Retail Payment Systems
In the OIC Member Countries
42
followed by Islamic Republic of Iran (75.09) and Bahrain (74.89). Meanwhile, the lowest rate
of debit cards users are Niger (0.49), Turkmenistan (1.24%), and Afghanistan (1.66%). The
highest rate of credit cards use is again in the United Arab Emirates (37.42), followed by
Turkey (32.82) and Bahrain (27.56); while the lowest are Turkmenistan (0.00), Pakistan
(0.13), and Bangladesh (0.34).
The internet has reached every country, yet the penetration rate remains low in some. For
example, in Somalia, there are only 1.63 per 100 internet users (2014), a small increase from
1.25 per 100 users in 2011. Even in some countries with higher per capita GDP, for example,
Malaysia, there are only 67.5% internet users per 100 people. As a consequence, internet
payment needs more time to become common in those countries.
However, internet subscriptions and mobile subscriptions are not closely correlated. In Niger,
for example, with a 1.95% internet penetration rate, there is a 44.43%mobile penetration rate,
an increase from 28.72% in 2011. In Mali, with only 7 internet subscribers per 100, there are
149 mobile subscribers per 100 people. While in Bahrain, with a very high internet
penetration rate (90.99 internet subscribers per 100 people) there is also very high rate of
mobile subscribers (173.27 per 100 people).
Mobile technologies tend to have a better penetration rate than internet subscribers. In some
African countries it is especially high. Senegal for example, has a 98.84% of mobile penetration
as of 2014 — higher than Turkey (94.79%). This is promising for providing mobile banking
services, particularly in order to attract those unbanked. This “frugal” innovation can be
efficient in improving financial inclusion and contribute to poverty alleviation. Indeed, there
are some countries with a quite high mobile penetration rate, for example Kuwait with
218.43% in 2014. However, it becomes clear that the rapidity of diffusion of mobile phones
out-performs the speed of diffusion of other technological innovations.
With regards to banked population, the highest are Republic Islamic Iran (92.18), followed by
the United Arab Emirates (83.20) and Bahrain (81.94). Currently, the most unbanked
populations are in Turkmenistan (1.79), Niger (3.49), and Guinea (6.17).
In our case study we investigate countries from three of these categories. Their growth rates
and per capita income figures show much about the potential for engagement with financial
institutions and also the level of disposable income. These factors strongly affect the
engagement with retail payment systems, and the propensity to have bank accounts or use
other financial instruments.