3G, Driving Mobile Commerce Boom for Operators

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With the help of 3G networks, subscribers are today seriously looking at doing their banking related activities on the go.

Communications revolution in the form of 3G is taking mobile commerce to the next logical level. And as a result, Mobile commerce and banking and getting intertwined in today’s technology oriented scenario and pose a huge opportunities for operators in emerging markets including India.

Experts in the research community forecasts that there would be $12B in Mpayment revenue annually in Far East & China and $1B to $1.5B in the Indian sub continent and Eastern Europe by 2012.

And in order to reap benefits of this scenario, many operators are engaged in a broad range of mobile commerce activities, including mobile banking, P2P payments, M-Ticketing, POS payment, Mwallet, etc. These services not only provide new revenue streams but are also known to reduce churn by increasing switching costs.

One extremely successful M-banking category to date has been P2P payments. In a manner similar to Western Union, subscribers deposit money with authorized agents who then credit their phone with funds that can be sent to other users.

Like other banking services in emerging markets and countries, M-Banking has enjoyed great success for a variety of reasons. These include the fact that a large fraction of its population is without bank accounts, yet needs to send money to friends, relatives and business associates, often at substantial distance. This is where it creates big differentiation and becomes a big rallying point for market acceptance.

And m-banking is ideal for browser based services with broader payment and deliver banking capabilities which can leverage the higher speeds and lower latencies of 3G network being enabled by the operators. Moreover, operators who are trialing mobile couponing and AD embedded content like games and music look at gaining from 3G network’s lower cost of delivery and at the same point higher speeds at the end customer level.

Mobile Wallet is giving wind to.......

Payments to Smart Wallet Subscribers & participating merchants
Helping in terms of Recharging mobile account & send credits to other subscribers