According to "M-Payments in M-BRIC", mobile financial services are currently experiencing a global surge. While every second person owns a mobile device in M-BRIC countries, 70 per cent of their population is currently excluded from the banking sector.  As such, there is great potential for new entrants to actively shape the local m-payment market. However, different standards apply to each country within M-BRIC. Arthur D. Little outlines how players in each country must consider specific local requirements to succeed:

• Mexico – the best option for fast market entry, as regulations are already in place to facilitate entry of non-banks, enhancing the chances of MNOs and third party providers.
• Brazil – banks will take the lead and should identify the most valuable potential key accounts for bulk payments and money collection services.
• Russia – the country is well positioned to develop mobile bill and utility payments, and MNOs have the potential to strengthen their market position by focussing on B2C transactions in cooperation with banks and non-bank payment operators.
• India – m-payments will be bank-led, with banks offering this service to regions where ATMs and/or branches are not in reasonable distance. Over the next two years, players should focus their attention on top-ups and bill payments services.
• China – existing technology can be used to reach China’s rural areas both quickly and cheaply to provide a SMS-based m-payments system.

“In M-BRIC countries, there is a substantial base of people on a low income spread across vast distances who own mobile phones and require banking services,” comments Thomas Kuruvilla, Managing Director, Arthur D. Little Middle East. “By bringing these two factors together, service providers can meet the need for a more extensive payment distribution network, especially in rural areas.” To access the full report, please visit:

www.adl.com/M-Payments