News

Study: Cash-based online and mobile payment services around the world

October 8, 2013

ATM operators around the world know that cash remains a significant consumer payment instrument. But as goods and services move online, consumers who use cash exclusively or almost exclusively will find themselves at a disadvantage.

A new report by Mercator Advisory Group, "Cash-Based Alternative Online and Mobile Payment Services Around the World," examines the state of international cash use, and profiles selected cash-based-alternative payments providers who are currently active online and in the mobile world.

In many countries, the prevalence of cash payments, the low percentage of consumers with bank accounts, and consumers' concerns about transmitting sensitive personal and financial details online have made digital payments highly problematic.

In response, companies have stepped up to provide cash-based alternative online and mobile payment solutions. These companies' services allow consumers to pay with cash for purchases they initiate online or on a mobile device.

"New technologies and services that reflect evolving consumer trends in mobile phone and Internet use have emerged in markets that still have a cash culture," said Tristan Hugo-Webb, associate director for the international advisory service at Mercator, and the primary author of the report.

"Today, these firms provide services that accept cash at agents, kiosks, or full-service bank branches to enable consumers to pay for goods and services without ever having to share sensitive personal and financial information, or even have a bank account. The latter is particularly significant in developing countries, where demand deposit account ownership rarely exceeds 50 percent," Hugo-Webb said.

Highlights of the report include:

• an overview of cash use trends in leading developed and developing countries;
• a look at the global increase in non-cash based transactions;
• an in-depth examination of key factors in the popularity of cash-based alternative online and mobile service providers;
• profiles of selected providers of cash-based alternative online and mobile payment services in markets around the world.

One of eight exhibits in the 25-page report:

Read more about trends and statistics.