A new GSMA report reveals that mobile money is driving economic growth and the expansion of financial services in sub-Saharan Africa.
March 19, 2024, London: Mobile money services, particularly in West Africa, have seen exponential growth, with registered accounts doubling in the last decade, according to the 2024 'State of the Mobile Money Industry Report' prepared by the GSMA. In 2023, global monetary transactions increased by 14% year-on-year (y-o-y), equivalent to $2.7 million per minute.
The GSMA Mobile Money Programme, supported by the Bill & Melinda Gates Foundation, works to improve the development of mobile money ecosystems for the underserved. The 2024 edition finds a 23% year-on-year increase in transaction volumes, reaching 85 billion a year. Between 2013 and 2022, countries with mobile money services reported $600 billion more GDP than those without, which is equivalent to mobile money increasing GDP by around 1.5%. However, while both transaction value and volume increased, growth rates were slower compared to 2022, showing that mobile money is still being used more frequently, but for smaller transactions.
Mobile money is driving socioeconomic impact
Mobile money drives financial inclusion and digital access, serving as a catalyst to achieve 15 of the 17 United Nations Sustainable Development Goals (SDGs), up from 13 in 2019. As the mobile money market begins to mature , the use cases are becoming more sophisticated. More and more providers offer adjacent financial products, such as credit, savings and insurance. Credit is the most popular adjacent financial service offered by mobile money providers (MMP), with a 73% year-on-year increase in the number of credit products offered.
This diversification of use cases is empowering underserved people, including women and rural populations, to save money through mobile money accounts. MMPs tracking disaggregated data found a 98% increase in the cumulative number of unique customers saving through mobile money, between September 2022 and June 2023. Additionally, increased enterprise adoption of mobile money caused Average revenue per user will grow from $2.2 in September 2022 to $3.2 in June 2023, an increase of more than 40%.
Mobile money accounts are on the rise
In 2023, registered mobile money accounts globally reached 1.75 billion, an increase of 12% from 2022. Although the year-on-year growth rate of registered mobile money accounts is slowing (from 15% in 2022 and 19% in 2021), this reflects the beginning of the maturation of the industry. Growth has been pronounced in sub-Saharan Africa, where the share of registered accounts has increased for two consecutive years to 47% in 2023, the highest figure since 2019. Sub-Saharan Africa accounted for more than 70% of total registered account growth in 2023 . , and South Asia contributes a fifth.
West Africa becomes mobile money powerhouse
West Africa, particularly Nigeria, Ghana and Senegal, has seen a 100% increase in registered accounts between 2013 and 2023, establishing itself as a leader in mobile money adoption. This growth, driven by enabling regulatory frameworks, has facilitated a shift towards digital transactions, supported by an increase in international remittances and commercial payments. For example, the West African Economic and Monetary Union1 (UEMOA) experienced significant growth in mobile money usage by adding more than 110 million new mobile money accounts between 2018 and 2022. In turn, it boosted financial inclusion from 56% to 71% for a population of more than 137 million, of which 60% reside in rural areas. areas2.
Significant barriers remain
Barriers to accessing mobile money include low mobile device ownership, perceived relevance, digital skills, social norms and trust levels. Lack of mobile device ownership remains the biggest obstacle; Although the total number of registered mobile money accounts stands at 1.75 billion, a significant gender gap persists. Globally, women are 7% less likely than men to own a phone; This gap in mobile device ownership exists in all countries in the survey except Kenya.
Beyond addressing individual challenges, an enabling regulatory landscape is crucial to driving global financial inclusion and mobile money adoption. Taxation remains a major regulatory challenge for many mobile money services. Mobile money taxation can be a convenient revenue-raising opportunity for many governments in sub-Saharan Africa. However, countries such as Ghana and Tanzania have experienced the negative effects of taxing mobile money transactions.
Ashley Olson Onyango, Director of Financial Inclusion and AgriTech at GSMA, comments “Mobile money has demonstrated its potential to transform economies and societies, driving financial inclusion and sustainable development around the world. As the industry has begun to mature, it is also clear that mobile money offers a strong business proposition. Between 2022 and 2023, the average revenue per user increased by 40%, validating the recent investment the industry has made. To ensure mobile money remains secure, accessible and affordable, there is a clear need for governments and regulators to work with financial service providers to launch financial education programs that can empower underserved populations and Improve your financial decision making.
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About the GSMA
The GSMA is a global organization that unifies the mobile ecosystem to discover, develop and deliver critical innovation for positive business environments and social change. Our vision is to unlock the full power of connectivity so that people, industry and society thrive. Representing mobile operators and organizations across the mobile ecosystem and adjacent industries, the GSMA offers its members three broad pillars: connectivity for good, industry services and solutions, and outreach. This activity includes advancing policy, addressing today's biggest societal challenges, supporting the technology and interoperability that make mobile devices work, and providing the world's largest platform to convene the mobile ecosystem at the MWC and M360 series of events. We invite you to learn more at gsma.com
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