Tailoring Mobile Financial Services to Market Conditions
2017.03.22   |   2500 pages   |   Customer Experience and Connection

Author:
Nicola Warren


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For many Mobile Financial Service (MFS) providers, the aim is to develop a slick technical solution to meet a universal financial need.  They are looking to create a mobile proposition that can easily be extended to multiple markets in order to maximise their returns.

The reality is that countries around the world vary in terms of their regulations, the development of their financial sector, their transaction flows, alternative means of transacting, and in many other ways.

MFS solutions that have been successful in one market, have struggled to repeat that success when rolled out into another. 

This report examines how three MFS solutions – M-PESA, Apple Pay and Orange Money – have been extended from their primary markets into a second market.  It looks at how the services were received and what changes have had to be made (if any) in order to increase relevance – and performance – in the new market. 

 

Companies: Orange Ivory Coast, Orange France, Vodafone UK, Safaricom, Vodacom Tanzania, Apple, Google, Samsung, Visa, MasterCard, American Express, Paypal, MTN, Western Union,

Countries: Kenya, Tanzania, USA, Australia, Ivory Coast, France,

Keywords: tailoring, Orange Money, money transfer, mobile banking, e-money, interchange, bulk cash disbursement, chip and PIN, license, competition, regulators, app, MFS, customisation, NFC, PayPal, KYC, USSD, Know Your Customer, contactless, micro-finance, Samsung Pay, STK, mobile money, electronic money, Android Pay, API, ecosystem, international money transfer, commission, interoperability, iOS, smartphone penetration, mobile financial service, P2P, financial inclusion, Android, M-PESA, Apple Pay, agent network, Aunti-Money Laundering, bill payment, integration, payment cards,

1

Overview

1

2

Introduction

2

2.1

Background to the Report

2

2.2

Report Content

2

2.3

Currency and Conversions

3

2.4

Further Questions and Feedback

3

3

Reasons for MFS Market Customisation

4

3.1

Introduction

4

3.2

Financial Inclusion

4

3.3

Regulatory Environment

4

3.3.1

Know Your Customer (KYC)

5

3.4

Smartphone Penetration

5

3.5

Consumer Needs

5

3.5.1

Pull versus Push Factors

5

3.6

Competition and Availability of Alternative Financial Solutions

6

4

Vodafone

7

4.1

Introduction

7

4.2

M-PESA Kenya

7

4.2.1

The Proposition

7

4.2.2

Financial Inclusion

9

4.2.3

Regulation

9

4.2.4

Smartphone Penetration

10

4.2.5

Consumer Needs

10

4.2.6

Competition and Alternative Financial Solutions

10

4.3

M-PESA, Tanzania

11

4.3.1

The Proposition

11

4.3.2

Financial Inclusion

13

4.3.3

Regulation

14

4.3.4

Smartphone Penetration

15

4.3.5

Consumer Needs

16

4.3.6

Competition and Alternative Financial Solutions

17

5

Apple

18

5.1

Introduction

18

5.2

Apple Pay, USA

18

5.2.1

The Proposition

18

5.2.2

Financial Inclusion

20

5.2.3

Regulation

21

5.2.4

Smartphone Penetration

21

5.2.5

Customer Needs

22

5.2.6

Competition and Alternative Financial Solutions

22

5.3

Apple Pay, Australia

24

5.3.1

The Proposition

24

5.3.2

Financial Inclusion

25

5.3.3

Regulation

26

5.3.4

Smartphone Penetration

27

5.3.5

Consumer Needs

27

5.3.6

Competition and Alternative Financial Solutions

28

6

Orange

30

6.1

Introduction

30

6.2

Orange Money, Côte d’Ivoire

30

6.2.1

The Proposition

30

6.2.2

Financial Inclusion

32

6.2.3

Regulation

32

6.2.4

Smartphone Penetration

34

6.2.5

Customer Needs

34

6.2.6

Competition and Alternative Financial Solutions

36

6.3

Orange Money, France

37

6.3.1

The Proposition

37

6.3.2

Financial Inclusion

39

6.3.3

Regulation

39

6.3.4

Smartphone Penetration

40

6.3.5

Customer Needs

40

6.3.6

Competition and Alternative Financial Solutions

41

7

Key Findings

43

8

Recommendations

44

 

Appendix – Feedback Questions

45

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