Global Mobile Operators: Strategies in Payments and Banking is a report and interactive PartnerBASE dataset that provides a detailed worldwide overview of the fast-growing involvement of mobile operator brands and groups across payment and banking services. For 255 brands spread across 70 countries, it outlines their activity and strategic partnerships for the following payment and banking product and service categories:

- payments: contactless merchant payments; payments via bank card / account; payments via mobile phone bill; payments via network account; talktime / call credit transfer;

- banking: mobile banking (bank current accounts); credit cards (non-virtual); prepaid cards (non-virtual); consumer finance / micro-credits.

Across all 255 brands researched, Finaccord identified a total of over 500 distinct product initiatives and partnerships involving close to 300 banking institutions, payment companies and technology firms including well-known organisations such as American Express, China UnionPay, Citibank, Gemalto, Google, MasterCard, Monitise, PayPal, Visa and Western Union.

Moreover, within a separate analysis, Finaccord summarises the main strategic moves made in financial services as a whole, including insurance and assistance as well as payments and banking, by the leading 65 mobile telecoms groups worldwide.

Key findings from the executive summary of this report include the following:

- 51 of the 65 major telecoms groups researched by Finaccord were found to have one or more strategic initiatives in mobile payments, with a further eight groups reporting that they had concrete plans for the introduction of group ventures in mobile payments in the near future;

- globally, only 13.7% of the 255 brands researched have a scheme for contactless mobile payments, although this figure is significantly higher in North America, where 30.8% of brands offer this option;

- the ability to make cross-border payments and transfers is most common in respect of talktime / call credit transfer schemes, of which 32.1% reported having international functionality – this is especially common in the Middle East, where brands in wealthy labour-importing countries commonly facilitate transfers to friends and family in poorer, labour-supplying territories

- with regards to conventional banking products, co-branded credit cards and prepaid cards are available in conjunction with 23.5% and 8.6% of all brands respectively.

Table Of Contents


Table of Contents

Executive Summary
Group Strategy Analysis
Brand Analysis
Brand Profiles
LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

Finaccord's research covers 65 major mobile telecoms groups and 255 country-specific operator brands
At a strategic level, leading telecoms groups are most active in the field of mobile payments
Asia and the US are the two current heartlands for the provision of contactless payment schemes
Mobile wallets (such as the M-PESA platform) are typically administered on a captive or internal basis
There is ample scope for more mobile payment services to develop an international functionality
Co-branded credit card programs are more widespread than their prepaid equivalents
Mobile telecoms groups and brands are likely to up their game in financial services for several reasons
The current worldwide structure of mobile financial services is both complex and fragmented
In future, leading mobile telecoms groups are likely to work with a smaller number of large providers

1.0 INTRODUCTION


What is this report about?
This study is the first ever worldwide analysis of the mobile operators' activity in payments and banking...
... covering over 500 distinct product initiatives and deals with close to 300 partner organisations
Rationale
Mobile operators can be key affinity distribution partners in payments and banking
Methodology
Primary research
The research covers 65 mobile operator groups and 255 brands across 70 territories
External sources
Definitions
Payment and banking services
Other terms
Operating models
Unweighted and weighted share of partnerships
Interactive PartnerBASEâ„¢
Finaccord

2.0 GROUP STRATEGY ANALYSIS

Introduction
Summary of groups researched
By total number of subscribers, China Mobile is by far the largest of the 65 groups investigated
The global market for mobile payments
The worldwide market for mobile payments increased by almost 600% between 2008 and 2012...
…with continued strong growth predicted through the first half of the current decade
Group strategic approaches to mobile financial services
The majority of leading telecoms groups have active or planned strategic initiatives for mobile payments...
... although some groups, such as Telenor, seem to devolve strategy to national mobile operator brands
In the developing world, mobile payments have become a feature of daily life for many consumers
The 'low-tech' model will continue to be relevant…
…while 'high-tech' options have yet to live up to perennial expectations …
…and security protocols remain crucial considerations
Many groups use multiple forms of mobile payment, from simple to cutting edge technology
Talktime or call credit transfer remains the simplest means of transferring funds worldwide
Telecoms groups are less likely to enter into tied agreements for mobile banking than for mobile payments
Many mobile telecoms groups offer no unique network-linked mobile banking
Provision of insurance and assistance policies has tended not to be organised on a centralised basis...
... although KDDI's au Insurance is an interesting (and unique) example of an insurance joint venture
Group ownership and partnership strategies in mobile financial services
The creation of captive and joint venture companies is an option for mobile telecoms groups...
... with outright or partial ownership almost inevitably the outcome of centralised decisions
Captives in payments, banking, insurance and assistance
Seven major telecoms groups own captive or joint venture payment or banking entities...
... with a further seven utilising captive (or sister) insurance or assistance providers
Joint ventures in payments, banking, insurance and assistance
At least two dozen formal joint ventures have been created, most focusing on mobile payments
Some, such as Isis, have been configured among two or more mobile telecoms groups...
... while others, like Wanda, involve a mobile telecoms group and a partner from a different sector
A three-way mobile payments joint venture in the UK has been blocked by the Competition Commission
In the shape of Jibun Bank, Japan's KDDI is co-owner of a joint venture retail bank
Strategic partnerships with payment and payment-related technology companies
Leading mobile telecoms groups are forging strategic partnerships with external payment companies
Among the most eye-catching of these are those of Google with Sprint Nextel in the US...
... and those of Western Union with various telecoms groups across a range of territories...
... although a number of other significant examples are also visible elsewhere
Payment companies may complement or substitute for traditional banks, depending on the region
It is intended that the partnership of Visa with Vodafone will cover payments in up to 30 countries
Gemalto is used as a strategic partner by several groups and on a local level by numerous brands…
…while several other technology companies provide support for mobile payments, especially via NFC
Leading groups in South Korea have by necessity forged multiple partnerships
A range of other international organisations offer serious payments competition to telecoms groups
Strategic partnerships with banks
Citibank works as a strategic partner with both Polkomtel and Sprint Nextel
Globacom collaborates for mobile payments with several banks in West Africa
As evidenced by Turkcell's partnerships, mobile payments are already well-established in Turkey
In Brazil, mobile telecoms group Oi has forged a wide-ranging alliance with Banco de Brasil and Cielo
Strategic partnerships with insurance and assistance companies
Telefónica and Vodafone have both established strategic partnerships in this arena...
... and specialist consultancy EIP works with both, most especially within Europe
In future, it is likely that major telecoms groups will seek to offer more products with fewer providers

3.0 BRAND ANALYSIS

Introduction
Summary of brands researched
Provision of payment and banking products
Provision rates
Globally, the most common type of payment product is the talktime / call credit transfer scheme…
…and nearly one quarter of brands have developed a co-branded credit card product
Contactless merchant payments: this functionality is absent from two of the seven world regions
Payments via bank card / account: several large Eastern European brands are active in this area
Payments via phone bill: offered by nearly a third of operators in Southern and Western Europe
Payments via network account: a key driver of financial inclusion and international remittances
Talktime / call credit transfer: more than 60% of the 255 brands researched offer this functionality
Mobile banking (bank current accounts): several of the largest schemes are located in India
Credit card (non-virtual): widespread across Latin America, but absent from Canada and the US
Prepaid card (non-virtual): Canada and Russia exhibit high provision rates for this product
Consumer finance / micro-credits: available from nearly a quarter of brands in Latin America
Miscellaneous payments / banking: other schemes exist for mobile stock trading and mortgages
International functionality
Such capability is most prevalent within large telecoms groups, and also in the Middle East…
…although the international compatibility of NFC standards remains in its infancy
Hardware and software limitations
NFC restrictions can sometimes be avoided by using special SIM cards or external stickers
In India, users with CDMA connections often cannot access the full range of mobile payment options
Talktime / call credit transfer schemes emerge as the least restricted type of product
Operating models
More than half of the initiatives for payments linked to mobile phone bills are run on an internal basis
The vast majority of co-branded payment card schemes involve a single card issuer…
…although some brands operate captive or joint venture banks for this purpose
Competitor share of partnerships
Contactless merchant payments: the most significant partnerships are forged in China and the US
Payments via bank card / account: Indian specialist mChek is the leading provider in this field
Payments via phone bill: the top three providers hold a weighted share of partnerships of over 50%
Payments via network account: multinational platforms include Airtel Money and M-PESA
Talktime / call credit transfer: Belgian operators mix internal provision with an external partner
Mobile banking (bank current accounts): some brand retail outlets even act as service points for banks
Credit card (non-virtual): Itaú is the most common issuing partner for co-branded credit cards
Prepaid card (non-virtual): the three Canadian mobile operators all partner with the same bank
Consumer finance / micro-credits: a number of mobile brands make use of captive lenders
Miscellaneous payments / banking: Vodafone subsidiaries distribute mortgages for two banks
Future products and planned schemes
Several new ventures are due such as Wanda, an initiative for mobile financial solutions in Latin America

4.0 BRAND PROFILES

Using the interactive PartnerBASE file
Brands covered by the research


LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY
1.0 INTRODUCTION
2.0 GROUP STRATEGY ANALYSIS
Total value and users of mobile payments worldwide, 2008 to 2012
Total value and users of mobile payments worldwide, 2012 to 2016 (forecast) 1
Summary of strategic initiatives in mobile payments of leading mobile telecoms groups, 2012
Summary of strategic initiatives in mobile payments of leading mobile telecoms groups, 2012 (cont.)
Summary of strategic initiatives in mobile banking of leading mobile telecoms groups, 2012
Summary of strategic initiatives in mobile banking of leading mobile telecoms groups, 2012 (cont.)
Summary of strategic initiatives in insurance and assistance of leading mobile telecoms groups, 2012
Captive payment, banking, insurance and assistance entities owned by leading mobile telecoms groups, 2012
Joint venture payment, banking, insurance and assistance entities co-owned by leading mobile telecoms groups, 2012
Strategic partnerships formed by leading mobile telecoms groups with external payment and payment-related technology companies, 2012
Strategic partnerships formed by leading mobile telecoms groups with external banks, 2012
Strategic partnerships formed by leading mobile telecoms groups with external insurance and assistance companies, 2012
3.0 BRAND ANALYSIS
Number of mobile operator brands covered by the research, segmented by geographical region, 2012
Multinational telecoms groups with five or more wholly- or partially-owned subsidiary brands covered by the research, 2012
Provision rates for each type of payment and banking product by mobile operator brands, 2012
Provision rates for contactless merchant payments by mobile operator brands, segmented by geographical region, 2012
Provision rates for payments via bank card / account by mobile operator brands, segmented by geographical region, 2012
Provision rates for payments via phone bill by mobile operator brands, segmented by geographical region, 2012
Provision rates for payments via network account by mobile operator brands, segmented by geographical region, 2012
Provision rates for talktime / call credit transfer by mobile operator brands, segmented by geographical region, 2012
Provision rates for mobile banking by mobile operator brands, segmented by geographical region, 2012
Provision rates for credit cards (non-virtual) by mobile operator brands, segmented by geographical region, 2012
Provision rates for prepaid cards (non-virtual) by mobile operator brands, segmented by geographical region, 2012
Provision rates for consumer finance / micro-credits by mobile operator brands, segmented by geographical region, 2012
Provision rates for miscellaneous payments / banking products by mobile operator brands, segmented by geographical region, 2012
Proportion of mobile payment products offering international versus purely domestic functionality, segmented by type of product, 2012
Proportion of mobile payment products offering international versus purely domestic functionality, segmented by type of product, 2012 (table)
Operating models used by mobile operator brands for each type of payment and banking product, 2012
Operating models used by mobile operator brands for each type of payment and banking product, 2012 (table)
Weighted competitor share of regular partnerships with mobile brands for contactless merchant payments, 2012
Weighted competitor share of payment network partnerships with mobile brands for contactless merchant payments, 2012
Weighted competitor share of regular partnerships with mobile brands for payments via bank card / account, 2012
Weighted competitor share of payment network partnerships with mobile brands for payments via bank card / account, 2012
Weighted competitor share of regular partnerships with mobile brands for payments via phone bill, 2012
Weighted competitor share of payment network partnerships with mobile brands for payments via phone bill, 2012
Weighted competitor share of regular partnerships with mobile brands for payments via network account, 2012
Weighted competitor share of payment network partnerships with mobile brands for payments via network account, 2012
Weighted competitor share of partnerships with mobile brands for talktime / call credit transfer schemes, 2012
Weighted competitor share of partnerships with mobile brands for mobile banking schemes, 2012
Weighted competitor share of regular partnerships with mobile brands for credit cards (non-virtual), 2012
Weighted competitor share of payment network partnerships with mobile brands for credit cards (non-virtual), 2012
Weighted competitor share of regular partnerships with mobile brands for prepaid cards (non-virtual), 2012
Weighted competitor share of payment network partnerships with mobile brands for prepaid cards (non-virtual), 2012
Weighted competitor share of partnerships with mobile brands for consumer finance / micro-credits, 2012
Weighted competitor share of partnerships with mobile brands for miscellaneous payments / banking products, 2012
4.0 BRAND PROFILES
Screenshot of the interactive brand profile viewer included with this report's PartnerBASE dataset

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