mFinance to see innovative business models in Asia-Pacific telecom market



With as many as 2.3 billion mobile finance users in APAC by 2015, mFinance will become a service that will forever change APAC’s financial behavior by introducing innovative business models, partnerships and best practices, according to Pyramid Research.



As the largest mobile market in the world, Asia-Pacific accounted for 48.5 percent of the global mobile subscribers in 2010. Due to its size, the APAC region has the potential to comprise 2 billion mFinance users.




In emerging markets, operators know that their subscriber base overlaps with the segment of the population that lacked access to financial services”, said Daniel Yu, senior analyst at Pyramid. Operators have attempted to address this demand by adding services such as mobile remittances, mobile top-up, and air time transfer through SMS-enabled platforms, therefore instantly bringing banking services to the lower-income segment”.




From a demand perspective, mFinance possesses elements that can propel mobile usage to another dimension, adding another vital aspect of human interaction to a mobile phone indicates. However, the benefit isn’t just one-sided, because mFinance embraces the possibility to become an agent to reinforce an operator’s market position, improve business performance and further cultivate user loyalty.




Operators in developing markets will continue to benefit from the trust that end users have in their services. While operators in developed markets will benefit from the trust factor among users who are already well versed in electronic payment options. Developed markets, however, will require technology standardization in order to realize their market potential.




Up to 2.3 Billion Mobile Finance Users in APAC by 2015 outlines the existing mFinance services in Asia-Pacific, with a focus on insights in emerging markets rather than in developed markets.




The report examines regional market dynamics to reveal the potential mFinance has to meet the demand of the considerably underserved population. It concludes with two case studies from the advanced and emerging markets in the region where mFinance has gained traction, as well as a discussion of the initiatives operators have taken to promote mFinance services.



By Team


[email protected]