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Emerging markets drive the growth of mobile payment

Hamburg-based secondary market research specialist yStats.com has published a new market report titled “Global Mobile Payment Methods: First Half 2017”. According to Yücel Yelken, CEO & Founder of yStats.com, “The report’s findings show that emerging markets, especially in Asia, drive the adoption of mobile payment methods around the world.”

Mobile payment continues to evolve across the globe, led in the first place by emerging economies in Asia and Africa. According to a recent survey cited in this report by yStats.com, Indonesia, China, India and Egypt occupied the top positions in a ranking of countries by share of Internet users who are likely to start using mobile payments in 2017. Consumers in emerging markets in general had a more positive image of mobile payment and mobile money services than those in developed markets. For example, more than three-quarters of consumers surveyed in developing countries believed that using mobile money improves their purchasing experience, compared to less than 50% in developed economies.

The adoption of mobile payment methods among consumers in different countries is driven by the factors of convenience, ease of use, payment processing speed and the ability to integrate loyalty programs into the payment app. At the same time, security is the main consideration of global consumers when deciding to use mobile payments, outranking convenience. In addition, more than one-half of smartphone users in Germany would like to see lower fees than for using other payment methods and those in Canada desire a higher acceptance level among merchants.

Mobile wallets are among the most prominent mobile payment methods. In India, the value of mobile payment transactions grew nine-fold in the past two years. In the USA, mobile wallets account for most of the in-store payment value with numerous competing offers from merchants, banks and tech companies. Multiple consumer surveys cited in this report by yStats.com, including in Argentina, Germany, and the USA, reveal banks as the preferred providers of mobile payment solutions. Nevertheless, the examples of the success of third-party providers Alipay and WeChat Pay in China confirm the strong potential of mobile payment solutions by non-bank providers. Moreover, the global usage figures of Apple Pay, Samsung Pay and Android Pay are projected to reach new heights in 2017, as they continue to launch in new markets and run promotional campaigns in existing ones.