MasterCard Ranks Global Preparedness to Adopt Mobile Payments
May 14, 2012
MasterCard recently released the results of research that determines in 34 different markets the readiness of those markets for mobile payments.
The Purchase, N.Y.-based card network has developed an algorithm that synthesizes six components—environment (economy and scale), infrastructure (telecommunications and technology), regulation, financial services, consumer readiness, and mobile commerce clusters (the degree of integration and partnering among banks, telcos, and the government)—into an index that enabled it to rank the markets in terms of which are most ready to adopt mobile payments right now.
The 34 markets covered by the Mobile Payments Readiness Index represent about 85 percent of the world’s household consumption expenditure. The index ranks Singapore as the most prepared to adopt mobile payments with Canada, the U.S., Kenya and South Korea rounding out the top five. The countries most unprepared to adopt mobile payments at this point in time are Mexico, Hungary, Italy, Indonesia and Argentina.
MasterCard says it believes a score of 60 on the index indicates a market has reached the point at which mobile devices account for “an appreciable share of the payments mix.” Singapore, the most advanced market in the index posted a score of 45.6.