M-Wallets: Will They Ever Become Cash Cows?
BOSTON, July 10, 2013
BOSTON, July 10, 2013 /PRNewswire/ -- Despite a few m-wallet success stories,
it remains unclear whether m-payment services are attractive enough for
operators to justify the millions of dollars invested in these services.
Providing m-payment services for the unbanked has a clear and immediate effect
on the operator's churn rate and revenue, but in the developed world this is
still more of an expectation, according to a new complimentary Analyst
Insight: M-Wallets: What's in It for Mobile Operators?
Download the full Analyst Insight here.
"The revenue potential associated with m-payments services for the unbanked is
large and immediate. Safaricom launched the service in April 2007; in just two
years, in 2009, M-Pesa accounted for 10% of the operator's mobile service
revenue, and in 2012, 19%. On the other hand, the ecosystem needed for
m-wallet services to become mass market in the developed world is very complex
and takes a long time to build. It took around one decade after the initial
investments for NTT Docomo's m-payment service to yield relatively sizable
revenue, 9.3% of total service revenue in 2012," explains Stela Bokun, Senior
Analyst at Pyramid Research and author of the Analyst Insight.
This Analyst Insight draws on Pyramid's upcoming report, From Digital Content
to M-Wallets: M-Payment Strategies for Operators. In this report, Pyramid
critically assesses mobile operators' involvement in the m-commerce value
chain and the opportunity that this ecosystem presents for them. To receive an
email when this report is available, please contact Jennifer Baker at
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SOURCE Pyramid Research
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