Mobile payments to rise by 58.5% in 2015

BARRING any unforeseen circumstances, the mobile payments platform in Nigeria and other part of the globe, is expected to have witnessed about 58.5 per cent growth by the end of the year.
 
Besides, a revenue value of about $712 billion has also been projected to accrue to operators’ within the same period.
 
Speaking at the 2015 Card Expo Forum in Lagos, Vice President and Area Business Head, West Africa, MasterCard, Omokehinde Ojomuyide, said the world is changing and attention is shifting fast to mobile technologies.
 
Ojomuyide noted that today, 90 per cent of users now move between devices to accomplish a goal, be it on smartphones, Personal Computers, tablets and televisions.
   
According to her, 52 per cent of all online shopping are now done from mobile phone and tablets, stressing that this projects huge values for retailers, which include that through contactless payments, retailers can benefit from increased global transaction values and volumes.
   
She said the mobile payment ecosystem is expected to see 35 per cent average yearly growth from 2012 to 2017. .
   
But if the mobile money/payment ecosystem must champion expected growth in the drive towards financial inclusion, the Chief Executive Officer, Airtel Nigeria, Segun Ogunsanya advocated a review of the current mobile money model in Nigeria. He said a telecommunications company-led model will help expand retail banking, thereby driving financial inclusion in the unbanked segment.
   
Currently, telecommunications companies are not permitted to provide their own mobile money services as the current model approved by the financial regulator, Central Bank of Nigeria, empowers banks to provide mobile money services while telecoms companies play only a supporting role.
   
Speaking at a forum in Lagos, Ogunsanya said for the mobile money market to reach its full potential, it is important that restrictions on telecommunications companies activity in m-money are lifted. .
   
According to him, Agency/Agent Banking as well as mobile money can help deepen penetration in retail banking in the country, suggesting that the mobile money sector is rather slow at this time because they are led by banks.
   
Furthermore, the Vice President and Area Business Head, West Africa, MasterCard, said today 66 countries accept MasterCard contactless payments, with about 2.5 million retailers worldwide. .
   
She disclosed that 33 per cent shoppers abandoned an online transaction if not optimised for mobile.
   
On security, she said that making mobile payments more secure has become extremely crucial if there must be more users. She disclosed that MasterCard Contactless transactions are just as secure as using chip and pin
   
“MasterCard Contactless cards, Near Field Communications (NFC)-enabled-phones and other devices allow consumers to make secure payments everyday. Two in three phones will come with NFC (near field communication) by 2018. MasterCard’s new Digital Enablement Service (MDESI) is designed to tokenize a consumer’s financial information”, she stressed. .
   
While she revealed that consumer interest in new payment solutions is high, Ojomuyide said 85 per cent of users find multiple platforms confusing. .
   
She disclosed that consumers are looking for simpler way to pay no matter where they are. .