May 01, 2012
Kuala Lumpur, 1 May 2012 – MasterCard Worldwide today unveiled the MasterCard Mobile Payments Readiness Index (MPRI), an analysis of 34 countries and their readiness to use three types of mobile payments: person to person, mobile web commerce and mobile contactless payments at the point of sale.
An average of 1,000 consumers from each of the 34 countries were surveyed regarding their familiarity with, willingness to use and current usage of each of the three types of mobile payments. The survey measured each market based on 6 components – Environment, Infrastructure, Regulation, Consumer Readiness, Financial Services and Mobile Commerce Clusters.
Malaysia attained an overall score of 34.3, excelling in the Regulation and Infrastructure components. The country saw a high score in the Mobile Commerce Clusters, reflecting some key collaboration currently in place. For instance, Nokia classic phones can be used at NFC-enabled merchant locations, including parking and transit. In addition, the survey reported that Malaysia’s regulatory framework is favorable for mobile payments because regulations are not burdensome for business, the legal environment is efficient, and communication and technology laws are well established.
In terms of consumer sentiment, while consumer readiness for mobile payments is not as high as other countries surveyed, consumers in Malaysia show some willingness to use their mobile devices for P2P payments and m-commerce. Seven percent of consumers report that they are currently using their mobile devices for m-commerce and six percent are making P2P payments on their mobile devices. The index identified high-income males between the ages of 18 and 34 years to be the group most familiar with and willing to use mobile payments.
“In Malaysia, the foundation is in place for mobile payments to take off. We are exploring opportunities with several Mobile Network Operators (MNO) to provide cardholders with advanced mobile payment solutions,” said Jim Cheah, vice president and senior country manager, Malaysia and Brunei, MasterCard Worldwide. “MasterCard is constantly looking for ways to encourage consumers to use their mobiles devices for purchases, be it online or at brick-and-mortar stores.”
In addition, findings of the MPRI reveal that partnerships among the key players in the mobile payments ecosystem are essential to accelerate the commercialization of mobile payments. Cooperation and collaboration among financial institutions, telcos, governments, technology providers and others can foster an environment that enables a market to reach critical mass.
Other key findings include:
- Nine of the 10 markets with the highest consumer scores are in APMEA (Asia/Pacific, Middle East and Africa).
- Of the three mobile payment types, more consumers had engaged in m-commerce in 71 percent of the countries surveyed.
- 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.
“Technology infrastructure, a responsive regulatory environment and a robust economy are table stakes for the advancement of mobile payments,” said Theodore Iacobuzio, vice president, Global Insights, MasterCard Worldwide. “The necessary conditions are consumer readiness and industry integration. As no one entity can develop and promote mobile payments by itself, key players in the ecosystem must work together to collectively advance the cause of mobile payments.”
To download an executive summary of the MasterCard Mobile Payments Readiness Index, view an Interactive Global Map of the data or study the findings of the 34 countries that make up the Index, please visit http://mobilereadiness.mastercard.com.
Research findings from the MasterCard Mobile Payments Readiness Index were compiled by MasterCard Global Insights between October 2011 and February 2012. The Index examined 34 global markets. Each market was ranked on a scale of 1 to 100 with scores derived from an algorithm comprised of over 50 quantitative and qualitative inputs including economic, demographic, telecommunications and payments industry data as well as proprietary consumer research. These inputs were then weighted and combined into six components including Environment, Financial Services, Regulations, Infrastructure, Consumer Readiness and Clusters and Partnerships. The six components were combined, yielding a single readiness score for each country.
MasterCard (NYSE: MA), www.mastercard.com, is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Cashless Conversations Blog and subscribe for the latest news.