With over half the world’s adult population being unbanked or without an account at a bank or a financial institution, the need for an alternative payment method is globally voluminous. With that being said, the technological advances and development of telecommunication and mobile applications, makes mobile payments a viable and an attractive payment solution to global consumers and businesses.
According to the Financial Access Initiative report; Half the World is Unbanked, 2.5 billion adults worldwide do not use formal financial services. 2.2 billion of the unserved adults live in Africa, Asia, Latin America, and the Middle East and around 9 million live in the United States. Whilst, the global unbanked population live both, in countries with an established financial payment infrastructure and countries with a limited financial infrastructure, 5.3 billion people globally have mobile phones.
With over 70% of the world’s population being mobile subscribers, the bill to mobile solution holds the key to the future of online payments. Not only is online mobile payments, a convenient purchase method but unlike mobile banking transactions, it does not exclude the unbanked population. With the purchase taken off the customer’s mobile phone balance, this method would potentially suit the payment needs of the unbanked mobile subscriber population.
Online mobile payments utilize the advantages of mobile-commerce and have the capability of enhancing the lifestyle of billions, especially those living with an inadequate financial infrastructure. With the ever increasing use of mobile devices and advances in technology, online mobile payment is an efficient and convenient global solution to the current and future position of online payments.