BACK TO CONTENTS
FOCUS 31
GLOBAL M-COMMERCE ROUNDUP
INDIA With an estimated 40% of India’s population “unbanked”
, Kenya’s M-Pesa solution is
fi nding favor. The service’s rollout started this year because government regulations require telcos to partner with banks on mobile payment. In M-Pesa’s case, Vodafone India has linked up with ICICI, India’s largest private sector bank. Critics blame that restriction on the slow growth of mobile, arguing that banks are slower to innovate than telcos and that such partnerships force potential customers to endure the hassle of paperwork. Indian regulators argue that the cautious approach will pay off long term. At the moment cash is still king in India, accounting for 90% of all retail payments.
SOUTH KOREA Year-over-year growth of credit card spending in South Korea slowed to 4.7% in 2013. This slowdown could continue as household debt has reached record levels, and the government has introduced tax incentives to encourage consumers to choose other forms of payment. Credit card companies are reeling from the aftershock of a security breach involving the data theft of more than 100 million credit cards. Security concerns could restrain growth of mobile payment, but smartphone maker Pantech has introduced a scheme to authenticate payments with fi ngerprints.
JAPAN Japan was one of the fi rst countries to embrace mobile payment. By December 2010, comScore reported that a tenth of Japanese mobile subscribers had used a mobile wallet to make a purchase. New players hope to persuade merchants to accept credit cards by turning mobile phones into card readers. These solutions could save merchants money, as they wouldn’t need to invest in expensive point-of-sale systems and could circumvent high transaction fees. Tokyo-based Coiney provides merchants with a small attachment to their smartphone, that enables credit card payments to be processed with no installation fee and a modest 3.24% transaction fee.
IRELAND
Ireland has become something of a hub for companies like Facebook and PayPal in Europe as the government is keen to encourage electronic forms of payment. The Central Bank of Ireland says the country has the highest ATM withdrawal per capita among major European countries and still pays half of its social welfare payments in cash. New solutions include mobile billing provider txtNation, which has partnered with Vodafone and O2 to enable customers to make one- click purchases on mobile websites that are charged to their phone bill.
BRAZIL The Brazilian government has created a framework it hopes will encourage a thriving mobile payments sector. It has introduced a new legal entity called a “payments institution,” which can include non-banks as mobile payment and banking services providers. The Brazilian Central Bank has been tasked with regulating these institutions, and will grant them access to domestic payment rails. The government has also called for a common standard for m-payment initiatives. Lack of consumer awareness may constrain progress. Brazil’s fi rst mobile payment service, Zuum, launched in 2013 by Telefónica/Vivo, and MasterCard Worldwide, has said educating consumers is harder than building a network. With mobile penetration at around 23%, it is surely only a matter of time before consumers become less reliant on cash.
© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.
REINVENTING MONEY
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66