One industry on track to experience high growth insync with the economic trend of emerging markets is mobile payments. Specifically the kind that attach to smartphones- Mobile Card Readers (or MCRs). According to Technavio Research, the MCR market will grow 54% from 2017 to 2021, largely supported by growing economies in LATAM, Southeast Asia, and Africa.
The rise of the middle class and consumption levels and the small businesses to support them will mean billions of transactions for MCR’s to take advantage of if they can succeed in acquiring emerging market customers. According to McKinsey Global Institute, 60% of new urban consumers will be in Emerging Markets by 2025 and their discretionary spend will rise by $10 Trillion. Today there are about 350 million SMBs in emerging markets and that number is forecasted to dramatically increase as the middle class expands.
MCR’s are the perfect payment solution for SMBs. They’ve taken off in the US. I’m sure many of you have processed your own payment at a local vendor using one. They are easy to use, minimize banking procedures, require little to no upfront capital investment, and can be taken outside the store front to anywhere the business promotes or offers services. They are especially valuable in cities with lots of tourists who don’t always carry local currency.
One of the big challenges for MDRs selling to emerging market SMBs is simply finding potential customers. Many SMBs in emerging markets today are offline or cash-based businesses who are unaware off the benefits of using an MCR.
The market is still in it’s early stages but there are several vendors who are in the running to take a foothold in local markets. Increasing competition in the vendor space and low switching costs mean that vendors who want to succeed should take the first-mover approach like PayPal has in Japan. Being first to market will increase your brand authority and become sticky with a local community.
One way to overcome this challenge is through collecting high quality SMB data on underserved markets. dataPlor helps companies who are looking to expand in emerging market do it successfully through data collection, cleansing and market research. Our method combines mobile-first technology and an on-demand local workforce who act as your “feet on the street” in emerging markets. Leveraging our human network we can deliver premium SMB data based on specific requirements and attributions, making your sales efforts targeted and effective. Our network is capable of verifying and collecting SMB records at up to 1,000 a day in one city.
Access to up to date, multi-verified data can significantly increase success rates in reaching new customers in emerging markets. For MCR’s in particular, a mobile workforce can be the key to ensuring you reach your potential customers first.