Race is on between banks and mobile operators for your money
Low levels of formal banking services in emerging economies, together with high smartphone penetration, provide near perfect conditions for growth of mobile payments
A new partnership between MTN and MasterCard has given mobile payments in Africa yet another boost. Over the past decade, emerging market economies in Asia and Africa have been at the forefront of mobile payments innovation, with the likes of China’s WeChat or Kenya’s M-Pesa seen as leaders in their fields.
Low levels of formal banking services in these economies, together with high smartphone penetration, has provided the perfect recipe for the growth of mobile payments. That said, mobile wallets and other related services have had limitations on the extent or type of payments that can be made. Internet transactions, where the majority of e-commerce is done, has been one such limit...