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Mobile Financial Services Market Opportunities for Telcos in Latin America

Mobile Financial Services Market Opportunities for Telcos in Latin America

Summary

Latin America’s mobile subscriptions reached 112% of population in 2017. However, only 11% of the total population is mobile money users. In the region, MFS has not reached significant scale yet due to low awareness of MFS, security concerns over mobile payments, and low broadband penetration.

Given that the vast majority of Latin American countries fall under undeveloped markets, the opportunity for telcos to offer consumers mobile financial products is still present. No country in the region presents a penetration above 50% of Mobile Money Users.

The lack of smartphones and mobile broadband altogether create a high barrier to entry in the MFS market. Although smartphone penetration reached 68% of the population in Latin America, only 55% of people have access to mobile broadband.

Upper middle income countries are significantly different from middle income countries in terms of the MFS market as these countries show the highest account ownership within the traditional banking system. Telcos generally play a small role or size a less lucrative opportunity in MFS. As a result MFS are being adopted at a slower rate.

Mobile Financial Services Market Opportunities for Telcos in Latin America, is a new Telecom Insider Report, provides an executive-level overview of mobile financial services (MFS) in Latin America. It delivers deep qualitative insight into the telco service portfolios and positioning strategies in the region, analyzing key trends on telcos' mobile financial practices, business models to foster their in the mobile financial space, and case studies.

It provides in-depth analysis of the following -

  • Core portfolio of mobile network operators' mobile financial services.
  • Recent development and the current state of mobile financial services in the region while also providing a closer look at market conditions of MFS adoption.
  • MFS case studies from Latin America giving insight into mobile network operators’ strategies and ambitions.
  • Key findings and recommendations for the Latin America mobile financial services market.
Companies Mentioned: Telefonica, America Móvil, Telcel, Tigo, Millicom, Vivo Brazil, Western Union, Paypal, Mastercard.

Scope
  • Given that the vast majority of Latin American countries fall under undeveloped markets, the opportunity for telcos to offer consumers mobile financial products is still present. No country in the region presents a penetration above 50% of Mobile Money Users.
  • The lack of smartphones and mobile broadband altogether create a high barrier to entry in the MFS market. Although smartphone penetration reached 68% of the population in Latin America, only 55% of people have access to mobile broadband
  • Upper middle income countries are significantly different from middle income countries in terms of the MFS market as these countries show the highest account ownership within the traditional banking system.Telcos generally play a small role or size a less lucrative opportunity in MFS. As a result MFS are being adopted at a slower rate.
Reasons to buy
  • Offers a comprehensive and detailed understanding of mobile financial services (MFS) opportunities in the Latin America markets.
  • The report investigates MFS trends, milestones, and competitive attributes, looking in particular at the various drivers and inhibitors in the Latin America region.
  • To study Latin America’s most competitive MNO MFS provisions, in order to inform strategic decision-making.
  • The report discusses commercial and technical developments in the wider mobile money market and what these developments might mean for the future.


Executive Summary
Section 1: Mobile Financial Services (MFS) Portfolio 6
Definition and Evolution
MFS portfolio definition 7
MFS market evolution and current market phase 8
Section 2: MFS Opportunities for Telcos in Latin America 9
Key drivers and inhibitors enabling MFS success for telcos 10
Market conditions conducive to MFS adoption 11
Section 3: Case studies 12
Tigo’s Paraguay experience 13-14
Telcel‘s partnership with Paypal 15-16
Section 4: Key findings and recommendations 17
Key findings and recommendations 18
Appendix 19
Acronyms and definitions 20
Mentioned companies 21
About the authors 22
About GlobalData 23
Contact information 24
List of Figures
Exhibit 1: MFS core portfolio - definitions 7
Exhibit 2: Typical development of mobile money in Latin America 8
Exhibit 3: MFS key growth drivers and inhibitors 10
Exhibit 4: MFS market opportunity in Latin America, 2017 11
Exhibit 5: Paraguay smartphone and mobile money user penetration, 2014-2023 13
Exhibit 6: Sample Tigo mobile money marketing 14
Exhibit 5: Mexico smartphone and mobile money user penetration, 2014-2023 15
Exhibit 6: Sample Telcel Pay mobile money marketing 16

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