The Mobile Payment industry has demonstrated an increasing presence and influence in Asia. Despite the promise it shows, there are still challenges that remain for those who are looking to take part in this industry. A recent survey conducted by GMO Research (GMOR) provides insight into both the challenges and opportunities of the matter.
Two of the biggest practical factors creating resistance to mobile payment in Asia are large ‘unbanked’ populations and a lack of reliable infrastructure (e.g. mobile phones, internet connections). From a consumers’ point of view, GMOR’s survey found that the biggest reasons for avoiding mobile payment are a preference for cash and concerns about online security.
If these issues were addressed, however, the market potential for mobile payments could be enormous. Of the six countries surveyed by GMOR – China, India, Thailand, Malaysia, the Philippines and Indonesia – every single one agreed that they would use mobile payment if the obstacles to it were removed. The most overwhelming response came from the Philippines, where 76.9% of respondents expressed willingness to adopt the technology.
The next question to ask is, what do Asian consumers wish to do using mobile payment? The most popular services from the GMOR survey are payment of phone/internet bills, utilities, groceries and leisure activities such as event tickets and eating out. There is a clear desire in Asian countries to use mobile payment, so as long as app providers can overcome consumers’ concerns, they have the potential to tap into significant new markets.
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