MASTERCARD Mobile Payments Readiness Index (MPRI), an analysis of 34 countries, has identified the importance of industry partnership in the quest to make visible the benefits of mobile payments in the country.Besides, the MPRI found that while no two markets are the same, consumer readiness is the critical success factor to drive mobile payments' adoption around the globe.The survey stated that Nigeria scored 31.3 on the MPRI, with the global average being calculated at 33.2, while Singapore, which scored highest on the index, achieved a rating of 45.0.According to the Country Manager, West Africa, MasterCard Worldwide, Omokehinde Ojomuyide, 'It is early days for mobile payments globally. Even the most advanced country in the survey did not achieve 50 points, and the spread of the 34 countries surveyed is only 22 points.''There are nearly100 million active SIM cards in Nigeria,' added Ojomuyide.'Although currently only five per cent of these are smart phones that can access the Internet, a sub-$50 smart phone is expected in African markets in the next three years. The high penetration of mobile usage already in the market shows that Nigerians are accustomed to communicating via their mobile devices, and the step to mobile payments will be a natural one, once these devices are more accessible.'The MPRI identified Singapore, Canada, the United States, Kenya and South Korea as the most prepared markets. The Index indicates that while it's early stages for mobile payments adoption, all markets globally ' either highly scaled and integrated ones like the United Kingdom or compact and technology-driven ones like Singapore ' are making progress towards reaching an inflection point where mobile devices account for an appreciable share of the payments mix.According to him, a move towards mobile payments is in line with the Nigerian government's Cash Policy, which actively encourages Nigerians to reduce the amount of cash circulating in the local economy.'MasterCard's vision is a world beyond cash,' says Ojomuyide. 'By moving to non-cash payment mechanisms such as those offered on mobile phones, Nigerian banks, businesses and consumers will avoid the costs, risks and inefficiencies associated with carrying and handling cash. The MPRI shows that Nigerians are realising the benefits of mobile payments, although there is still much potential for growth in this field.'The Index also found that in some markets, young affluent consumers between the ages of 18 and 34 years old are the most willing to engage in mobile payments as they recognize the value of using mobile payments instead of cash or payment cards.In addition, findings of the MPRI revealed that partnerships among the key players in the mobile payments ecosystem are essential to accelerate the commercialisation of mobile payments. Cooperation and collaboration among financial institutions, telecommunications operators, governments, technology providers and others can foster an environment that enables a market to reach critical mass.The study also showed that of the three mobile payment types, more consumers had engaged in m-commerce in 71 per cent of the countries surveyed, adding that in developing economies, consumers are typically drawn to mobile payments for access to the larger economy, both national and global, as well as to a regulated and secure economic infrastructure. Consumers in the developed world are drawn to the convenience of mobile phone payments.
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