In many ways, the mobile phone democratised the financial services industry.
In its 10th annual report on the State of the Industry on Mobile Money, the GSMA revealed that mobile money adoption and use saw continued growth in 2021, processing a record $1 trillion annually. The industry enjoyed a substantial increase in the number of registered accounts globally, up 18% since 2020.
The underlying appeal of mobile money is the provision of financial services through non-traditional channels (i.e. the mobile phone) that are cheaper to access, manage, and use.
Nigeria’s mobile money space is currently having a moment, given the CBN’s latest decision to grant MTN Nigeria the licence to provide a selection of mobile money services through a payment service bank licence (MoMo PSB).
However, since MoMo PSB is limited by product variety, but has distribution and a strong brand as strengths, MoMo PSB’s success is likely to depend on how well they can integrate other financial services on to their platform.
According to the report, the volume of person-to-person transactions was up to more than 1.5 million every hour. Mobile money is also very important in Sub-Saharan Africa (SSA). The region is currently responsible for an estimate of at least $697.7 billion in transaction value in 2021 alone (nearly 70% of the global figure).
Basically, there is nowhere else in the developing world that moves more money purely on mobile phones than SSA. Just in case you haven’t heard