Market Insight

Mobile money development H2 2017

February 22, 2018

Ruomeng Wang Ruomeng Wang Research & Analysis Manager, Security - Fintech & Blockchain

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IHS Markit published mobile money market monitor H2 2017, see the full report here.

Device-based mobile payments services global expansion Q3&Q4 2017

Google Pay accelerated its global expansion during Q3 and Q4 2017, it added four new markets: Spain, Ukraine, Brazil and the Czech Republic. Apple and Samsung continued to lead the global expansion of device-based mobile payments services. Apple Pay’s expansion was focused on western Europe and the Middle East, whereas Samsung further developed Samsung Pay’s presence in Latin America.

Alipay and WeChat deepen penetration in Southeast Asia

Alibaba’s affiliate Ant Financial partnered with Pi Pay in Cambodia to enable Chinese tourists to use Alipay. Pi Pay is a popular mobile payments service amongst Cambodians and has 1400 merchant partners across the country. Tencent was granted a full e-payment license in Malaysia, which enables it to launch its WeChat payment service in early 2018. Malaysia is a top travel destinations for Chinese tourists and also has 20 million WeChat messaging users because of its large Chinese speaking population. Adding payments services in Malaysia will help Tencent to identify more opportunities to develop m-commerce and increase adoption for other services such as messaging, commerce, games, open platforms etc.

Car-hailing apps expand mobile payments offerings through diversified partnerships

Uber teamed up with Vietnam-based payment service MoMo to expand its reach in Southeast Asia. The partnership will help it leverage MoMo’s 5 million users and allow them to link their MoMo account with Uber as a payment method instead of registering bank card details. Uber’s rival, the Malaysia-based taxi hailing company Grab is applying for an e-license in the Philippines to launch its mobile payments service GrabPay in early 2018. This move comes after the expansion in Singapore: Grab added in-store and P2P mobile payments service for GrabPay’s Singaporean users.

Airtel and Orange step up to develop OTT mobile payments services

Airtel’s subsidiary Airtel Payments Bank partnered with OTT messaging service Hike to strengthen each other’s digital payments services in India. Airtel Payments Bank will integrate its services with Hike’s digital wallet, including savings accounts and bill payments. Orange expanded Orange Cash Joven in Spain following the launch in France in 2016. The service targets teenagers between who have smartphones and lack of access to make digital transactions.

Regulators tighten rules to increase mobile payments security and interoperability

The European Commission announced the Payment Services Directive (PSD2) rules to strengthen online and mobile transaction security across European countries. Singapore Payments Council launched a standard QR code specification for the country for mobile payments services in November 2017. The Communications Authority (CA) of Kenya introduced new laws to enforce mobile money service interoperability in the country. 

Research by Market
Mobile & Telecom
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