After years of hype, the mobile commerce bandwagon may have just rolled into town. And if projections are anything to go by, the days of the traditional wallet might be numbered, writes MUSTAPHA ZAOUINI, CEO of PayU.
The global mobile wallet market is projected to grow at an annual compounded growth rate of 36.8% over the next four years, according to research by RNR Market Research.
Additionally, Statista predicts that the global mobile payment transaction volume is expected to reach US$721 billion in 2017, up from US$235 billion in 2013.
Paypal, the leading provider of wallet services, now has circa 162 million active wallets.
A further look at mobile money growth from around the world reveals the fruits of unprecedented user engagement and device proliferation.
A 2014 report by Hamburg based yStats.com revealed that in China, where more than 200 million people already use mobile payments, third-party mobile payments grew by 800% last year and are forecasted to more than double this year. Meanwhile, USA mobile payments are growing at three-digit percentage rates.
Banking apps in the U.K. were used 10.5 million times a day across the country in March, surpassing the 9.6 million daily log-ins to internet banking services, according to data from the British Bankers’ Association.
Impressive numbers, but will South Africans be as keen to replace their physical wallets?
In my view, current local market factors support mobile wallet adoption. The mobile phone user adoption curve is at a point where we have a sufficiently large group of consumers in SA who are comfortable with making payments online, as well as enough mobile devices to make the mobile wallet service viable. However, the value proposition must be relevant to both the consumer and merchant, both online and offline.
The high rate of mobile phone users in South Africa – approximately 59 million according to Wikipedia – suggests that user education is not a barrier. This is further supported by a 2015 World Wide Worx survey that found internet browsing via phones to be at 40% in South Africa.
Moreover, we have seen that payment infrastructure is improving and a sufficient density of wallet pay points has been reached thanks to incumbent Wallet initiatives acting as enablers of point of sale devices.
Homegrown wallet offerings like Snapscan, Zapper, Flickpay and eWallet are gaining momentum despite the backdrop of modest e-commerce growth.
FNB’s mobile wallet is an example of banks looking to ensure that they scale through low cost access channels to serve the under and un-banked customers with higher profitability. A key focus for wallet providers will be on the seven million people in South Africa who earn salaries but do not have their own bank accounts, according to Vodacom’s estimates.
I agree with FNB’s eWallet’s CEO Yolande Steyn’s sentiments that the success of eWallet has shown that there is still massive scope for mobile money remittances as an entry point for mobile money in a country. The challenge lies in creating further financial services adoption off the back of it.
Last month’s go-ahead for remittance exchanges between SA and Zimbabwe’s Econet by the SA Reserve Bank may be an omen for mobile money.
Yolande Steyn also maintains that using supplementary technologies such as self-service terminals, ATMs and other mobile applications can further augment the value proposition.
A 2015 Forrester report suggests that the future of mobile wallets may lie beyond payments. The research points to the fact that in the next five years mobile wallets will resemble marketing platforms.
A diversified offering will unlock value in a South African Market that is socially savvy and has an appetite for integrated services. It is an inevitable progression for large third-party players like Apple or PayPal to offer a suite of services through their wallets. In China, for example, the Alipay Wallet already lets brands reach consumers via mobile banner ads.
Thomas Husson, Principal Analyst at Forrester perhaps summed it up best in a recent mobile wallet report: “Offering faster or more-secure payments is not enough; wallet providers will have to solve real pain points, such as giving consumers the ability to see how much is on stored value cards at any moment in time, access loyalty points, or automatically receive digital copies of payment receipts.”
The Forrester Report highlights the top functionality that people interviewed want in a mobile wallet. Loyalty points and rewards ranked highest among US respondents (57%) and second for EU respondents (34%). Coupons discounts and special offers came in a close second for both groups (56% and 36% respectively).
Other items making the list were price comparisons, relevant product info, the ability to make reservations, split-billing, as well as digital tickets.
If the mobile wallet, in conjunction with cash and credit cards, can provide the means for all South Africans to access the digital world then the traditional alternative’s time may be up.
For me, it’s a question of when the wallet will cross the chasm, rather than if.
* Follow Gadget on Twitter on @GadgetZA
Naspers feeds into Latin America’s tech funding
Movile will get $400m funding from the SA-based technology investment giant for iFood expansion.
Movile is to receive US$500-million in funding for iFood in the largest tech funding in Latin America to date. Naspers and Innova Capital have committed to invest $400m of new capital into Movile to use for further investment in iFood, the leading online food delivery platform in Latin America, of which Movile is a majority shareholder.
Movile and Just Eat have already invested $100m in iFood during 2018. iFood’s extraordinary growth and the vast market opportunity in Brazil and more broadly in Latin America has driven the increased investment commitment.
iFood’s monthly orders in Brazil have fed more than 9 million customers in the past twelve months, 16 times the nearest online competitor, in terms of daily active users. This means its partner restaurants are serving the biggest population of consumers ordering food in Latin America. iFood has 50 000 restaurant partners and uses 120 000 couriers.
The increased investment commitment from Naspers, Innova and Movile is expected to accelerate growth, speed up product development and innovation, and fuel geographical expansion for iFood across the region. The company’s vision is to gain deeper knowledge of consumers through artificial intelligence technology, to personalise the food delivery experience – and at a reduced price, because of improved logistics.
“Movile is very fortunate to have long-term investors who have supported us for the past decade to help achieve our goal of transforming the lives of more than one billion people and thus we are able to continually back iFood to ensure it remains the market leader,” said Fabricio Bloisi, Movile CEO.
“Our entire ecosystem of companies is focused on allocating resources and energy towards our one billion people goal. iFood is leading the way, fueling unprecedented growth through its innovative technology platform, providing consumers, couriers and restaurants with the best experience in food ordering and delivery.”
Larry Illg, CEO of Naspers Ventures, said: “iFood has established itself as a technology leader in Latin America and its success stacks up with some of the most innovative food companies that are leading regions in North America, Europe and Asia. We have been impressed by their execution in Brazil and remain committed to backing the company on its path to transform the entire food chain to better serve consumers.”
Online food delivery is experiencing massive expansion globally. According to latest reported results, Grubhub grew daily average orders 39% year-on-year, reaching over 416 000 orders per day. In Latin America, iFood has reached 390 000 orders per day just in Brazil in the last week of October, compared with 183 000 in October 2017, representing 109% growth.
iFood CEO Carlos Moyses said: “We want our consumers to have an amazing delivery experience from the moment they order their food to the moment it arrives. Our partners – the restaurants and delivery fleet – make that happen by living our purpose of improving people’s lives using our services.
“iFood exists for our customers and, with an increased investment commitment of this size, we will be able to build out our state of the art technology platform, and increase our courier and restaurant partners to even better serve our current and future customers in Latin America.”
Hide your sheep, Spyro is reigniting
Spyro, the iconic purple dragon that entertained living rooms worldwide in the late ‘90s, is making a return with the release of Spyro Reignited Trilogy.
Spyro Reignited Trilogy introduces players to a fully remastered game collection with a re-imagined cast of characters, animations, environments, new lighting and recreated cinematics—all inHD. Now fans can explore more than 100 lush environments filled with new detail, that brings the Dragon Realms and Avalar to life . The trilogy is available for PlayStation 4, PlayStation 4 Pro and the family of Xbox One devices from Microsoft, including the Xbox One X.
South African distributors Megarom provided the followjng information:
In Spyro Reignited Trilogy, lead developer Toys For Bob is giving fans an all scaled-up version of the original three Spyro games that started it all, Spyro the Dragon, Spyro 2: Ripto’s Rage! and Spyro: Year of the Dragon, but with a modern-day feel that makes it fresh and fun for today’s player. Adding to the fun, voice actor Tom Kenny is returning to the franchise as the voice of Spyro in all three remastered games. Longtime fans will be treated to Toys For Bob’s reimagined version of the classic soundtracks, in addition to an all-new title-screen theme from original soundtrack composer Stewart Copeland.
Additionally, the new game brings an in-game audio feature that allows players to switch between the original and the newly remastered soundtracks, for those who want a more classic gameplay experience. Players can simply fly in to the “options menu” at any time during gameplay, unleash their preferred nostalgic or scaled-up groove, and glide right back into the Spyro action without losing saved data.
“It’s been a real pleasure to bring back one of most iconic video game characters of all time through the Spyro Reignited Trilogy,” said Paul Yan, Co-Studio Head at Toys For Bob. “We’ve poured everything we’ve got into making sure every detail was done right to deliver a great Spyro experience for fans. We hope players will have as much fun revisiting the Spyro world and characters as we did remastering them.”
In the road up to the official release of Spyro Reignited Trilogy, Activision Publishing, Inc., a wholly owned subsidiary of Activision Blizzard, created a first-of-its-kind, life-sized, fire-breathing and talking Spyro Dragon drone. The drone took off from “Stone Hill” castle near New York City, spreading his wings across the U.S. to explore the cities and iconic landscapes that resemble levels and themes from the original Spyro games. As part of the tour, the Spyro drone chased sheep, fired up some BBQ and delivered an early copy of Spyro Reignited Trilogy to fellow O.G. and entertainment icon, Snoop Dogg. Highlights from the Spyro drone’s delivery to Snoop Dogg can be found here.
“Fans have been asking Activision to bring Spyro back for some time now. The response to Spyro Reignited Trilogy has been great thus far, and we’re absolutely thrilled that we’re able to continue to reimagine and reinvigorate some of the most iconic videogames and characters of all time with our remastered experiences,” said Steve Young, Chief Revenue Officer at Activision. “With this year being the 20th anniversary of Spyro, there’s no better time to pay homage to everyone’s favorite purple dragon.”
The Spyro community is invited to geek out and elevate their fandom even further through the elite global partnerships from the Activision Blizzard Consumer Products Group (ABCPG). Collaborations with Funko, Traly Pins, Exquisite Gaming, KidRobot, USAopoly, Trends International, Rubber Road, and Changes have created new avenues for fans to share their love for the return of Spyro, the original roast master. Spyro consumer products across apparel, collectibles, figurines and more are now available at retailers worldwide. Fans can also take advantage of the GameStop exclusive Spyro TOTAKU Collection.