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Thought Leaders Corner Taking the pulse of mobile payments in 2017 by Oren Levy Untapped potential: Mobile payments in the US The fintech industry has been abuzz about mobile payments for at least a decade, but in 2017 mobile wallets are still struggling to gain real traction in the US market. Significant strides have been made, with the introduction of Apple Pay, Android Pay, and Samsung Pay, among others, and “eMarketer estimates US mobile payment transactions will total $62.49 billion this year, up 125.8% from 2016.” The potential for market saturation is certainly there, with the number of exclusively mobile web surfers rising every year: eMarketer reports that 40.7 million mobile-only users (as opposed to other channels like laptops and computers) are expected in 2017, and the figure will likely rise “reaching 52.3 million [by] 2021.” Today’s typical mobile user is inseparable from his or her cellphone. Mobile devices follower their owners anywhere and everywhere, nevertheless, mobile wallet adoption in many Western countries has been sluggish at best – confounding fintech experts. Who is adopting mobile payments While mobile payments adoption has been lackluster in many Western countries, their popularity has exploded in Asia, Africa and Europe, with hundreds of mobile wallet systems in use. The use of mobile phones for payments in emerging countries is booming. Below we will examine the different mobile payment methods in various developing countries and the reasons for their popularity: Africa The largest and most widespread mobile payment service in Africa is M-Pesa, a mobile phone-based money transfer, financing and micro-financing service. M-Pesa allows users to deposit, withdraw, transfer money and pay for goods and services. Few Africans have bank accounts or credit cards. Mobile money originally targeted rural customers making small personal payments, or cash withdrawals from kiosks. Today, mobile payment methods give millions of people access to the formal financial system. It is evident that this type of branchless banking is now being used as a separate payment channel strategy that forgoes bank branches. India According to Deloitte India, mobile and digital payments will overtake physical card payments as the predominant non-cash payment mode in India in 2017. India features various types of mobile payment services such as Paytm and Mobi Kwik. The reason for the proliferation of these providers is that while in Western countries, desktop PCs and laptops were the first webenabled devices, in India nearly 60 percent of users accessed the internet for the first time via their mobile phones. Indian consumers are ripe to conduct payments via their mobile phones. However, due to the fact that 2G bandwidth still prevails there, connectivity is often poor. While there are at least 13 million retail establishments spread out all over the 7