# How does a Mobile Wallet vary in different countries?
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-11-24
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Revolutionising Payments: The Rise of Mobile Wallets in Africa
Meta Description: Discover the simple and secure ways to complete transactions directly through a mobile device in Africa. Learn how Mobile Wallets are empowering consumers and
URL: https://financedigest.com/how-does-a-mobile-wallet-vary-in-different-countrieshtml

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By **Shane Leahy**, CEO of Tola Mobile

![Shane Leahy](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd241117-2-274x300-1736843202463-compressed.png)

Shane Leahy

Simple and secure ways to complete transactions directly through a mobile device has become increasingly popular over the last three years globally for all users through a number of different technologies, from Mobile Wallets, to the [launch](https://www.pymnts.com/mobile-wallet-adoption-2017/) of platforms like _Apple Pay_ and _Android Pay_ for Smartphone users.

These technologies are revolutionising payments, particularly for the millions of unbanked people living in countries across Africa, who can now use a Mobile Wallet to pay for goods and services without the need for physical cash or credit. However, due to the varying levels of [technological advancement](https://www.financedigest.com/the-diabetic-socks-market-to-prove-its-servility-to-technological-advancements.html "The Diabetic Socks Market To Prove Its Servility To Technological Advancements"), the African market has now adopted a very different version of the Mobile Wallet to the one used in other regions.

**The African Mobile Wallet**

In Africa, the development of [Mobile Wallets has enabled a seamless payment process by allowing merchants to take payments directly from mobile operator](https://www.financedigest.com/augmented-reality-ar-virtual-reality-vr-to-dictate-the-growth-of-mobile-operating-tables-market.html "Augmented Reality (AR)/Virtual Reality (VR) to dictate the growth of Mobile Operating Tables Market") provisioned wallets, where customers can deposit funds into their account and use to purchase goods.

A clear comparison to the African mobile wallet being used in other regions is apps such as Paypal and Google Wallet that allows customers to upload their credit or debit card details to their mobile to make [online payments](https://www.financedigest.com/online-payment-gateway-market-to-witness-a-cagr-of-10-3.html "Online Payment Gateway Market to witness a CAGR of 10.3%"), and one-touch NFC payments from mobile software like Apple’s Apple Pay. Whilst Apple [Pay and Paypal have offered consumers another way to complete purchases, it can however be very limiting; only certain merchants allow you to pay for products](https://www.financedigest.com/flexible-pay-can-boost-low-productivity-in-the-uk.html "Flexible pay can boost low productivity in the UK") and services using NFC touch in-store, or Apple Pay online. It’s convenience makes it very appealing to the consumer, however unlike Mobile Wallets in Africa, the actual form of payments is essentially still just a bank card payment from a [linked bank account or against a linked credit](https://www.financedigest.com/credit-suisse-to-repay-further-750-million-to-greensill-linked-fund-investors.html "Credit Suisse to repay further 0 million to Greensill-linked fund investors") card.

The [technology needed to utilise a Mobile](https://www.financedigest.com/the-cleanroom-technology-market-to-be-on-the-mobility-move.html "The Cleanroom Technology Market To Be On The Mobility Move") Wallet in Africa and other regions is also very different.  For those wishing to pay via Apple Pay or Android Pay, customers will have to spend a minimum of £500 to purchase a smartphone which can [support the technology](https://www.financedigest.com/meeting-of-minds-using-technology-to-reimagine-mental-health-support.html "Meeting of minds: Using technology to reimagine mental health support"). Contrastingly, the only requirement to be able to conduct payments through a mobile wallet is to own a mobile phone with the operator; even the most basic Nokia with no internet or data connection can be used to complete transactions, as the menus used a low-level service menu provided on every GSM phone. Despite the simplicity of this technology, it is highly suited to the region’s level of technological development and is both secure and hugely empowering for consumers.

There are some parts of [Africa where physical bricks and mortar stores are poorly developed](https://www.financedigest.com/how-can-we-ensure-that-africas-energy-transition-aligns-with-its-development-ambitions.html "How can we ensure that Africa’s energy transition aligns with its development ambitions?") and mobile commerce does well to fill the gap. With current trends suggesting that mobile wallets have the potential to serve [over](http://techcabal.com/2016/03/07/mobile-wallets-the-key-to-seamless-payments-in-africa/) 500 million consumers by 2020 there are plenty of opportunities for merchants to generate more sales, not to mention that processing fees are significantly lower than those of debit or credit cards.

Africa has also seen significant growth via mPesa, a mobile phone based money transfer service that now has over 30 [million subscribers](https://www.financedigest.com/warner-bros-discovery-adds-2-million-subscribers-in-first-quarter.html "Warner Bros Discovery adds 2 million subscribers in first quarter") in territories including Kenya, Congo, Mozambique and Ghana. The [growing integration](https://www.financedigest.com/power-management-integrated-circuit-pmic-market-is-projected-to-grow-at-6-4-during-2021-2028.html "Power Management Integrated Circuit (PMIC) Market is projected to grow at 6.4% During 2021-2028") between these operators and Mobile Wallet users has allowed for more seamless transfers of funds. An additional benefit to African residents carrying a Mobile Wallet is that it eliminates the worry of carrying physical cash and cards.

**[Technology Developments](https://www.financedigest.com/research-and-technological-innovations-to-bolster-developments-in-animal-model-market.html "Research and Technological Innovations to Bolster Developments in Animal Model Market") in the Region**

Mobile payments are now very well established in Africa and the infrastructure provided by operators is now as important to the continent’s commerce, as Visa, Mastercard and AMEX is in the Western world. They act as a basis for innovation which mobile giants like Apple and Samsung should look to take inspiration from and accelerate their own versions of Mobile Wallets in more developed markets.

By skipping the “desktop generation” and going straight to mobile, Africa has supported its developing infrastructure by offering consumers the chance to complete transactions via carrier billing, something that regions like [Europe should consider building into their payment services](https://www.financedigest.com/credit-agricole-and-caceis-to-buy-rbc-investor-services-europe-unit.html "Credit Agricole and CACEIS to buy RBC Investor Services’ Europe unit") to appeal to a wider market and unlock more benefits.

A recent report from Ovum forecasted total carrier billing revenues will [increase](http://www.mobilemoneyrevolution.co.uk/global-carrier-billing-revenue-set-to-rise-by-10bn-to-hit-24-7bn-by-2019/) to $24.7bn in 2019 globally, from the $14.5bn in 2014 which offers merchants a real opportunity to offer innovative financial products and services. However, one of the biggest [challenges still facing](https://www.financedigest.com/how-to-overcome-the-challenges-faced-by-women-in-business-4.html "How to overcome the challenges faced by women in business") mobile money platforms is not being able to operate between countries, resulting in a limit to their appeal as a universal payment tools.

**The** [Impact on Merchants](https://www.financedigest.com/how-does-the-fca-deadline-extension-impact-uk-merchants.html "How Does the FCA Deadline Extension Impact UK Merchants?")

Mobile payments in Africa [enable companies](https://www.financedigest.com/game-company-roblox-enabled-girls-sexual-exploitation-lawsuit-claims.html "Game company Roblox enabled girl’s sexual exploitation, lawsuit claims") to receive and make real time payments throughout the continent, and merchants are very aware they need resilience and continuity in order to run and maintain their businesses effectively.

In other regions like Europe or the UK, the acquisition of the payments consumers make using their mobile phone is charged to the merchant at a much higher [rate compared to those in Africa, which might explain why the adoption rate of this technology remains relatively slow](https://www.financedigest.com/ecb-could-slow-rate-hikes-but-bond-run-off-should-start-soon-knot-says.html "ECB could slow rate hikes, but bond run-off should start soon, Knot says") in many Western regions. Recent research from ACI Worldwide [demonstrates](https://www.theregister.co.uk/2017/09/05/mobile_wallet_adoption_survey/) this, finding that just one quarter (25%) of consumers in Spain use mobile payments, as well as 17% in the US and 14% in the UK.

However is now estimated that by 2021, the global usage of mobile payments technology around the world will increase by more than a third, [caused](https://www.itproportal.com/features/the-key-to-mobile-wallets-isnt-payments/) primarily by the growing preference amongst brands to offer alternative payment methods and communicate with their customers instantly through mobile platforms. What’s more, it is predicted that merchants across Europe can expect [strong conversion rates](https://www.financedigest.com/stocks-fall-as-strong-u-s-payrolls-muddies-rate-bets.html "Stocks fall as strong U.S. payrolls muddies rate bets") of up to 70% for first time transactions and 88% for repeated digital content purchases.

Despite the clear differences in the technology being applied to Mobile Wallets in Africa and other regions, both versions present merchants with huge opportunities to offer a [strong customer](https://www.financedigest.com/strong-customer-authentication-must-be-adopted-to-make-open-banking-a-success.html "Strong Customer Authentication must be adopted to make open banking a Success") service and a seamless payment process. In Europe and the US, specific regulations don’t allow for MNOs to operate mobile [money wallets like they do in Africa](https://www.financedigest.com/with-the-end-of-easy-money-there-are-still-serious-opportunities-in-africa.html "With the end of ‘easy money’ there are still serious opportunities in Africa"), so it’s very likely we won’t see these develop in the same way. However, with the continued acceleration of the use of Mobile Wallets across Africa, the redefinition of the financial services [landscape in this region](https://www.financedigest.com/flooded-lead-acid-battery-regional-landscape-production-sales-consumption-status-and-prospects.html "Flooded Lead Acid Battery Regional Landscape, Production, Sales & Consumption Status and Prospects") will be fully inclusive and beneficial for all.


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