Wednesday, June 12th 2013

Mobile payment or M-Payment is money transfer made via a mobile phone and is strictly regulated. This is one of the latest technologies for transferring money from one party to the other and both banks and mobile companies are enthusiastic over the latest technological advance which promises to make banking faster and easier. Mobile banking is prevalent in many parts of the world, and is especially in vogue in the more well-connected countries.

Asia leads the way in mobile commerce, which isn’t surprising. The penetration of mobile phones in almost all parts of the continent meant that the use of mobile commerce was not far coming. Singapore leads the way with 100% mobile coverage, a rarity for any nation. South Koreans also show a preference for mobile payments, with citizens making mobile payments between two private individuals a lot more often than using the service for purchases. The country also has a number of partnerships with local service providers. With discussion of technology, can Japan be far behind? The country has the most technologically advanced financial service sector in the world and mobile payments are quite prevalent. China also makes it to the top ten with its large population ever ready to try out new financial and technological services.

Mobile payments have taken hold in North America in a big way. Canada is number two for mobile payments in the world, which is no surprise considering it has some of the best mobile services infrastructure and offers excellent coordination between the various authorities. USA also has a good record for developing financial products and has a high prevalence of mobile commerce.

The Middle East, with its immense wealth and love for the latest technology is not left behind. The UAE has an excellent mobile payment system and people are making use of it. Saudi Arabia has the highest rate of purchases made over the phone and makes it into the top ten.

Kenya is another country that has a large rate of mobile payments, up to 68%! And the best part is that Kenya is influencing other developing nations in Africa. UK is the top player among European countries, given the high mobile phone usage in the country. Soon enough, we will see that M-Payments have become a global phenomenon and are as prevalent as credit cards and online banking are today.