Last year, mobile money services reached a milestone. Over one billion accounts were recorded globally.
This was made known by GSMA, which unveiled the annual “State of the Industry Report on Mobile Money”. It offered a view of the mobile money landscape and also highlighted the impact of financial inclusion has on the economy and innovation and the emerging market.
2019 was a great year for the mobile money industry. It recorded close to $2 billion in daily transactions.
It also explores the kind of empowerment that comes with owning a mobile money account. Take instance; low-income households are accessing essential utility services, more women are using financial services, and smallholder farmers are getting paid faster and more conveniently.
With over 290 live services in 95 countries and 372 million live accounts, mobile money is entering the mainstream and becoming the path to financial inclusion in most low-income countries, says GSMA.
Digital transactions represent 57% of mobile money transactions.
Mats Granryd, director general of GSMA, says: “2019 was a momentous year for the mobile money industry. With over a billion registered accounts and close to $2 billion in daily transactions, mobile money is evolving like never before.”
“Originally a product for a few select markets, mobile money is now a global phenomenon, recording astonishing growth in emerging markets and reaching a broad range of customers.”
Granryd also points out that for the first time, digital transactions represented a higher percentage of mobile money flows.
“For customers, this marks a shift away from cash towards digital payments – for school fees, e-commerce, international remittances, savings, credit, pay-as-you-go utilities and more. For the industry, it is evidence the ‘payments-as-a-platform’ model – a strategic shift by the industry to encourage more value to remain digital and to diversify revenue models – is paying off.”
“customers now trust the system more” GSMA.
“Increased mobile connectivity and innovative services such as mobile money are building stronger and more inclusive communities,” says John Giusti, chief regulatory officer at GSMA.
“Surpassing one billion mobile money accounts represents a major milestone for an industry that did not exist just over a decade ago. The reach of mobile money agents is now 20 times that of bricks-and-mortar banks. Almost 1.7 billion people remain financially excluded, but the collective strength of the industry holds the potential to ensure everyone can be part of the new digital economy.”
“We are moving in the right direction, and with the right tools, we are a step closer to achieving an inclusive digital future for all,” Giusti concludes.
