Asia has become the leading force in smartphone ownership
Asia has become the world’s leading market in terms of smartphone ownership, with more consumers choosing to purchase these mobile devices every day. The various economies of the region have been able to outperform other markets, especially in the mobile space and several other sectors. Mobile operators in this region could now have the opportunity to connect with new consumers and disrupt the payments space in a way they were never able to before.
Mobile operators are showing stronger interest in mobile payments and shopping
A growing mobile population has created high demand for mobile commerce services. These services allow consumers to use their mobile devices to shop for and purchase products online and in physical stores. In the past, technology companies and banks had focused on this sector, offering services that were in high demand among consumers. Now, telecommunications companies are beginning to enter into the payment space, with mobile operators leveraging their connection to consumers to establish a foothold in the mobile payments market.
More Chinese consumers are beginning to connect payment cards with their devices
Currently, China, India, and Indonesia are considered markets where smartphone ownership is growing aggressively. Consumers in these countries are also using these devices to pay for products they are interested in. In China, 16% of consumers have credit cards, with 49% having debit cards. These consumers are connecting these cards to their mobile devices, which is enabling them with the ability to pay for products online and in physical stores in a convenient manner.
Mobile operators have the potential to disrupt the payments space
In the coming years, telecommunications companies are likely to play a larger role in the mobile commerce market. These companies have been feeling pressure to provide consumers with services that make mobile payments possible and some have managed to find success in this regard. These companies will compete with other organizations in the mobile commerce market, however, which has become somewhat bloated due to the lucrative nature of mobile payments services.
China’s mobile commerce space is already intensely competitive. The space is occupied by Alibaba, which is one of China’s largest e-commerce groups. The company currently holds a 70% market share in China’s mobile payments market. Tencent, another major Internet company in the country, holds a 19% market share in this market. Other companies are coming to China to find success in the growing mobile commerce market, but they may find very limited success due to the strong competition that exists within this space.