Ever since the advent of mobile money technologies, the competition between mobile money aggregators and credit card networks such as Visa Card and Mastercard has been rather stiff. With both services providing convenience, security and speed, a number of people are divided over the choice of network. Visa and Mastercard, therefore, remain among the most popular payment methods available worldwide. While mobile money aggregators have managed to maintain success in the industry, there are a number of things they can learn from the evolution of Visa Card and Mastercard networks to not only enhance the user experience but also widen their market share.
Both Visa and Mastercard started as domestic companies that offered financial services to US residents only. After some time in the industry however, they ventured into the international market and have been very successful in terms of international revenue accrued. Visa accounts for about 50 percent of the total market share, whereas Mastercard holds approximately 30 percent share of the card industry. Today both, Visa and Mastercard, operate in more than 200 countries across the planet and have users from all over the world. The expansion of Visa and Mastercard networks to international markets has not only contributed to the market share of the two companies but to the convenience of users as well.
This is one of the things that Mobile Money aggregators can learn from Visa and Mastercard networks to aid in their growth and quality/variety of service delivery. As it stands, a majority of the mobile money services are available only in areas covered by the cell operators. There are larger mobile money service providers that cover regions but, there are hardly international mobile money services. This tends to limit the users’ access to their finances and inhibits remittance. To enhance user experience, boost flexibility and also promote growth of the mobile money companies, aggregators need to expand into the international markets.
Multiple Currency Clearing
One of the features that make Visa and Mastercard networks an ideal option for international transfers is the availability of multiple-currency clearance. The availability of these services allows users to send and receive money without having to worry about currency exchange. Mobile money aggregators can learn from the Visa and Mastercard networks and offer users multiple currency clearing. This will save users the trouble of having to seek financial exchange services before sending money or after receiving money. Multiple currency clearing also streamlines mobile money payments.
Integration with Banks
The use of debit and credit cards is beneficial in a number of ways, one of them being that it boosts cash flow. With the transactions directly connected to bank accounts, users do not have to visit the bank to make withdrawals or deposits. For smooth operations, it would be ideal for mobile money aggregators to implement direct integration between mobile money accounts and the users’ bank accounts. By doing this, they will be enabling them to deposit into or withdraw from their bank accounts without taking the trip to the bank.
Mobile money services have the potential of becoming the primary mode of payment and money transfers. Learning from Visa and Mastercard networks can be a huge step towards realizing this potential.
About TerraPay: TerraPay is the world’s first mobile payments switch – a B2B transaction processing, clearing and settlement service for mobile wallets. Our best-in-class technology serves as the interoperability engine that enables our partners’ customers to send and receive real-time transactions across diverse payment instruments, platforms and regions.