Tap Into the Mobile Payments Revolution
The trends and contenders that are shaping mobile payments.
Thanks to Purefunds Mobile Payments ETF (IPAY) for helping us put this together.
Yesterday, user-friendly payment processor Stripe announced a strategic investment and partnership from Visa that values the company at $5 billion. Other investors that participated are not unknowns either: Kleiner Perkins Caufield Byers, American Express, and Sequoia. It was only in December that Stripe was valued at $3.5 billion and in their previous financing, they were valued at just half of that. Stripe will use Visa’s international connections to help it expand beyond the 20 countries it currently services.
This type of story is not unusual in the payment space. Companies are scrambling to scale or adopt new technologies that integrate mobile and electronic features to make it easier, cheaper, and faster for customers to pay. The reason for this is that the payments ecosystem has always been more cumbersome and more expensive than it should be. In the United States alone, retail merchants that accept card-based payments were charged about $67 billion in fees. Add the rest of the world to that pie, and it makes it clear that the payments space is as ripe for disruption as any other.
Mobile and electronic payments allow customers to pay for goods with a tap of a phone or the press of a button. Two of every three Americans have a smartphone, and mobile payments can typically happen faster with less fees. The earliest adopters of mobile payments have a younger and affluent profile: they average just over 30 years old, have a higher annual income, and spend over 2x more on retail than unwilling non-users of mobile payments.
Big Data and the Developing World
One of the most attractive benefits of mobile payments is the integration of big data and predictive analytics. Retailers will have the capability to link purchases directly with location (GPS), consumer behaviour, purchase history, demographics, and social influence. Analyzing this information will allow companies to reach out to consumers with tailored offerings, loyalty programs, and rewards. Customers will be able to take action right from their mobile device.
The opportunities in payments are not just limited to in the United States or even the developed world. Perhaps one of the most interesting opportunities for the mobile payments space is in Africa, where bank penetration is extremely low at only about 25% and mobile phone penetration is higher at 60%. Kenya is a good example of a market where digitization has reached a large portion of the population, giving mobile payments an 86% household penetration.
Mckinsey did an analysis looking at the size of revenue pools for mobile payments if each market in Africa had the same penetration as Kenya, and it sees the pools more than doubling in places like Ethiopia and Nigeria. With the population in sub-Saharan Africa expected to balloon from 926 million to 2.2 billion by 2050, their appears to be even greater opportunity.
The earliest potential in the mobile and electronic payments market appears to be in areas such as micropayments, incidental payments, recurring bills, peer-to-peer money transfers, and cryptocurrency. However, in the long term, the concept can be applied to many different facets of commerce.
Mobile payments may continue to disrupt the big payments market because of several factors including a young and growing userbase, ease of use, faster transactions, cheaper costs, and increased adoption. As Smittipon Srethapramote, who covers the North American payments industry for Morgan Stanley, concludes in a summary on the subject: “Mobile Payments can expand the global revenue pie from $175 billion to $250 billion, including $45 billion in developed markets and $30 billion in emerging markets.”
The Top Downloaded Apps in 2022
Six of the top 10 most downloaded apps in Q1 2022 were social media apps, and four of them are owned by Meta.
The Top Downloaded Apps in 2022
Whether they’re providing a service like ride-sharing or acting as a mere source of entertainment, mobile apps have become an integral part of many peoples’ day-to-day lives.
But which apps are most popular among users?
This graphic uses data from a recent report by Sensor Tower to show the top 10 most downloaded apps around the world in Q1 2022 from the Google Play and Apple App Store.
Social Reigns Supreme
According to the report, total app downloads reached 36.9 billion in Q1 2022, a 1.4% increase compared to Q1 2021.
A majority of the top 10 most downloaded apps were social media platforms, with Meta and ByteDance owning six of the top 10.
|2||Photo and video|
|7||Snapchat||Photo and video|
|9||CapCut||Photo and video|
Meta’s four platforms on the list are Instagram, Facebook, WhatsApp, and Messenger, while ByteDance owns TikTok and video-editing platform CapCut.
Just outside the top 10 are Zoom and WhatsApp Business (yet another Meta-owned app).
TikTok’s Winding Road to the Top
In Q1 2021, TikTok exceeded 3.5 billion all-time downloads, becoming the fifth app (and the first non-Meta app) to reach this milestone. This is impressive considering the app has been banned in India as of June 2020. Prior to the ban, India accounted for 30% of TikTok’s downloads.
India’s not the only country that’s banned the use of TikTok. Pakistan has blocked TikTok multiple times because of concerns over “inappropriate” content. However, it’s worth noting that the bans in Pakistan only lasted a few days before being lifted, and currently, Pakistanis are able to access the platform.
Top 10 Highest Grossing Apps
TikTok isn’t just the most downloaded app in the world—it’s also the highest-grossing non-game app, based on Q1 2022 revenue from the App Store and Google Play:
|2||YouTube||Photo and video|
TikTok generated an impressive $821 million in consumer spending in the last quarter. The video-sharing platform was the top-grossing app on the App Store, and the second-highest-grossing on Google Play, coming just after Google One.
While none of Meta’s platforms made it onto the top 10 list for gross revenue, these platforms make a ton of money that doesn’t necessarily flow through app stores. In 2021, Meta generated more than $117.9 billion in revenue, with over 97% of that coming from ads.
Growth’s on the Horizon
The pandemic had a massive impact on the app market.
In 2020, app spending on things like premium access, in-app purchases, and subscriptions surged by 30% year-over-year to reach $111 billion.
And while COVID-19 restrictions are easing in most places around the world, app spending isn’t likely to taper off anytime soon. By 2025, spending is expected to grow to $270 billion.
Synthetic Biology: The $3.6 Trillion Science Changing Life as We Know It
The field of synthetic biology could solve problems in a wide range of industries, from medicine to agriculture—here’s how.
How Synthetic Biology Could Change Life as we Know it
Synthetic biology (synbio) is a field of science that redesigns organisms in an effort to enhance and support human life. According to one projection, this rapidly growing field of science is expected to reach $28.8 billion in global revenue by 2026.
Although it has the potential to transform many aspects of society, things could go horribly wrong if synbio is used for malicious or unethical reasons. This infographic explores the opportunities and potential risks that this budding field of science has to offer.
What is Synthetic Biology?
We’ve covered the basics of synbio in previous work, but as a refresher, here’s a quick explanation of what synbio is and how it works.
Synbio is an area of scientific research that involves editing and redesigning different biological components and systems in various organisms.
It’s like genetic engineering but done at a more granular level—while genetic engineering transfers ready-made genetic material between organisms, synbio can build new genetic material from scratch.
The Opportunities of Synbio
This field of science has a plethora of real-world applications that could transform our everyday lives. A study by McKinsey found over 400 potential uses for synbio, which were broken down into four main categories:
- Human health and performance
- Agriculture and food
- Consumer products and services
- Materials and energy production
If those potential uses become reality in the coming years, they could have a direct economic impact of up to $3.6 trillion per year by 2030-2040.
1. Human Health and Performance
The medical and health sector is predicted to be significantly influenced by synbio, with an economic impact of up to $1.3 trillion each year by 2030-2040.
Synbio has a wide range of medical applications. For instance, it can be used to manipulate biological pathways in yeast to produce an anti-malaria treatment.
It could also enhance gene therapy. Using synbio techniques, the British biotech company Touchlight Genetics is working on a way to build synthetic DNA without the use of bacteria, which would be a game-changer for the field of gene therapy.
2. Agriculture and Food
Synbio has the potential to make a big splash in the agricultural sector as well—up to $1.2 trillion per year by as early as 2030.
One example of this is synbio’s role in cellular agriculture, which is when meat is created from cells directly. The cost of creating lab-grown meat has decreased significantly in recent years, and because of this, various startups around the world are beginning to develop a variety of cell-based meat products.
3. Consumer Products and Services
Using synthetic biology, products could be tailored to suit an individual’s unique needs. This would be useful in fields such as genetic ancestry testing, gene therapy, and age-related skin procedures.
By 2030-2040, synthetic biology could have an economic impact on consumer products and services to the tune of up to $800 billion per year.
4. Materials and Energy Production
Synbio could also be used to boost efficiency in clean energy and biofuel production. For instance, microalgae are currently being “reprogrammed” to produce clean energy in an economically feasible way.
This, along with other material and energy improvements through synbio methods, could have a direct economic impact of up to $300 billion each year.
The Potential Risks of Synbio
While the potential economic and societal benefits of synthetic biology are vast, there are a number of risks to be aware of as well:
- Unintended biological consequences: Making tweaks to any biological system can have ripple effects across entire ecosystems or species. When any sort of lifeform is manipulated, things don’t always go according to plan.
- Moral issues: How far we’re comfortable going with synbio depends on our values. Certain synbio applications, such as embryo editing, are controversial. If these types of applications become mainstream, they could have massive societal implications, with the potential to increase polarization within communities.
- Unequal access: Innovation and progress in synbio is happening faster in wealthier countries than it is in developing ones. If this trend continues, access to these types of technology may not be equal worldwide. We’ve already witnessed this type of access gap during the rollout of COVID-19 vaccines, where a majority of vaccines have been administered in rich countries.
- Bioweaponry: Synbio could be used to recreate viruses, or manipulate bacteria to make it more dangerous, if used with ill intent.
According to a group of scientists at the University of Edinburgh, communication between the public, synthetic biologists, and political decision-makers is crucial so that these societal and environmental risks can be mitigated.
Balancing Risk and Reward
Despite the risks involved, innovation in synbio is happening at a rapid pace.
By 2030, most people will have likely eaten, worn, or been treated by a product created by synthetic biology, according to synthetic biologist Christopher A. Voigt.
Our choices today will dictate the future of synbio, and how we navigate through this space will have a massive impact on our future—for better, or for worse.
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