The United States and Latin America
The United States and Latin America have been far slower than countries in Africa and Europe in adopting mobile payments technology. Why is this the case?
This is the case because credit cards and banks in the United States are reliable and accessible everywhere. People also swipe their cards in a few seconds and therefore see no need to use their phones. There are various reasons, including the idea that they have online platforms such as PayPal, banks are well implemented, and most individuals own a bank account and, therefore, like the safe image of saving their money in these accounts. Banks in the United States also don’t like the idea of using mobile platforms and, therefore, slower in adopting mobile payment technology. In Africa, banks are not reliable and limited access to the bank. It is also believed that this service works on cheap phones, which are common in Africa. For example, the mobile money platform, known as M-Pesa, is used by a third of Kenyans.
Further economic liberalization in Africa depends, in part, on government leaders overcoming suspicions that foreign companies want to exploit Africa. How quickly is this likely to happen?
This can happen quickly, although these foreign companies will face challenges of complex procedures, inadequately skilled workers, lack of infrastructure, and difficulty in understanding the retail industry. It can also be delayed by corruption in Africa and the high price of importing goods. However, if foreign companies manage to deal with these issues, the exploitation of Africa can be quick since there is an opportunity for development.
If marketers think local and act local, what are some of the new products and services that are likely to emerge from Africa in the next few years?
Africa is full of resources as well as the young population that could transform the continent if marketers think local and act locally. Among the new products and services include mobile money transfer services and industrially processed products such as accessories. Africa also has raw materials that marketers can use as a competitive advantage. The continent is full of oil and metals that are essential for production.