Things we learned at the Bango Alternative Payments Nexus
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© 2016 Bango plc bango.com Things we learned at the Bango Alternative Payments Nexus
Transcript of Things we learned at the Bango Alternative Payments Nexus
© 2016 Bango plcbango.com
Things we learned at the Bango Alternative Payments Nexus
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“Growth in payment card adoption is too slow”
• Windsor Holden at Juniper Research kicked off stating that there is over 2.5 billion unbanked adults worldwide, with over 80 countries having an unbanked population in excess of 50%.
• In Latin America, Central and East Europe and Rest of Asia Pacific, smartphone penetration is already well in excess of 100%. The payment card market is not progressing fast enough to meet the needs of these consumers.
• In developing markets, debit and credit card ownership is often extremely low. Even in rapidly advancing economies like India or Indonesia, there will not be enough growth in card payments to serve the mobile market.
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Operators cannot make DCB commercially viable in every market
• The adoption of mobile wallets has been strong in LATAM, driven by operators who cannot make pre-paid Direct Carrier Billing (DCB) commercially viable. DCB and credit cards are available in Brazil, but are not used for online purchases due to regulatory issues, taxation, and do not meet user needs.
• Where this is the case, payment providers such as POP Recarga can offer an alternative payment method which meets the market requirements in a way that operators simply cannot.
“Payment solutions such as POP Recarga’s meet the needs of the market, creating a payment solution which fits the daily, trusted routines of the Brazilian smartphone user.”
- Juliano Braz, Founder Pop Recarga
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App stores have big ambitions for alternative payments
“We need to ensure every customer has an effective way to pay. Microsoft is unifying the Windows 10 experience across all devices, including making payment methods as widely available as possible”
- Grahame Riddell, Billing Director at Microsoft.
• DCB is now available to PC, tablet, smartphone and Xbox One users under Microsoft’s new platform approach. Having a unified experience supported by alternative payment methods is essential to the worldwide growth of the Windows Store.
• Microsoft are already using wallets to serve markets such as China and Japan, with payment providers such as Alipay established in these regions.
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1 in 3 mobile connections in Africa are linked to mobile money accounts
• Jide Akindele, founder of MMIT, gave compelling details of their findings on how Africa is embracing alternative payment solutions, including how the Sub-Saharan market accounts for the highest growth of mobile money payments, with 1 in 3 mobile connections in Africa linked to mobile money accounts as of December 2015.
• Wallets are generally positioned for making real world payments such as transportation or grocery shopping, in Africa there is great interest and progress in using them for digital content and services.
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‘Content is king’ – entertainment drives adoption of alternative payment methods
“Users are engaged with digital content, but the vast majority still have no means to purchase content to enrich their experiences”.
- Jide Akindele, Founder, MMIT
• Bango has reported that new content such as the recent mobile gaming phenomenon Pokmon Go drives huge numbers of new DCB users.
• This has been seen with all top mobile titles and will only become more impactful as more payment methods become available to the unbanked who have no other way to access the content
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The size of the opportunity
2.5 billion unbanked adults
(World Bank)
Over 5 billion mobile accounts, with more than 3
billion smartphones (Ericsson)
Over 7 billion people worldwide
(United Nations)
Less than 2 billion payment cards
(creditcards.com)
700+ mobile operators, each with their own version
of carrier billing(GSMA)
Over 255 mobile money wallets across
89 countries (GSMA)
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Bango ties it all together
• Bango is the enabler of alternative payment methods and is fully prepared for ‘The Third Wave’ of payments.
• Payment Providers such as POP Recarga and MMIT can plug into the Bango Payment Platform to provide an alternative payment solution which fits the habits and needs of localized markets, offering the best payment solution on a region-specific basis.
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For more coverage of the Bango Alternative Payments Nexus, check out the teaser video below:
