Smartphones & Mobile Money: The Next Generation of Digital Financial Inclusion

This paper discusses the factors at play in smartphone adoption and their significance to the evolution of mobile money. It states that as more unbanked consumers gain access to smartphones and mobile internet services, new opportunities for mobile financial services models will emerge. The paper covers the following topics:

• Rise of smartphones in emerging markets: The paper estimates that smartphone penetration as a percentage of population is expected to rise from 19% in 2012 to 32% in 2017. In Sub-Saharan Africa it is expected to grow five-fold from 4% to 20% and in Latin America it is likely to rise from 20% to 44% in the same time period;
• Implications of smartphones for financial inclusion: This section includes discussion on enhanced user experiences for mobile money, new product development linked to mobile money accounts, and possible competition;
• Scenarios for smartphone-based mobile money and the road ahead: This section discusses the possible challenges relating to mobile data accessibility and lack of availability of local content.