The use of contactless payments and e-commerce has grown, indicating an acceptance of digital payments, and a user base that is ready for more innovation and new payment services. But not everyone has been able to participate in this payment revolution. According to The World Bank, in 2017 there were 1.7 billion unbanked adults worldwide without access to bank accounts or banking services. Access to banking can greatly improve people’s lives by enabling them to save for healthcare or education, to build a business, to manage their financial risk and to get easier access to government payments or pay bills online. All of these factors can create a direct improvement in quality of life and increase economic activity. Mobile telecommunication companies have played a leading role in bringing many different types of services to consumers. As mobile phones have proliferated and increased in capabilities and features, so has the ability of mobile network operators (MNOs) to create an impact on the way that people access financial services. Today, MNOs are empowering consumers in countries around the world, and through partnership with payments providers, they are bringing new services to developing markets.
MNOs have direct access to a large customer base that includes the harder-to-reach segments of the underbanked and unbanked. Adoption rates are likely to be high due to the MNO offering persuasive user benefits such as affordability and ease of use, and the majority of the customer base is likely to be comfortable with and have trust in mobile as a secure and easy to use transaction platform. Such a high penetration of smartphone usage, mobile payments are a viable solution to access life-enhancing services, especially for the underserved and underbanked segments. Ultimately, promoting financial inclusion not only helps alleviate poverty, but enables entire economies to thrive. For the region as a whole, the rapid adoption of contactless payments suggests that people are ready to embrace advanced services that make their lives easier. Payment providers can support MNOs with proof of payment for issuance and network capabilities for remittances, person-to-person (P2P) and person-to-merchant (P2M) payments, and digital wallets. With the large user base and trust in MNOs, these superapps have tremendous growth potential and can reach a very broad market, including underserved segments, increasing the potential for meaningful and responsible growth. As the economy continues to struggle, it is more important than ever to expand merchant access to payment acceptance and drive financial inclusion for those in need.