Why mobile payments are a good boost for small Southeast Asian businesses 12.05.2017

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For the past couple of years, mobile payments have exploded all around South-East Asia, North and South Africa, South America. However, there has been some misconception about the companies which use this payment method. Many claim that it is mainly used by big companies and retailers with small businesses left on the outskirts of a growing economy. If you were interested in why mobile payments are a good boost to small Southeast Asian businesses, here is your answer.

A mobile phone in every hand

 

The main reason why mobile payments have such a large presence in this region is simply because everybody has some sort of a mobile phone on their hands. Practically every household has one or more of these devices. Why wouldn’t they? Mobile phones can be relatively affordable and make monetary transactions fast and efficient. That is one of the reasons the e-commerce market in SEA has fully embraced SMS payments as a primary means of digital payment. Another thing to keep in mind is that for the past couple of years the country hasn’t seen much growth in the banking sector. There are an in fact only a handful of financial institutions which successfully operate in these countries and have a proper number of offices to serve their customer base. Because of this, more small, medium and big businesses switch to mobile payments as a primary source of income.

 

Pay on the go

 

So what is it that drives people towards SMS-billing? 

 

        Simplicity

 

Compared to banks, most mobile payment providers offer a simple way of receiving fees from costumers. Usually, these systems are implemented through a website plugin that is available in different content managing systems and languages. All clients have to do is set a price for goods and services they wish to sell and add a payment button on the page. Within seconds a buyer will receive an SMS message with a short number he has to message in order to finish a transaction. The required sum will then be taken off his mobile number account. Simple as that the customer and seller will both get what they want.

 

Mobile payments are also easier on users side as

 

    •    Reach

 

Another thing that draws costumers to SMS billing is the ability to sell to whoever you like whenever you like. Say you are a small business owner who owns a retail shop somewhere in Dhaka, but want to expand beyond. Well, with mobile currency your business can receive payments from costumers across the country. All you have to do is send them wares on time. Of course there is an option of sending an invoice, but those usually take a staggering 14 days to be delivered.

 

Costumer loyalty

 

If you provide your clients with a simple to use payment option, they will most likely return to your business for more goods and services. This is a great way to built a consumer base and provide it with simple means of payment.