Business consultancy project

Mobile Financial Service Stakeholders

The rising demand makes MFS industry attractive even for non-financial entities. The telecom market players, such as mobile network operators, smartphone manufacturers, and technology companies are considering the financial industry as “blue ocean strategy” (Kim & Mauborgne, 2005) and are enlarging their product portfolio by introducing the new substantial advantages in the mobile payment industry. Consequently, today Google, Apple, and other technical giants entered the financial market ocean and created a significant threat for traditional financial players. (Mobile Payment Industry Overview)

1. Mobile Network Operators.

Generally, MNO and financial market have nothing in common, and MNO can compete only with telecom industry players. However, mobile operators slowly are entering the mobile payment business. The first interference occurred in the emerging markets, where the traditional banking system penetration was very low, and consumers made mobile payments through mobile operators. The success story of some mobile operators in Africa region, for instance, Kenyan mobile operators` M-Pesa service inspired other mobile operators to use the mobile payment as a new revenue stream. After the productive launch of M-Pesa, the mobile operators in Africa and Asia region started to use Vodacom experience.
Moreover, mobile operators have all required consumer data, and some of them used their information in cooperation with banks for providing various payment solutions through mobile devices. For instance, in Y 2015, Telenor Pakistan re-registered all its active SIM cards. The company used this information in the utilization of the biometric data for providing mobile financial services to customers. After the successful results of the mobile payment in the emerging market, the mobile operators in the developed countries also started the implementation of the mobile payments systems. According to ACI Worldwide, telecom operators’ share in mobile payments in Europe could reach to €13.3 billion in 2022 from €3.4 billion in 2017. (The Mobile Payments Opportunities for Telcos, 2017). Eventually, the MFS service is getting high popularity across the world, and mobile operators are considering MFS as the new revenue stream in their portfolio. (Smith, Markendahl, & Andersson, 2010)

2.