Sub-Sahara ‘ready for next m-commerce step’

VALUE ADDED SERVICES

-
Image: By Ericsson
Sub-Sahara ‘ready for next m-commerce step’

In a new report from its ConsumerLab, Ericsson maps out the potential of transformation within m-commerce across the region of sub-Saharan Africa.

Based on in-depth, extensive interviews with mobile phone users in Ghana, South Africa, and Tanzania, the report has four key findings: that consumers are constantly looking for new ways to improve their personal budgets; the speed and convenience of m-commerce points to great potential in the market; current behaviors and social structures indicate that the use of mobile payment services will expand; and that consumers need more information about the functionality and security of m-commerce transactions.

Consumers tell Ericsson researchers that they use mobile payment services for person-to-person transfers and purchasing airtime on their mobile subscriptions, and that they like the convenience of accessing money everywhere and at anytime, regardless of service hours. In Tanzania, for example, 38% of subscribers send money person-to-person over the mobile phone.

Another conclusion of the report is that people who use m-commerce keep little separation between private and business accounts. "Many consumers are entirely self-employed and are prompted to make transfers from private accounts for business purposes, so they gain experience with m-commerce," says Anders Erlandsson, Senior Advisor, Ericsson ConsumerLab.

Experience leads to greater trust, and the report finds that 44% of non-users of m-commerce are very worried about the integrity of their account information in case of theft or loss of their phones. "Face-to-face introductions, when an agent meets consumer, are crucial," says Erlandsson. "Just as personal access to a bank leads to higher acceptance of more abstract bank services, trust in mobile services also grows with personal experiences, rather than merely through advertising."

The report gives some insight into how household finances are traditionally handled and guidance for telecom operators in launching services that consumers will like and use. Where men and women share a household, men are generally expected to be breadwinners and women responsible for household finances.

A 45-year old man in Tanzania says: "If we are out of money and we have to buy something, my wife will usually solve it somehow. I don't know how she does it, women always have their ways."

Users put a high value on easy access to their money, Erlandsson continues: "Network reliability is another important factor, where concerns have to be addressed. For example, if you lose connectivity, you cannot access your money.

"Operators are reliable and technologically adept, providing a service that is personal and available to everybody. There is a window of opportunity in mobile money services for operators who already have an established relationship with consumers, because they have wide presence also in rural areas," he concluded.

Ericsson ConsumerLab gains its knowledge through a global consumer research program based on interviews with 100,000 individuals each year, in more than 40 countries and 15 megacities - statistically representing the views of 1.1 billion people. Both quantitative and qualitative methods are used, and hundreds of hours are spent with consumers from different cultures.

Ericsson m-commerce has a global focus on accelerating access and interconnection between the m-commerce ecosystem and the existing financial world.



SULEIMAN - Oct. 24, 2012, 3:32 p.m.

This's wonderful!

Share the News

Get Daily Newsletter

comments powered by Disqus

MORE VALUE ADDED SERVICES NEWS

Mobile payments to rise 40% this year

A new report from Juniper Research has found that the value of global payments via mobile devices will reach around $507 billion this year, a rise of nearly 40% year-on-year. Read More

MTN, Bharti Airtel to launch international money transfer

MTN Group and Bharti Airtel have announced a cross-border remittance partnership for Ivory Coast and Burkina Faso.  Read More

Glo connects subscribers to millions of organisations through Directory Service

Millions of subscribers on the Glo Mobile network have been given a unique opportunity to access the addresses of millions of organisations in Nigeria as the leading telecommunication company has introduced the Glo Service Directory. Read More

Local search to push mobile search & discovery adspend to nearly $17bn by 2018

A new report from hi-tech analysts Juniper Research has revealed that by 2018, the total advertising spend on mobile search & discovery will reach $16.8 billion. Read More

Glo unveils games store for Nigerian mobile users

Globacom has introduced a unique Games Store for Nigerian mobile users, offering premium games for all types of mobile devices. Read More

130 million mobile video callers by 2018

While users of mobile video calling services such as Skype are forecast to increase to over 130 million users by 2018, question marks remain over the potential for mobile video calling to generate revenues, says a new report. Read More

MTN, Ecobank partner to improve access to mobile financial services

MTN Mobile Money users, who are also Ecobank customers in 12 African countries, will soon be able to withdraw cash from Ecobank ATMs.  Read More

Net1, Supa Pesa bring advance airtime to Malawi

SA-based Net1 Mobile Solutions and its long-time partner Supa Pesa, has expanded its Advance Airtime African footprint with the launch of TNM Airtime Credit service, Pasavute. Read More

10bn mobile contactless transactions by 2018

A new report from Juniper Research has found that the number of contactless transactions via mobile handsets will exceed 9.9 billion globally by 2018, up from just over 3 billion this year. Read More

Safaricom offers free Google

Safaricom now offers Google Free Zone, a new product  that allows Safaricom mobile users to access Google+, Gmail and Google Search without incurring data charges.  Read More

PRESS OFFICES

Sage ERP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN Business

FEATURED STORY

Kenyan shift to Green Economy would generate USD 45bn by 2030 Kenyan shift to Green Economy would generate USD 45bn by 2030

Kenya’s transition to a green economy could produce major economic benefits  equivalent to an estimated USD 45 billion by 2030, a new  study shows.

IN DEPTH

E-waste threatens Ghana’s beachesE-waste threatens Ghana’s beaches

Many beaches in Ghana, already stressed by pollution and poor maintenance, are now facing a new threat: e-waste.

COMPANY NEWS

Further African expansion for Phoenix

Phoenix Distribution, a leading broad-based distributor on the African continent, has expanded its office in Nairobi, Kenya, in a move to better serve its partners in East ...