14 DAY TRIAL // A recently published study from ABI Research shows that one of the services that are expected to become very popular in the near future is the mobile person-to-person payment system. While the mobile banking services will also become popular soon, the research firm says that three times more subscribers will make person-to-person payments by 2011, compared to those who will conduct traditional banking operations via their mobile phones.
“The developing world is embracing mobile domestic person to person payments with enthusiasm wherever they are offered,” Senior Analyst Mark Beccue says. “It is becoming the first financial service for previously ‘unbanked’ people, and may make a real contribution towards lifting them out of poverty.”
ABI Research also says that banks will gain an ideal introductory financial service, and that they will also be helped by Mobile Network Operators (MNOs) to extend the availability of their offerings. While traditional banks found it difficult to support brick-and-mortar operations in a series of developing regions, the availability of mobile services will enable them to extend their reach although they won't have to come up with major infrastructures.
Even so, it seems that the development of this market will still have to face a variety of challenges. According to Beccue, there are regulatory barriers that will alter the growth of mobile financial services in developing countries. He also adds that each country sports its own banking rules, and that those who are trying to build a financial system will have to face these rules. On the other hand, Beccue also states that these services are becoming more and more popular, despite the barriers they have to face.
The “Mobile Banking and Funds Transfer” study from ABI Research offers detailed information on other aspects of mobile financial services as well. Those interested in learning more can find the report on the research firm's website.