No doubt online shopping is the big thing now and probably the future of business. It is therefore not a surprise that a lot of companies are aggressively targeting consumers online from all angles.
While this ICT-driven business started in the industrialized western countries, and have just recently started rolling out in emerging markets; the developed and emerging markets are not the same. In the developed market, shoppers can easily get a credit card to facilitate online purchases. The same cannot be said about emerging markets, as traditional banks have left out a big number of the population unbanked.
With such a large population unbanked e-commerce faces a challenge
The process of opening and maintain a bank account in emerging markets is marred with bureaucracies and paperworks. Unfortunately, the model of e-commerce being used in most emerging markets is imported from the industrialized markets, and immediately finds a challenge when it comes to means of payment.
While mobile money services (such as M-Pesa in Kenya) has played a significant role in filling the gap of the lack of credit cards in emerging markets. As Brian Richardson, a mobile banking …read more