The biggest revenue growth for carriers in 2016 will be from payment services providers. Carriers who expand into this segment will work together with Visa, PayPal and PayTM.
Many payment platforms and wallets have reached a plateau in their existing bank-based payments business in Western markets. A majority of users who want to pay online with a bank card are already doing so. But in emerging markets their growth is stalling.
In the fastest growing smartphone markets, online banking infrastructure almost does not exist. For example, in India the smartphone market grew by 21.4% compared to last year while just 4.2% of the country’s population owns credit cards. This creates a growing gap between users who have access to online content but are unable to pay for it: an opportunity which so far has been untapped by financial service providers.