Mobile Money Surging: 1 Billion Users By The End Of The Year
A new Strategy Analytics report shows that mobile money transactions are set to surge, with global service users to break the one billion mark by the end of the year, equating to 20 per cent of unique mobile users.
The report predicts mobile money transactions will more than double from US$200 billion in value in 2016 to US$571 billion by the end of 2022.
Strategy states that the unbanked and social payments will drive growth.
“The mobile money sector continues to be driven by demand for access to basic financial services in emerging markets, the increasing maturity of established mobile money services, such as M-PESA in East Africa, MTN Money and Easypaisa, and the rising integration of payments in social platforms, in particular WeChat, BBM Money, and Facebook Messenger,” Nitesh Patel, Strategy Mobile Payments Service director, observed.
The sector is evolving beyond typical use-cases, including person-to-person money transfer and airtime top-ups, Strategy notes, enabling a broader set of use cases, including payment of utility bills, salary and benefit dispersal, merchant payments and international remittances.
“We predict a maturing mobile money ecosystem to raise the number of active mobile money users, the average number of mobile money transactions per user, and ultimately the overall value of transactions,” David Kerr, Strategy vice president, commented.
“Almost 75 per cent of mobile money users will come from Asia Pacific and Middle East and Africa regions.”