Bahrain, Egypt and Qatar are the countries in Africa with the greatest potential for DCB, being secure, innovative, already using carrier billing and offering the best growth potential.
The latest DCB Index from analysts at Evina and Telecoming, has introduced a five point, four-criteria scale for assessing DCB markets and, having applied it to the African market, have shown that a range of Middle East nations offer excellent potential for DCB services, with Bahrain, Egypt and Qatar coming out on top.
These countries score 3.7, 3.3 and 3.2 respectively out of five across a range of weighted attributes. Each is seen as offering a key tropes that are ready for driving further DCB development.
Bahrain stands out, says the report, for its extensive DCB protection against fraud compared to its neighbouring countries. Local operators have integrated DCB payments models, but have not yet invested in innovation opportunities, not leveraging DCB to its highest potential.
Egypt is a true breeding ground for DCB development. Many local mobile operators and merchants are working together to promote DCB as an effective payment method. Egypt must remain in this direction: mobile operators should continue strengthening DCB and not get side-tracked by tempting new ventures. DCB needs to be brought to its full potential.
Qatar holds tremendous potential for the development of DCB and its innovative uses. Forward-thinking mobile players have enabled in-app purchases via DCB. The overall innovative approach to mobile payments, such as paying employees via mobile money, shows that the country has the right mindset to develop the DCB payment channel in the coming years, with adequate fraud protection still to be achieved.
Surprisingly, Iraq comes out at number five, already seeing extensive use. However, security remains an issue.
At the other end of the scale, Cameroon and Kuwait come out bottom, both with 2.4 out of five. Both countries are already seeing extensive use of DCB and the population is receptive, however security is a real problem, says the report.
The index is based on four key criteria: the level of fraud protection based on each country’s specific fraud rate; the level of DCB innovation in the country; the level of penetration already in the market; and the growth potential according to population level and smartphone and credit card penetration.
See the full infographic here