerging markets, mobile payment is being widely used for including unbanked mobile subscribers in the financial world.  Use of various technologies like QR codes, NFC, Bluetooth low energy on being used for various POS and mobile wallet transactions.  Mobile payment service providers are coming up with different schemes - transit payments, loyalty schemes, and many more.  All these are supported by Hosted Cloud Emulation (HCE) for driving the influx of customers.

Situation in various geographies and countries • Situation varies from country to country. • Technologies and services vary sharply between developed and emerging markets. • It is largely driven by demand and the infrastructure for providing such services to the customers. • Access to financial institutions vary between geographies. • The population of Africa, Asia and Latin America still lack access to financial institutions and this is where mobile money plays a pivotal role. • This is the reason why mobile money penetration has exceeded banking penetration to a large extent in various developing countries, especially Africa. • Geographically, the growth of mobile payments is still at a nascent stage in developed markets but opportunities are great. • As per a survey conducted by Ernst and Young covering 6000 consumers in 12 countries, although the future looks bright, yet consumers still have significant reservations over adoption. © Copyright Comviva Technologies Limited. 2017

Situation in various geographies and countries • In the survey, one in every five consumers responded that they use mobile money and one in every four said that they are not interested to use mobile money and they are not interested to use in the future as well. • Demographically, young users aged between 25-30 years or more, are more interested to use mobile money. • In the same survey, it has been revealed that country-wise, the usage pattern varies to a vast extent. India, Russia and China are the three countries which has registered the maximum adoption of mobile payment. • The lowest usage has been registered in Switzerland.

Factors affecting success of mobile payment operators  Engaging with customers, suppliers and stakeholders Continuous engagement with customers, suppliers and stakeholders through innovative routes not only helps gain new customers, but also reward the value chain for their effective collaboration.

 Aligning payment competencies with the organization To attain the right kind of balance, service providers align their core competencies with business units and liaise with the right kind of partner with experience in the field to leverage the best opportunities. These partnerships are then coupled with cloud, big data and analytics to sustain the long-term business objectives of the organization.

 Make investment to make the best use of the market Making the right kind of investment for leverage market opportunities is crucial, especially with regards to technology. This will help operators to capture a market quickly, especially the latent opportunity in high potential areas like insurance, banking, etc.

What to look forward to in 2017? Mobile Payment will be at the forefront  Millennial are going to move from using credit and debit cards for the convenience of mobile wallets.  With the use of NFC technology, mobile wallets are going to lead to customer delight in 2017.  All the major players in the mobile industry now have their own version of mobile wallet, and they will keep on registering an increased number of new users every week.

The on-demand economy  The on-demand economy will take the centre stage in 2017.  Customers will want more in 2017.  Consumers will demand that their purchases are delivered within a couple of days and this expectation is going to increase in the coming years.  They will not only want immediate delivery, they would want to know the status of their shipment, receive updates, etc. on a real time basis. © Copyright Comviva Technologies Limited. 2017

What to look forward to in 2017? Bluetooth will gain importance  Bluetooth will become more important than one can imagine in 2017.  People will move on to wireless communication and mobile payments which utilize Bluetooth will gain in the long run.  Although Bluetooth has gone through years of hurdles, but Bluetooth will definitely be an important influencer in 2017.

Thank you Visit us at www.mahindracomviva.com Disclaimer

Copyright ÂŠ 2017 Comviva Technologies Ltd, Registered Office at A-26, Info City, Sector 34, Gurgaon-122001, Haryana, India. All rights about this document are reserved and shall not be , in whole or in part, copied, photocopied, reproduced, translated, or reduced to any manner including but not limited to electronic, mechanical, machine readable ,photographic, optic recording or otherwise without prior consent, in writing, of Comviva Technologies Ltd (the Company). The information in this document is subject to changes without notice. This describes only the product defined in the introduction of this documentation. This document is intended for the use of prospective customers of the Company Products Solutions and or Services for the sole purpose of the transaction for which the document is submitted. No part of it may be reproduced or transmitted in any form or manner whatsoever without the prior written permission of the company. The Customer, who/which assumes full responsibility for using the document appropriately. The Company welcomes customer comments as part of the process of continuous development and improvement. The Company, has made all reasonable efforts to ensure that the information contained in the document are adequate, sufficient and free of material errors and omissions. The Company will, if necessary, explain issues, which may not be covered by the document. However, the Company does not assume any liability of whatsoever nature , for any errors in the document except the responsibility to provide correct information when any such error is brought to companyâ&#x20AC;&#x2122;s knowledge. The Company will not be responsible, in any event, for errors in this document or for any damages, incidental or consequential, including monetary losses that might arise from the use of this document or of the information contained in it. This document and the Products, Solutions and Services it describes are intellectual property of the Company and/or of the respective owners thereof, whether such IPR is registered, register able, pending for registration, applied for registration or not. The only warranties for the Company Products, Solutions and Services are set forth in the express warranty statements accompanying its products and services. Nothing herein should be construed as constituting an additional warranty. The Company shall not be liable for technical or editorial errors or omissions contained herein. The Company logo is a trademark of the Company. Other products, names, logos mentioned in this document , if any , may be trademarks of their respective owners.