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TheMobileBuzz
Emerging markets fuel smart-device surge
HS Markit researchers predict the global user
base for smartphones will rise to 6 billion by 2020,
up from 4 billion in 2016. Smartphone and tablet
I devices now comprise more than 60 percent of the
smart-connected consumer device market, up from just 17
percent in 2008, IHS noted.
Several developments will likely drive mobile adoption.
"Mobile innovations, new business models and mobile
technologies are transforming every adjacent market
as the mobile industry diversifies from the maturing
smartphone market," said Ian Fogg, Director at IHS
Technology. "Revenues for smartphones shipped in 2020
will total $355 billion."
IHS projected global consumer spending via mobile apps
will reach $74 billion by 2020, up from $54 billion in 2016,
driven by accelerated spending in such regions as Africa
and the Middle East, each expected to grow at an annual
rate of 18 percent through 2020.
"Latin America will see an average growth rate of 23
percent compared with the global 8 percent average
annual rate," said Jack Kent, Director, Operations and
Mobile Media at IHS Technology. "Africa, the Middle East
and Latin America will be the fastest-growing regions
in the next four years. There are many opportunities for
new apps, mobile payments and mobile money services."
He added that Asia will continue to dominate the global
apps market, accounting for over 50 percent of consumers'
spending.
Emerging market potential
According to IHS, more than 120 million active mobile
money accounts were active in emerging markets in
2016. And looking ahead, the number of smartphones
connected to device-based payments will nearly double,
from 2.7 billion in 2016 to over 5 billion by 2020.
"Mobile payments and commerce are central to mobile
innovation and will be critical for future growth," Kent
said. "Mobile money services have been a vital tool for
financial inclusion in emerging markets, but elsewhere,
mobile money services are looking to complement or
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disrupt traditional payments and financial services
through the launch of app-only banking services, device-
based payments from services such as Apple Pay, Android
Pay and Samsung Pay, and payment integration via social
media and messaging apps."
Kent believes leading technology players will focus more
attention on integrating payments and commerce within
broader mobile platform and technology applications.
"This integration across their range of devices, apps,
content and services will be crucial if they want to tap
into the next waves of growth," he said.
Fogg added, "Smart mobile devices will rapidly become
universally adopted throughout the world, enabling
innovative smart services, which will transform emerging
economies. Mobile devices and services are now the hub
for people's entertainment and business lives, as well as
for communication. The smartphone has replaced the PC
as the most important smart connected device."
Wearable mobile movement
Just as smartphones make their mark on consumerism
in vast numbers globally, wearable devices are carving
niches as well. The latest entrant is Singapore-based
EZ-Link Pte Ltd., whose core focus until now has been
Contactless ePurse Application (CEPAS)-compliant EZ-
Link cards for transit riders at 30,000 transit locations.
(CEPAS is the Singapore specification for electronic smart
cards.)
Catering to the entertainment and health aspects of
mobile technology, the EZ-Link Wearables product line,
launched in January 2017, combines payment functions
with lifestyle options such as fitness. For example, the
Garmin vivosmart HR with EZ-Link device provides
a fitness tracker and ability to pay for transit rides. The
company recently teamed with Watchdata Technologies
Pte Ltd. to launch the Batman v Superman Fitness X EZ-
Link, which performs similar functions for fans of the
movie franchise.
"Our vision for EZ-Link Wearables is to give our users new
possibilities and freedom, by blending an essential part
of their daily journeys – EZ-Link with different aspects
of their lives," said Nicholas Lee, Chief Executive Officer
at EZ-Link. "Last year we integrated a similar contactless
chip into the vivosmart HR band in Taiwan, which lets
users pay for train rides, bus trips and retail purchases via
the i-Pass electronic wallet stored within the chip."
With mobile devices becoming more accessible in
emerging markets, optimism abounds at companies like
EZ-Link, which aspire to bridging all segments of transit
through mobile devices, whether people are traveling by
bus, train, plane or simply on foot.