Mobile money is shaping up to be one of the most exciting areas in mobile communications and is quickly transforming the way in which consumers and enterprises transact. Mobile network operators (MNOs) are taking advantage of the growing popularity of mobile money to boost average revenue per user and counter the increasing pressure on voice revenues.
MOBILE MONEY AFRICA
2014: $656 million
2015: $799 million
2016: $976 million
2017: $1125 million
2018: $1320 million
Source: CardData; Frost & Sullivan
There has been a substantial rise in the adoption of mobile banking services as the majority of Africans have limited access to traditional banking services. With the expansion of mobile infrastructure and availability of affordable smart devices, it has become easier for consumers to gain access to banking services on their mobile devices than through costly traditional banking channels.
Nonetheless, the volume of mobile money transactions will be kept in check by the lack of interoperability between operators’ solutions and restrictions on cross-border transactions. Concerns on the security and reliability of mobile money solutions, particularly in markets with intermittent network access, will also challenge market development.
Service providers need to increase their mobile agent networks and enter into partnerships, with other providers in the ecosystem, in order to fuel the uptake of mobile money services. They should also expand the application of mobile money beyond basic transfers to more innovative integrations of the service in consumer-to-business transactions. Meanwhile, MNOs must ensure that their distribution networks are accessible and reliable through float management and customer service training.
For more data on M-Payments access CardData®. For information and commentary on M-Payments visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. RAM Research® forecasts on M-Payments are available exclusively through CardWeb.com.®