How To Promote Mobile Wallet In LATAM ?

How To Promote Mobile Wallet In LATAM ?

Latinomerica is very different to Africa and Asia. Here the banked population is almost the 60% of population in countries like Brazil, Chile, Uruguay, Venezuela and Colombia (almost 50% of LATAM population).

From our personal perspective, the Mobile Wallet must be introduced through the early adopter’s people, aimed to banked people, the market share is bigger than unbanked and is more easier and cheap reaching this population, early adopters has the power to diffuse the use of Mobile Wallets as payment instrument on the population.

We can assume that more than 60% of smartphones owners are early adopters. (it is just an hypothesis). Are you agree ?. In affirmative case.

This information is public and you can find searching in Internet.

Basing in our hypothesis, is possible affirm that Young People, Business Men’s, University and College people, Fashion People, and other groups probably they would be the first  adopters of payments using Smartphones.

Imagine....

- Collecting money to pay group Launch or a Party in a pub to pay the invoice.

- A father giving money to their children’s for their expenses daily and getting control regarding expenses over their children’s using Mobile Wallets.

- Payments P2P, Domestic Remittances.

- International Remittances.

- Bill Payments.

- To buy Air Time Top UP.

- Disbursements Government to Consumer (G2C). Social Insurance, government social inclusion plans, Others.

- Paying Taxes (C2G)

- Payments for Goods and Services in Merchants and Web Portals (C2B).

- Marketing aimed to the personal style of each customer, using the shopping’s historical records.

- Using ATMs as CASH in and CASH Out Points as Merchants too.

- And many more ideas to propose, to marketing’s teams in financial institutions, building new products, services and offerings.

From our perspective in LATAM the best players to be successful are Issuers of a Mobile Wallet are the Acquirers Companies, Like Cielo, Getnet and  Redecard in Brazil, Prosa in Mexico, Redeban in Colombia, Transbank in Chile and others strong players like Western Union and Money Gram, the big Players in Remittances worldwide today.

Why acquirers ?

They have the ecosystem running today.

- Have the connections and make authorizations for transactions of Brands like VISA, Master AMEX, Dinners, etc.

- Have the connections with Banks and ATMs networks to route or authorize transactions from ATMs or using Debit Cards in a Merchant.

- Have the Merchant networks, key piece in the ecosystem to be successful.

- Usually are property of a group of Local Banks Entities, and give services for them.

- Just need to break the paradigm of B2B.

- They can see the Mobile Channel like that, just a Channel to transform all mobiles in POS self services to do Payments, Transfers, and other Financial transactions.

Look one of the worse cases in LATAM, Brazil has only 9% of Smartphones, but 9% of 262 M of mobile phones is 23.5 M of persons, it is a big piece of cake to work.

We can do the same calculation for Chile or Colombia with 60% of banked population.

They can try with low levels of investment using the Cloud to pay per use to providers of mCommerce in Saas way.

Take a look.

-          http://www.youtube.com/watch?v=gVkBUT0gEsU  (1.30 mins)

-          http://www.youtube.com/watch?v=V7q1jx8mYi8&playnext=1&list=PLCA962A5D0E16F3E7&feature=results_main  (3 mins)

Briefing we think that the successful of a Mobile Wallet is directly proportional to the power to pay and to find that exists many places to use the mobile wallet, and is cooler, easier and safe than the actual media payments as credit cards or cash. Security a complete topic to develop in other note.