GATE annual report estimates 2.07 billion customers worldwide will use mobile wallet to make payments or send money in 2019. This is largely due to strong reliance on mobile phones. China is the largest adopter of mobile wallet payments leading with 56%, followed by India, Africa and the middle east.

Presently, World bank estimated 2 billion of the world’s population (excluding small companies) does not have access to bank accounts and two third of this population have mobile phones. This represents a customer acquisition opportunity for mobile wallet markets.

Some Mobile wallets like Apple Pay and Samsung Pay are device dependent while others like Google Pay cannot function without an internet.  However, a robust wallet has authentication and omnichannel capabilities (works offline and online). Like JETHRO’s Realmpay.

When Banks provide mobile wallet services to the unbanked it will result in their financial well-being and expansion of the economy. For instance, Accenture estimates 380 billion in annual revenue for banks and FIs from servicing the needs of the unbanked segments. 

Partnerships will accelerate Financial Inclusion. For instance:
+Mastercard, Amazon Web Services, Accenture, Mercy Corps and Everledger are all in partnership to build a system “that uses digital identity, payments and blockchain to enable transparency, promote financial inclusion and directly reward sustainable practices of small-scale growers and suppliers”.

+Amazon and central bank Banco de México are developing an innovative payment system with online and in-person payment feature via smartphones.

AI Regulation
Artificial Intelligence hype is felt all over the world yet only 38% of firms in U.S. have an explicit AI strategy, the report by Boston consulting Group states. However, AI governance and regulation by governments is gaining momentum:
  • In April 2018, the committee setup by the House of Lord submitted a report which included more than 70 regulation actions on AI and the setting up of a Centre for Data Ethics and Innovation. The centre was launched in November 2018.
  • In April 2018, 25 European countries signed an agreement of cooperation on AI, resolving to collectively deal with its “social, economic, ethical and legal questions”.
  • In France, a commission led by the French Data Protection Authority released a report in May 2018 on ethics issues.
  • “The U.S. Securities and Exchange Commission issued guidance in February 2017 on the use of robo-advisers, or algorithms that provide investment advice.
  • The German government adopted a strategy on AI in November 2018 with one of its three goals being to integrate “AI in society in ethical, legal, cultural and institutional terms in the context of a broad societal dialogue and active political measures.”.
  • China issued guidance in July 2017 on AI development that includes note of how the “disruptive technology” could impact social ethics, adding that great importance should be attached to “safe, reliable and controllable development” of AI.
  • India’s federal government adopted a national AI strategy in June 2018.
  • Japan’ federal government also released an AI technology strategy paper in March 2017.
  • South Korea’s federal government released a report in 2016 that outlines steps for regulating AI.
  • Australia’s federal government in May 2018 set aside $29.9 million for AI-related efforts, including development of an ethics framework.
  • New Zealand’s federal government said in May 2018 it will move quickly on an ethical framework for AI and its effects, and launched a report, “Artificial Intelligence: Shaping a Future New Zealand,” on the opportunities and challenges that come with using AI’.
  • Singapore’s federal government released a model framework for AI governance in January 2019 and an advisory council in June 2018 to guide the government on developing ethics standards for AI.