Africa and Asia share several things in common. These include huge land masses, traditionally undereducated populations and a huge technological backlog when compared to Europe and America. Both have recognized that mobile is the key to rolling out their futures. But who is better when it comes to being in the mobile money?
According to an item on Global Post from Agence France-Presse dated 27 February 2013, Africa and Asia are way out front in the rush to substitute mobile for cash and credit cards. This may have more than a little to do with the fact that banks and auto-tellers are still only thinly on the ground in the developing world. Right now the mobile money winners are Kenya, Madagascar, Tanzania and Uganda.
While previous surveys may have been less than accurate when it came to discriminating between registered and active users, the results released by mobile operators’ industry association GSMA in February were far more realistic. The findings include the following data for June 2012:
- Thirty million people worldwide made 224.2 million mobile transactions
- The total value of these transactions totaled $4.6 billion
- They also outclassed PayPal throughout the fourth quarter of 2012
This is still small change compared to the total population. Moreover mobile money is obliged to hold an equivalent rolling amount in trust. Which way is the movement going? Will Africa’s 4,126 billion get the better of Asia’s 1,072 at least pro rata? Taken together they already approach 75% of the world population – a cup of gold indeed for mobile money vendors.
The GSMA MMU Deployment Tracker paints a picture that makes the answer seem almost obvious. West Central and Southern Africa are alive with new developments, as are Afghanistan, Pakistan, Nepal and Bangladesh. To the north of China Mongolia’s MobiCom is active. Between the two the GSMA map of new mobile money developments is silent.
Despite China being active in GSMA this is not the whole picture. According Research and Markets China was already one of the “upcoming destinations for mobile money services” by April 2012, thanks to “its wide mobile subscriber base, rapid smartphone penetration rate, increasing government support and the consumer’s increasing preference for mobile commerce”.
Since then the China government has intervened to enforce compliance with XXMHZ standard. It becomes clear that the Asia superpower is streets ahead in network inter-operability and has already stolen its march over Africa. If the GSMA map showed implemented projects we would see a different picture.
REFERENCES
http://za.news.yahoo.com/mobile-money-emerging-markets-east-africa-leading-way-050159777.html
http://www.globalpost.com/dispatch/news/afp/130227/africa-asia-lead-mobile-money-boom
http://www.gsma.com/mobilefordevelopment/programmes/mobile-money-for-the-unbanked/tracker
http://www.researchandmarkets.com/reports/2124589/future_growth_potential_of_mobile_money_in_china
Let us know what you think ….