The document provides an overview and analysis of the state of the mobile money industry in 2015 based on a survey of 107 mobile money providers. Key findings include:
- Mobile money services have expanded to 64% of developing countries but growth is slowing, with only 13 new services launched in 2015.
- Total registered agents reached 3.2 million globally in 2015, though the active agent rate remains a challenge at 51.4%.
- 134 million accounts were considered active in the past 90 days as of June 2015, with West Africa seeing dramatic growth in active agents and accounts.
- Smartphones and internet access could enhance access but few have successfully leveraged this opportunity at scale so far.
- Financial inclusion in Bangladesh has grown from 37% in 2014 to 43% in 2015, driven largely by growth in mobile money use and registration. Mobile money use now surpasses use of non-bank financial institutions.
- Active use of financial accounts has also increased, especially for mobile money where active account holders doubled from 4% to 8%. Mobile money is also seeing more advanced uses like bill payments and loans growing.
- While registered mobile money accounts are growing, unregistered/over-the-counter mobile money remains the dominant form of access, though the gap is closing.
Kenya Mobile Money and Digital Finance Survey Fall 2013finclusion
InterMedia's Financial Inclusion Insights research program is tracking the use of mobile money and other digital financial services in Africa and Asia.This report summarizes findings from the FII Tracker Survey in Kenya conducted during Fall 2013
ACCELERATING FINANCIAL INCLUSION IN SOUTH-EAST ASIA WITH DIGITAL FINANCE by ADBHiếu T. D. Võ
This document analyzes how digital finance can accelerate financial inclusion in Southeast Asia, focusing on Indonesia, the Philippines, Cambodia, and Myanmar. It finds that digital solutions could address 40% of unmet demand for payments and 20% of unmet credit needs. While digital finance alone cannot close all inclusion gaps, the analysis estimates it could boost GDP by 2-3% in Indonesia and the Philippines and 6% in Cambodia by increasing access to financial services. For success, regulatory support is needed to address supply-side barriers and encourage suitable digital product design and delivery models.
Regulatory ecosystem improvement can boost mobile money in bangladeshMd. Ashraful Alam
This is a presentation on the regulatory framework of mobile money in Bangladesh and how it can boost growth of mobile money in Bangladesh, prepared as part of the Mobile Money for Financial Inclusion course.
This document provides a summary of key learnings from mobile microfinance pilots in West Africa and Southeast Asia. The main findings are:
1) Mobile microfinance can increase access to banking by more than twofold and lower operational costs for microfinance institutions by 20-50% compared to traditional models.
2) Setting up mobile microfinance requires long strategic alignment between partners, agreement on timelines and investments, and kicking off execution in parallel.
3) Marketing communications need to stimulate trust in financial products through a well-known brand, while also building sustained usage through additional trust-building measures.
Digital financial services are becoming increasingly important, moving transactions from cash-based to digital. This is bringing convergence between mobile networks and banking services. Regulations need to collaborate across sectors to address this change. Light-touch regulation can encourage innovation while still protecting consumers. Competition regulations must ensure fair access to networks and interoperability to avoid dominance by large players.
RBZ GOVERNORS SPEECH - 2016 - AGENT BANKING AND DIGITAL FINANCIAL SERVICESKingstone Pumula Kanyile
1) The document discusses agent banking and digital financial services in Zimbabwe, noting their potential to increase access to financial services.
2) It outlines Zimbabwe's National Financial Inclusion Strategy to increase access to affordable financial services to 90% of the population by 2020.
3) The Reserve Bank of Zimbabwe regulates digital financial services and agent banking, which have grown significantly in recent years and now include over 3,000 agent banking outlets and 39,000 mobile payment agents.
The Future of Telecoms in Africa, Feb 2014, DeloitteAdrian Hall
Africa can no longer be considered the Dark Continent. Given the rate at which mobile connectivity is growing, it seems only natural that the way business is done will change. But how will Telco’s embrace this change and are they even ready for it?
- Financial inclusion in Bangladesh has grown from 37% in 2014 to 43% in 2015, driven largely by growth in mobile money use and registration. Mobile money use now surpasses use of non-bank financial institutions.
- Active use of financial accounts has also increased, especially for mobile money where active account holders doubled from 4% to 8%. Mobile money is also seeing more advanced uses like bill payments and loans growing.
- While registered mobile money accounts are growing, unregistered/over-the-counter mobile money remains the dominant form of access, though the gap is closing.
Kenya Mobile Money and Digital Finance Survey Fall 2013finclusion
InterMedia's Financial Inclusion Insights research program is tracking the use of mobile money and other digital financial services in Africa and Asia.This report summarizes findings from the FII Tracker Survey in Kenya conducted during Fall 2013
ACCELERATING FINANCIAL INCLUSION IN SOUTH-EAST ASIA WITH DIGITAL FINANCE by ADBHiếu T. D. Võ
This document analyzes how digital finance can accelerate financial inclusion in Southeast Asia, focusing on Indonesia, the Philippines, Cambodia, and Myanmar. It finds that digital solutions could address 40% of unmet demand for payments and 20% of unmet credit needs. While digital finance alone cannot close all inclusion gaps, the analysis estimates it could boost GDP by 2-3% in Indonesia and the Philippines and 6% in Cambodia by increasing access to financial services. For success, regulatory support is needed to address supply-side barriers and encourage suitable digital product design and delivery models.
Regulatory ecosystem improvement can boost mobile money in bangladeshMd. Ashraful Alam
This is a presentation on the regulatory framework of mobile money in Bangladesh and how it can boost growth of mobile money in Bangladesh, prepared as part of the Mobile Money for Financial Inclusion course.
This document provides a summary of key learnings from mobile microfinance pilots in West Africa and Southeast Asia. The main findings are:
1) Mobile microfinance can increase access to banking by more than twofold and lower operational costs for microfinance institutions by 20-50% compared to traditional models.
2) Setting up mobile microfinance requires long strategic alignment between partners, agreement on timelines and investments, and kicking off execution in parallel.
3) Marketing communications need to stimulate trust in financial products through a well-known brand, while also building sustained usage through additional trust-building measures.
Digital financial services are becoming increasingly important, moving transactions from cash-based to digital. This is bringing convergence between mobile networks and banking services. Regulations need to collaborate across sectors to address this change. Light-touch regulation can encourage innovation while still protecting consumers. Competition regulations must ensure fair access to networks and interoperability to avoid dominance by large players.
RBZ GOVERNORS SPEECH - 2016 - AGENT BANKING AND DIGITAL FINANCIAL SERVICESKingstone Pumula Kanyile
1) The document discusses agent banking and digital financial services in Zimbabwe, noting their potential to increase access to financial services.
2) It outlines Zimbabwe's National Financial Inclusion Strategy to increase access to affordable financial services to 90% of the population by 2020.
3) The Reserve Bank of Zimbabwe regulates digital financial services and agent banking, which have grown significantly in recent years and now include over 3,000 agent banking outlets and 39,000 mobile payment agents.
The Future of Telecoms in Africa, Feb 2014, DeloitteAdrian Hall
Africa can no longer be considered the Dark Continent. Given the rate at which mobile connectivity is growing, it seems only natural that the way business is done will change. But how will Telco’s embrace this change and are they even ready for it?
Reference
e-Conomy SEA is a multi-year research program launched by Google and Temasek in 2016. Bain & Company joined the program as lead research partner in 2019. The research leverages Bain analysis, Google Trends, Temasek research, industry sources and expert interviews to shed light on the Internet economy in Southeast Asia. The information included in this report is sourced as “Google & Temasek / Bain, e-Conomy SEA 2019” except from third parties specified otherwise.
Disclaimer
The information in this report is provided on an “as is” basis. This document was produced by and the opinions expressed are those of Google, Temasek, Bain and other third parties involved as of the date of writing and are subject to change. It has been prepared solely for information purposes over a limited time period to provide a perspective on the market. Projected market and financial information, analyses and conclusions contained herein should not be construed as definitive forecasts or guarantees of future performance or results. Google, Temasek, Bain or any of their affiliates or any third party involved makes no representation or warranty, either expressed or implied, as to the accuracy or completeness of the
information in the report and shall not be liable for any loss arising from the use hereof. Google does not provide market analysis or financial projections. Google internal data was not used in the development of this report.
e-Conomy SEA 2019 report (from Google and Temasek)Duy Hoang
The Internet economy in Southeast Asia has grown rapidly in recent years, surpassing $100 billion in gross merchandise value for the first time in 2019. This represents a nearly 40% increase from 2018 and more than triple the size in 2015. Powered by increasing mobile internet adoption and changing consumer behavior, sectors like e-commerce and ride hailing have seen especially strong growth, becoming integral parts of daily life for many in the region. If growth continues at its current pace, the Internet economy is projected to reach $300 billion by 2025.
The document analyzes the financing industry in Bangladesh using a PESTLE analysis. It finds that Bangladesh has low financial inclusion, with only 2.2 banking branches and 1.4 ATM booths per 100 square kilometers. Politically, inconsistent policies between ruling powers and misuse of power affect the industry. Economically, microfinancing increases rural purchasing power and mobile financing costs less than traditional channels. Socially, many people distrust banks and find opening accounts inconvenient, while mobile banking is seen as easier for money transfers. Technologically, rapid mobile growth enables the industry but also raises security and infrastructure issues. Legally, only bank-led mobile financing is approved, and transaction limits are in place. Environmentally, mobile financing
Developments in the African Digital Economy - Fola OdufuwaFola Odufuwa
Presentation made at the ITU 2018 Regional Human Capacity Building Workshop on
“Strengthening Capacities in Internet Governance in Africa” describing ways to create an enabling environment for the development of the digital economy in the African region; how legal frameworks are aiming to facilitate e-commerce and the development of related services, such as local online marketplaces and e-payment mechanisms, as well as digital financial services.
IMAP Fintech Sector Leaders share insights into the global Fintech sector.
They look at the short- and long-term effects of the COVID pandemic and which subsectors stand to lose and who ultimately stands to benefit. Sharing their thoughts on key themes disrupting the sector, including payments, digitalization, lending and mobile, they examine
how these have been impacting M&A activity and valuations.
They provide an overview of the most active players, as well as expectations for this key sector moving forward.
Financial inclusion in Africa is low compared to other regions, with only 34% of adults having a bank account. There are significant disparities within countries as well, with women, youth, and the poor being most financially excluded. Expanding access to financial services, products tailored to marginalized groups, and leveraging remittances from the African diaspora could help drive development and economic growth across the continent.
The document discusses how mobile phones are transforming Africa. It describes how mobile phones have become essential devices across the continent, improving financial inclusion and helping work around infrastructure problems. Innovations like mobile money services have disrupted banking by allowing digital financial transactions without bank accounts. Mobile phones are also transforming agriculture, healthcare, and increasing transparency in politics. Entrepreneurs have created mobile applications that help farmers access market information, verify authenticity of medicines, and monitor political violence.
Nepal has a large youth population, with 60% of people between ages 16-40. It relies heavily on remittances, which make up 30% of its GDP. There is potential to expand financial access through fintech given Nepal's growing mobile and internet usage. The country has low banking penetration, with 40% of youth unbanked, indicating an opportunity for innovative financial services. Setting up a fintech company in Nepal could tap into the large youth market and growing tourism industry by providing payment and digital finance solutions, helping to increase financial inclusion. However, regulatory hurdles and a history of political instability and corruption pose challenges to fintech growth in Nepal.
The document is a draft due diligence report on the mobile point of sale (mPOS) market in South Africa. It finds that the mPOS market is growing rapidly due to increasing smartphone adoption, simpler regulations, and a push for cashless payments. Transaction volumes are expected to grow at a CAGR of 23.5% from 2014 to 2019, while devices in circulation will grow at 32% annually. Major drivers include the ease of use for small retailers and proliferation of smartphones, while low barriers to entry and new payment technologies pose challenges. Leading mPOS providers are banks like Nedbank and Absa partnering with fintechs, as well as dedicated companies like Yoco.
Financial inclusion has become a global priority since the financial crisis. Developing nations must continue economic growth to stabilize the world. ICT can help increase financial inclusion affordably and efficiently, as seen in experiments like M-Pesa in Kenya which contributed to 10% of GDP through remittances. Strategic planning is needed to ensure ICT benefits human development and helps achieve goals like those in the Millennium Development Declaration. India is working to increase financial inclusion through initiatives like Aadhaar identification and expanding access to banks, ATMs, and mobile money.
Over the last decade, Africa has become a global leader in mobile money with the rate of smartphone adoption at twice the global scale. But what challenges is the industry facing and how can these be overcome? Our new article, sponsored by Mazars, explores.
Money remittance business philippines,philippines remittance statistics,inter...Ashish Chauhan
Ken Research Latest report on Online Remittance Philippines which covers Online Remittance Philippines,Online Bill Payment Philippines,Migration in Philippines,Bill Payment mode Philippines,Personal Remittance Philippines Statistics,Philippines Remittance Statistics,Pawnshop business growth, OFW Remittance Statistics,Online bill payment services in the Philippines,Money Transfer Operator Remittance Philippines,International Remittance Philippines,Inbound remittance Philippines,Outbound remittance Philippines,
Revenue from Digital Technologies to Fund SDGs in AfricaLyla Latif
This presentation focused on how to mobilise additional funds from digital technologied to finance development and also identifed the areas from which illicit finance is moved.
The document provides an overview of the South African mobile point of sale (mPOS) market. It finds that the mPOS market is growing rapidly due to increased smartphone adoption and a push for cashless payments. Transaction volume is expected to grow from $0.9 billion in 2014 to $21.4 billion in 2019 while the number of mPOS devices in circulation will increase from 90,000 to 360,000 in that period. Key drivers of the market include the ease of adopting mPOS for small retailers and the proliferation of smartphones. Competition in the market is also growing as major banks and new startups launch their own mPOS solutions.
Financial inclusion in Pakistan increased from 7% to 9% between 2014 and 2015. Banks remain the major contributor to financial inclusion, with 7% of adults having bank accounts. Mobile money account ownership doubled between 2014 and 2015 to 1% as mobile money and non-bank financial institutions also contribute to growing financial inclusion. Awareness of mobile money remains high but usage lags, with only 13% of those aware having used mobile money. Literacy and mobile phone skills remain significant barriers to greater adoption of digital financial services.
Building a digital Nigeria is an Economist Intelligence Unit report. The findings are based on desk research, interviews and fieldwork in Nigeria conducted by The Economist Intelligence Unit. The research was sponsored by Accenture.
IMTFI Blog Post -- Mobile Money Potential in the GILA RegionJoel Patenaude
This document discusses the potential for mobile money in the Greater Ibadan Lagos Accra (GILA) region of West Africa. It summarizes research conducted in the region which found that cash remains the dominant method for cross-border transactions, though bank cards are also increasingly used. Many traders in the region own smartphones, indicating an openness to digital financial services. The document proposes pilots to test extending mobile money agents across borders, facilitating cross-border airtime markets, addressing foreign exchange, and using mobile phones for identity solutions to begin offering cross-border mobile money services in the region.
Measuring financial inclusion the global findex asli demirguc kunt leora klapperDr Lendy Spires
The Global Findex survey collects comparable cross-country data on financial inclusion by surveying individuals around the world to measure the use of formal and informal financial services. It aims to identify groups with the greatest barriers to access in order to inform policies to expand access. Funded through 2020, the 2011 survey added financial services questions to the Gallup World Poll. Key findings include that over 2.5 billion adults lack bank accounts, with the poor, women, youth and rural residents least likely to have one. Mobile money has increased access in some areas like Kenya. The data is used by policymakers and organizations to benchmark progress on financial inclusion.
In 2015, the CGAP-funded Financial inclusion Insights Survey was conducted in Ghana by InterMedia to analyze the trends and usage of mobile money in the country. This report shares data from the survey and highlights opportunities for growth and expansion.
for more information, visit www.cgap.org/mobilemoneymomentum
2 billion people globally have no bank account, but 1 billion of them have a mobile phone. Markets for digital financial services are expanding worldwide.
"Enabling role of ICTs to transform smallholder farmers to entrepreneurs”. An overview of IFAD-funded ICT related activities supporting rural enterprises. Presentation at FAO Rome, 27 October 2010 by Michael Hamp, Senior Rural Finance Advisor and Head of the Financial Assets, Markets and Enterprise Development Unit of the Programme Management Department, IFAD.
This document provides a summary of the state of the mobile financial services industry for the unbanked in 2014. It finds that while mobile money services have expanded significantly in recent years and are transforming access to financial services, continued investment is needed to bring the industry to scale. Specifically, over 250 mobile money services now operate in 89 countries, but regulatory barriers remain and interoperability between services is limited. The report also examines trends in mobile insurance, savings and credit products and calls for further industry collaboration to develop digital financial ecosystems.
Reference
e-Conomy SEA is a multi-year research program launched by Google and Temasek in 2016. Bain & Company joined the program as lead research partner in 2019. The research leverages Bain analysis, Google Trends, Temasek research, industry sources and expert interviews to shed light on the Internet economy in Southeast Asia. The information included in this report is sourced as “Google & Temasek / Bain, e-Conomy SEA 2019” except from third parties specified otherwise.
Disclaimer
The information in this report is provided on an “as is” basis. This document was produced by and the opinions expressed are those of Google, Temasek, Bain and other third parties involved as of the date of writing and are subject to change. It has been prepared solely for information purposes over a limited time period to provide a perspective on the market. Projected market and financial information, analyses and conclusions contained herein should not be construed as definitive forecasts or guarantees of future performance or results. Google, Temasek, Bain or any of their affiliates or any third party involved makes no representation or warranty, either expressed or implied, as to the accuracy or completeness of the
information in the report and shall not be liable for any loss arising from the use hereof. Google does not provide market analysis or financial projections. Google internal data was not used in the development of this report.
e-Conomy SEA 2019 report (from Google and Temasek)Duy Hoang
The Internet economy in Southeast Asia has grown rapidly in recent years, surpassing $100 billion in gross merchandise value for the first time in 2019. This represents a nearly 40% increase from 2018 and more than triple the size in 2015. Powered by increasing mobile internet adoption and changing consumer behavior, sectors like e-commerce and ride hailing have seen especially strong growth, becoming integral parts of daily life for many in the region. If growth continues at its current pace, the Internet economy is projected to reach $300 billion by 2025.
The document analyzes the financing industry in Bangladesh using a PESTLE analysis. It finds that Bangladesh has low financial inclusion, with only 2.2 banking branches and 1.4 ATM booths per 100 square kilometers. Politically, inconsistent policies between ruling powers and misuse of power affect the industry. Economically, microfinancing increases rural purchasing power and mobile financing costs less than traditional channels. Socially, many people distrust banks and find opening accounts inconvenient, while mobile banking is seen as easier for money transfers. Technologically, rapid mobile growth enables the industry but also raises security and infrastructure issues. Legally, only bank-led mobile financing is approved, and transaction limits are in place. Environmentally, mobile financing
Developments in the African Digital Economy - Fola OdufuwaFola Odufuwa
Presentation made at the ITU 2018 Regional Human Capacity Building Workshop on
“Strengthening Capacities in Internet Governance in Africa” describing ways to create an enabling environment for the development of the digital economy in the African region; how legal frameworks are aiming to facilitate e-commerce and the development of related services, such as local online marketplaces and e-payment mechanisms, as well as digital financial services.
IMAP Fintech Sector Leaders share insights into the global Fintech sector.
They look at the short- and long-term effects of the COVID pandemic and which subsectors stand to lose and who ultimately stands to benefit. Sharing their thoughts on key themes disrupting the sector, including payments, digitalization, lending and mobile, they examine
how these have been impacting M&A activity and valuations.
They provide an overview of the most active players, as well as expectations for this key sector moving forward.
Financial inclusion in Africa is low compared to other regions, with only 34% of adults having a bank account. There are significant disparities within countries as well, with women, youth, and the poor being most financially excluded. Expanding access to financial services, products tailored to marginalized groups, and leveraging remittances from the African diaspora could help drive development and economic growth across the continent.
The document discusses how mobile phones are transforming Africa. It describes how mobile phones have become essential devices across the continent, improving financial inclusion and helping work around infrastructure problems. Innovations like mobile money services have disrupted banking by allowing digital financial transactions without bank accounts. Mobile phones are also transforming agriculture, healthcare, and increasing transparency in politics. Entrepreneurs have created mobile applications that help farmers access market information, verify authenticity of medicines, and monitor political violence.
Nepal has a large youth population, with 60% of people between ages 16-40. It relies heavily on remittances, which make up 30% of its GDP. There is potential to expand financial access through fintech given Nepal's growing mobile and internet usage. The country has low banking penetration, with 40% of youth unbanked, indicating an opportunity for innovative financial services. Setting up a fintech company in Nepal could tap into the large youth market and growing tourism industry by providing payment and digital finance solutions, helping to increase financial inclusion. However, regulatory hurdles and a history of political instability and corruption pose challenges to fintech growth in Nepal.
The document is a draft due diligence report on the mobile point of sale (mPOS) market in South Africa. It finds that the mPOS market is growing rapidly due to increasing smartphone adoption, simpler regulations, and a push for cashless payments. Transaction volumes are expected to grow at a CAGR of 23.5% from 2014 to 2019, while devices in circulation will grow at 32% annually. Major drivers include the ease of use for small retailers and proliferation of smartphones, while low barriers to entry and new payment technologies pose challenges. Leading mPOS providers are banks like Nedbank and Absa partnering with fintechs, as well as dedicated companies like Yoco.
Financial inclusion has become a global priority since the financial crisis. Developing nations must continue economic growth to stabilize the world. ICT can help increase financial inclusion affordably and efficiently, as seen in experiments like M-Pesa in Kenya which contributed to 10% of GDP through remittances. Strategic planning is needed to ensure ICT benefits human development and helps achieve goals like those in the Millennium Development Declaration. India is working to increase financial inclusion through initiatives like Aadhaar identification and expanding access to banks, ATMs, and mobile money.
Over the last decade, Africa has become a global leader in mobile money with the rate of smartphone adoption at twice the global scale. But what challenges is the industry facing and how can these be overcome? Our new article, sponsored by Mazars, explores.
Money remittance business philippines,philippines remittance statistics,inter...Ashish Chauhan
Ken Research Latest report on Online Remittance Philippines which covers Online Remittance Philippines,Online Bill Payment Philippines,Migration in Philippines,Bill Payment mode Philippines,Personal Remittance Philippines Statistics,Philippines Remittance Statistics,Pawnshop business growth, OFW Remittance Statistics,Online bill payment services in the Philippines,Money Transfer Operator Remittance Philippines,International Remittance Philippines,Inbound remittance Philippines,Outbound remittance Philippines,
Revenue from Digital Technologies to Fund SDGs in AfricaLyla Latif
This presentation focused on how to mobilise additional funds from digital technologied to finance development and also identifed the areas from which illicit finance is moved.
The document provides an overview of the South African mobile point of sale (mPOS) market. It finds that the mPOS market is growing rapidly due to increased smartphone adoption and a push for cashless payments. Transaction volume is expected to grow from $0.9 billion in 2014 to $21.4 billion in 2019 while the number of mPOS devices in circulation will increase from 90,000 to 360,000 in that period. Key drivers of the market include the ease of adopting mPOS for small retailers and the proliferation of smartphones. Competition in the market is also growing as major banks and new startups launch their own mPOS solutions.
Financial inclusion in Pakistan increased from 7% to 9% between 2014 and 2015. Banks remain the major contributor to financial inclusion, with 7% of adults having bank accounts. Mobile money account ownership doubled between 2014 and 2015 to 1% as mobile money and non-bank financial institutions also contribute to growing financial inclusion. Awareness of mobile money remains high but usage lags, with only 13% of those aware having used mobile money. Literacy and mobile phone skills remain significant barriers to greater adoption of digital financial services.
Building a digital Nigeria is an Economist Intelligence Unit report. The findings are based on desk research, interviews and fieldwork in Nigeria conducted by The Economist Intelligence Unit. The research was sponsored by Accenture.
IMTFI Blog Post -- Mobile Money Potential in the GILA RegionJoel Patenaude
This document discusses the potential for mobile money in the Greater Ibadan Lagos Accra (GILA) region of West Africa. It summarizes research conducted in the region which found that cash remains the dominant method for cross-border transactions, though bank cards are also increasingly used. Many traders in the region own smartphones, indicating an openness to digital financial services. The document proposes pilots to test extending mobile money agents across borders, facilitating cross-border airtime markets, addressing foreign exchange, and using mobile phones for identity solutions to begin offering cross-border mobile money services in the region.
Measuring financial inclusion the global findex asli demirguc kunt leora klapperDr Lendy Spires
The Global Findex survey collects comparable cross-country data on financial inclusion by surveying individuals around the world to measure the use of formal and informal financial services. It aims to identify groups with the greatest barriers to access in order to inform policies to expand access. Funded through 2020, the 2011 survey added financial services questions to the Gallup World Poll. Key findings include that over 2.5 billion adults lack bank accounts, with the poor, women, youth and rural residents least likely to have one. Mobile money has increased access in some areas like Kenya. The data is used by policymakers and organizations to benchmark progress on financial inclusion.
In 2015, the CGAP-funded Financial inclusion Insights Survey was conducted in Ghana by InterMedia to analyze the trends and usage of mobile money in the country. This report shares data from the survey and highlights opportunities for growth and expansion.
for more information, visit www.cgap.org/mobilemoneymomentum
2 billion people globally have no bank account, but 1 billion of them have a mobile phone. Markets for digital financial services are expanding worldwide.
"Enabling role of ICTs to transform smallholder farmers to entrepreneurs”. An overview of IFAD-funded ICT related activities supporting rural enterprises. Presentation at FAO Rome, 27 October 2010 by Michael Hamp, Senior Rural Finance Advisor and Head of the Financial Assets, Markets and Enterprise Development Unit of the Programme Management Department, IFAD.
This document provides a summary of the state of the mobile financial services industry for the unbanked in 2014. It finds that while mobile money services have expanded significantly in recent years and are transforming access to financial services, continued investment is needed to bring the industry to scale. Specifically, over 250 mobile money services now operate in 89 countries, but regulatory barriers remain and interoperability between services is limited. The report also examines trends in mobile insurance, savings and credit products and calls for further industry collaboration to develop digital financial ecosystems.
Mobile payment has grown rapidly in West Africa in recent years, enabled by increasing mobile phone adoption. However, several challenges remain:
1. Territorial coverage of mobile networks and agent networks remains inadequate, especially in rural areas.
2. Agent networks provide an important mode of distribution but remain limited in scale and sustainability.
3. Lack of interoperability between mobile operators limits the scope of mobile payment services.
4. The cost of implementing innovative solutions like online bill payment and government services is prohibitive for many West African governments.
5. Regulation of mobile financial services remains imprecise, which could limit further growth and innovation in the sector. Overcoming these challenges will be important to realize
This document discusses mobile payments security in Central and South America and its impact on profits, reputation, and customer loyalty. It notes that Brazil, Mexico, and Colombia lead the region in mobile adoption. While smartphones are rising, basic USSD-based services still play an important role for the unbanked. Case studies highlight successful P2P payments in Paraguay, Colombia's DaviPlata digital wallet platform, and growing mPOS usage. However, the document notes security remains a key issue for the financial industry as mobile payments rise in the region.
This document summarizes a presentation on leveling the playing field for mobile money and digital payments in Tanzania. The presentation discusses the goal of financial inclusion, identifies barriers like costs and lack of consumer awareness, and recommends multi-stakeholder engagement and accelerating interoperability to increase inclusion. Currently, 14% of Tanzanians use formal bank products while 26% remain financially excluded, compared to other countries in the region. The presentation calls for public-private partnerships to remove barriers and harness technology to connect more people financially.
This document provides an overview and analysis of instant payment systems (IPS) in Africa. It begins with an introduction by the CEO of AfricaNenda highlighting the importance of digital payments for financial inclusion in Africa. The document then covers the IPS landscape in Africa, evolving digital payment customer behavior, barriers to and opportunities for IPS inclusivity, and future perspectives on IPS development and trends. It includes annexes with case studies of four IPS schemes, a list of consulted stakeholders, landscaping data tables, and details on the consumer research methodology. The overall aim is to inform stakeholders about IPS in Africa and support evidence-based policymaking and investment decisions regarding digital financial services on the continent.
This document provides an overview and introduction to the State of Instant and Inclusive Payment Systems in Africa 2022 report. It discusses that the report aims to inform public and private sector players about developments in instant payment systems in Africa, including an assessment of inclusivity. It notes that currently most systems are geared toward limited financial institutions and transaction values. The introduction emphasizes that digital financial inclusion is key to supporting Africa's development, and that collaboration across sectors is needed to build inclusive payment systems that meet people's needs.
1. An assessment was conducted of an agent banking solution deployed by Urwego Opportunity Bank in Rwanda.
2. The assessment examined key areas such as products, business case, agent network, marketing, risk mitigation, and technology.
3. Several recommendations were provided to improve the solution based on the assessment, such as offering liquidity management facilities to agents, strengthening fraud detection, and engaging in rebranding of strategic agent outlets.
This is a presentation by Paschal Anosike, Director, Centre for African Entrepreneurship and Leadership (CAEL), University of Wolverhampton, UK, at the 3rd Annual East Africa Finance Summit
FII Ghana 2015: The state of financial inclusion and mobile financial servicesPeter Zetterli
This presentation gives an overview of the findings from CGAP's nationally representative survey of financial inclusion in Ghana 2015, with an emphasis on the role played by mobile financial services.
The majority of the world population is not covered by the mainstream financial sector. As such, mobile money services are seen as a cost effective and efficient way of increasing financial inclusion. However, there remains some factors that impede the development of mobile money services. Therefore, this study sought to analyse these factors with a view to identifying strategies that can be used to accelerate the development of mobile money services.
The document discusses drivers of inactivity in mobile banking and digital financial services in Côte d'Ivoire. It finds that nearly half of customers have irregular incomes and do not need to consistently use their accounts. Over a quarter are unaware of benefits compared to cash. Over 15% cite costs being too high as mobile money tariffs are higher in Côte d'Ivoire than other African countries. The document recommends reducing costs, making services more relevant with savings/loans, and improving agent distribution and education on benefits.
This document discusses strategies for Zimbabwe Posts to effectively manage liquidity and float for multiple digital financial service providers. It outlines Zimbabwe Posts' role in digital financial services including as an agent for international money transfers and mobile payments. Challenges are presented around funding floats for multiple providers and managing liquidity in cash-out areas. Solutions proposed include a shared float managed by the central bank, infrastructure sharing, and addressing high service costs. The conclusion emphasizes the need for cooperation between stakeholders to leverage new technologies for socioeconomic development.
FinTech outlook for 2017 report discussing trends, opportunities and challengesMEDICI admin
The report is intended for readers who want to better understand the dramatic changes that have begun to take place—and that are accelerating—in the global FinTech landscape. The payments industry, which is one of the focus areas of this report, has never been more exciting.
The report starts with the current state of FinTech and then provides an analysis of major emerging technologies and market forces that are shaping the FinTech market for 2017. It discusses the major opportunities and challenges faced by incumbents as well as FinTech startups. The report also provides a brief on the geographic split of payments volume, revenue and how they are expected to shift gradually by 2024.
The document discusses a service called 3-2-1 that provides public information to mobile subscribers in Madagascar via their mobile phones. It aims to understand user behavior to improve the service. Key points:
- 3-2-1 has reached over 3 million subscribers since 2010 but wants to demonstrate its value as it expands internationally.
- The service allows unlimited free access to topics like health, gender and agriculture through SMS, USSD and an IVR system.
- While the user base is growing, active usage rates are declining. Many users are very new, suggesting issues with repeated usage and engagement.
- Understanding user journeys, willingness to pay, and what drives effective content can help address
Rwanda has made impressive progress towards financial inclusion and moving to a cashless economy. 89% of adults are financially included, with most using formal non-bank services like mobile money. Mobile money usage and agents have grown exponentially, while bank account ownership and ATM transactions have stagnated. The government is implementing initiatives to achieve 90% financial inclusion by 2020, including expanding access points, promoting digital payments through RSwitch, and providing government services digitally via the Irembo platform. Interoperability across banks, mobile money operators, SACCOs and MFIs is key to building an inclusive cashless payment system as envisioned in the national payment strategy.
What is the future of the Telecommunications industry in AfricaDavid Graham
Deloitte recently completed an in-depth analysis of the telecommunications market in Africa, its trends, and the drivers of it. We are convinced that there will be consolidation in the telecommunications sector and inevitably more inbound investment as the market opens up and the economic returns improve.
Similar to Summary_GSMA_State of the Industry 2015 (20)
2. CURRENT STATUS, TRENDS, INTRODUCTION TO REPORT
Four trends that will impact the industry’s evolution:
➤ With an increasingly active customer base, further development of the mobile money ecosystem essential to diversify customer usage
➤ Operational foundations and agent management remain critical to digitise cash
➤ Increased investment will be key for providers
➤ Need to focus on excluded segments of women and rural consumers
Of the 271, 58%
are MNO led
Of the 93
countries, 51
have enabling
regulatory
framework
In total 134 million
accounts were
active on a 90-day
basis (active rate if
32.6%). Accounts
with balance
reached 46% in
Jun 2015
The report is based on data collected though GSMA’s annual Global Adoption Survey on Mobile Financial Services. In 2015, 107 mobile money
providers from 67 countries participated in this survey. The report has the following 5 sections:
1. Availability of mobile money services globally
2. Access to mobile money services, including both physical access through agent networks and
technical access through the mobile interface
3. Adoption and customer activity levels, particularly how service providers drive scale
4. Usage and how the industry is focusing on usage that builds the ecosystem
5. Revenues and investment
4. GLOBAL VIEW
➤ Mobile money services are live in 64% of developing countries (86 of 135 countries). It is most widespread in low-income
economies (81% markets), compared to lower and upper middle income economies (71% and 47% markets respectively).
➤ In 2015, mobile money was launched in 4 new markets: Albania and Peru (upper-middle-income), Myanmar (lower-middle-
income), and Seychelles.
➤ Launch of new services is slowing down with 13 new services in 2015, compared to 30 in 2014 and 58 in 2013.
Market types in Latin America & the Caribbean
Type 1 Markets: Difficult for financial service providers to reach the underserved populations through traditional banking models,
making them ideal for mobile money services offered by mobile operators (e.g. Bolivia, El Salvador, Guatemala, Honduras, and Paraguay)
Type 2 Markets: Banks are deeply rooted in the economy and strong contenders for mobile money. Mobile operators and retailers have
high penetration levels and strong customer relationships in their core business. Type II markets tend to be more integrated with existing
financial and retail infrastructure, often including access to national clearing and settlement systems (e.g. Brazil, Mexico and Panama)
Regional growth:
➤ Sub-Saharan Africa continues to account for the majority of
live mobile money services (52%)
➤ However, more than half of new services launched in 2015
were outside this region, primarily in Latin America & the
Caribbean.
➤ New mobile money services are expected to grow by as
much as 50% in Europe & Central Asia as well as the
Middle East & North Africa.
5. OTHER FINDINGS ON AVAILABILITY
➤ Interoperability and industry collaboration continue to gather stream as competition increases
➤ In 2015, MNOs interconnected their services in three new markets— Madagascar, Rwanda, and Thailand.
➤ Providers in the Philippines are also preparing to launch interoperability in 2016.
➤ Mobile money services in Bolivia, Peru and Mexico—which are already interoperable with the banking sector— are
on their way to full account-to-account (A2A) interoperability in mobile money.
➤ Cross-border mobile money remittances expand availability
➤ As of the end of December, the GSMA tracked at least 29 cross-
border mobile money remittance corridors connecting 19
countries.
➤ Majority of initiatives in West Africa (well positioned as
member states of WAEMU are socio-economically
integrated and adoption of mobile money has been rapid)
➤ Initiatives in Philippines and Singapore and Qatar are also
live
➤ A range of use cases is driving customer uptake (regular/
seasonal remittances from economic migrants, cross-border
trade)
➤ Regulatory view: Critical for regulators to provide level playing field for mobile money services allowing both banks and non-banks
➤ MNOs continue to play a leading role (69% of services launched in 2015 are operationally run by MNOs, and 58% of all live services are
MNO-led)
➤ As of December 2015, an enabling regulatory approach12
was present in 51 of the 93 countries where mobile money is available, an increase
from 2014 (where 47 of 89 countries had enabling regulation). In 2015 there were changes to regulation in 10 countries (Colombia, El
Salvador, Ghana, Guinea, Kyrgyzstan, Morocco, Mozambique, Nigeria, Sierra Leone, and Tanzania) and within the WAEMU.
7. KEY FINDINGS (1/2)
This section analyses the two channels customers rely on to access mobile money.
1. Network of physical access points where customers can typically deposit cash into, or take cash
out of, their mobile money account. These access points are primarily agents.
2. Technical access channel—the interface customers use to initiate transfers and payments directly on their mobile handsets.
➤ Registered agents continue to grow, but active agents remain elusive for
many
➤ Growth rate for registered agents has decreased - In December 2015, total
3.2 million registered agents globally, a 25.2% increase year-on-year but a
noticeable decline from the 53.1% growth in 2014
➤ Global average active rate was 51.4%, down slightly from 52.1% in 2014
➤ A natural lag in more nascent regions, such as the Middle East &
North Africa
➤ In other regions, such as Southern Africa and Latin America & the
Caribbean, agent activation is challenging due to restrictive regulatory
environment, a lack of commercial investment, or a particularly
complex market context
➤ In some cases, mobile money providers partner with large retail
chains, which adds significant numbers of agents to their registered
base before many of them become trained and activated.
➤ In 2015, growth across West Africa was dramatic, with Burkina Faso, Mali, Ghana, and Côte d’Ivoire all contributing to the substantive regional
turnaround. In 2015, year-on-year growth in active agents was 60.1%, which was twice the growth rate of any other region.
➤ In June 2015, registered agents represented 90.5% of mobile money’s physical cash-in and cash- out global footprint, whereas ATMs represent 7.8%
and banks represent 1.7%.
➤ For the majority of providers, the challenge of agent activation will persist until global active rates are closer to what we see in East Africa (where
nearly 70% of the network was active in December 2015) or until there is a substantive and scalable alternative to cash-in and cash-out transactions.
8. KEY FINDINGS (2/2)
➤ Fresh approaches to drive activation by re-examining who and where to
recruit
➤ Female agents: Has proved useful for closing the gender gap and
removing trust issues in the agent point. In 2015, 18 providers reported
the gender composition of their agent base and based on responses, an
average of 23.9% were women. While still a minority in the industry,
they represented at least one provider from each region, with one-third
reporting more than a million active customers.
➤ Rural areas: Providers are also re-examining where to build their
networks, and are exploring the opportunities and challenges of
expanding into rural areas. In 2015, 36 providers reported knowing the
percentage of rural agents in their network: 45.8% on average.
➤ Smartphones and internet access could enhance access to mobile money, but few have successfully cracked this opportunity
➤ Cost of smartphones has reduced and there is greater access to mobile broadband
➤ In 2015, few markets with a high percentage of unbanked adults demonstrated strong smartphone or mobile broadband
penetration. This dynamic will change by 2020, however, as more markets with a large unbanked population will have access to
mobile broadband, or at least a smartphone and apps will become a standard
➤ However, right now the usage of apps is low. According to the 2015 survey results, apps were the second most common channel
o ered by mobile money service providers after USSD, but only eight providers reported having more than 1,000 active accounts
(90 days) and more than 15% of total transaction volumes through the app.
➤ Moving forward, apps will be a powerful mechanism to interact with a growing and changing customer base. In this context, good
user experience (UX) and app security are the cornerstones to unlock the potential of apps.
Key Findings from Mali and Chad:
➤ Prioritising growth by region has a higher return
on investment than organic growth.
➤ Focus investment on fewer and more specific
rural profiles (agents are older with established
businesses
➤ Effective master agents can bridge the liquidity
gap:
➤ Evaluate the role of provider collaboration in the
rural context (sharing infrastructure costs e.g. in
Chad, the rural agent offered Airtel Money and
Tigo Cash)
10. KEY FINDINGS (1/2)
➤ New regions are on a rise
➤ South Asia and Sub-Saharan Africa showed the strongest growth in adoption,
accounting for 85% of all new accounts opened in 2015.
➤ In Sub-Saharan Africa, the majority of growth is coming from outside the mature
mobile money markets of East Africa—63% of all accounts opened in Sub-Saharan
Africa in 2015 were in Middle, West, and Southern Africa.
➤ In markets where mobile money is available, 10% of mobile connections are now linked
to a mobile money account, compared to 8% as of December 2014.
➤ The most impressive growth occurred in West Africa, where the percentage of mobile
connections linked to a mobile money account increased by nearly six percentage points
in 2015 to reach 19.6%.
➤ Increasing trust among active users
➤ Thirty services have more than one million 90-day active accounts and five services have more than have million.
➤ Percentage of accounts with positive balance increased to 46% in June 2015 (highest level of growth in East Asia and Pacific,
and majority of accounts with positive balance is in South Asia at 55.6%)
➤ The average balance held in accounts has also increased. Seven of the 38 survey respondents who reported data on account
balance saw the average balance increase by over US$ 10 between September 2014 and June 2015. Four of them are in Asia and
o er services delivered primarily over-the-counter, suggesting that storage of value could be part of a compelling value
proposition to encourage customers to open mobile money accounts.
➤ Reaching women and rural customers
➤ More mobile money providers are actively tracking data on the gender and rural/urban split of their customer base
➤ Female customers: 39.2% of respondents track customer gender; 37% of their customers are female (enabling policies and regulations are
required as women are significantly less likely to have necessary KYC documentation)
➤ Rural customers: 40.2% of respondents track customer urban/rural split; 47.3% of their customers are in rural areas
11. KEY FINDINGS (2/2)
➤ Over the counter (OTC) and unregistered users: High numbers abut slower growth
➤ At least 37.4 million unregistered customers performed an OTC mobile money
transaction in June 2015 (high but deceleration in the growth)
➤ The majority of the services (45%) are based in South Asia and 28% are based in
Sub-Saharan Africa.
➤ OTC represents 14.4% of the total global value of transactions. P2P transfers
remain the predominant use case, bill payments also a common OTC use case
(57.5% by value conducted via OTC in June 2015).
➤ Growth rate of OTC is slower relative to the growth of account adoption.
➤ This is a promising sign, suggesting that the increased focus of providers
to migrate OTC customers to use wallets is bearing fruit.
➤ South Asia, home to especially high OTC usage, the 19% growth (year-
on-year) of OTC is dwarfed by the 46.6% growth in registered accounts.
➤ In Pakistan for example, both regulatory and commercial developments
have helped to accelerate account adoption.
Formal OTC transactions as a hook
➤ Rapid growth of formal OTC transactions
had seemed a powerful hook to introduce
customers to a new kind of transactional
service. E.g. Pakistan
➤ Evidence shows OTC as an entry point for
accounts in Bangladesh, where 56% of all
bKash account users reported making a
transaction before signing up for an
account.
Heavy reliance on agents; “agent is the
king”
➤ Unlike other competitive markets where
price promotions are a relatively common
strategy to on-board customers, providers
in Pakistan are locked into a battle where
Formal OTC: Occurs when the provider deliberately chooses to o er and track OTC services,
such as Easypaisa in Pakistan and Zoona in Zambia.
Informal OTC: Can develop organically, often despite deliberate commercial and regulatory
attempts to limit it (such as bKash in Bangladesh, which is struggling to limit the market’s
reliance on OTC transaction). Direct deposits are a subset of informal OTC transaction.
13. KEY FINDINGS (1/3)
➤ Growing usage suggests increasing trust in service
➤ While the overall growth in volumes is 27.3%, the average
number of transactions per customer has also increased. In
2015, the average customer conducted 11.2 transactions per
month (up from 10.3 in 2014).
➤ Mobile money is also growing significantly faster than more
traditional payment players. For example, the aggregate growth
by value was 31.5% while MasterCard reported 14% growth.
➤ Focus for 2016 should be to build ecosystem
➤ The industry remains dominated by person-to-person (P2P) transfers
and airtime top-ups.
➤ In December 2015, the value of P2P transfers represents 71.5% of the
total mix, and airtime top-ups represent 66% of the total volume of
transactions (but only 3.6% of the value).
➤ An unprecedented number of providers have begun to invest in new
partnership models and fresh approaches to diversify beyond P2P transfer
volumes and values.
1. Bulk disbursements
2. Merchant payments
3. Interoperability
4. Cross border remittance
5. Transport payments
14. KEY FINDINGS (2/3)
1. Bulk disbursements
➤ Government payments (G2P) are leading the way: 64.7% of bulk
disbursements were G2P, followed by business-to-person (B2P) at 32.1%
and donor-to-person (D2P) at 3.2%.
➤ G2P disbursements are most common in South Asia and Latin America &
the Caribbean. The highest share of total G2P disbursement is from South
Asia at 70.1% followed by Latin America & the Caribbean at 29.3%.
➤ Although bulk disbursements are an efficient way for providers to inject
money into the ecosystem, the vast majority of these are cashed out.
➤ Providers should continue to create a compelling value proposition for
other more frequent transactional services, including merchant payments.
2. Merchant Payments
➤ Merchant payments represent 1.9% of total mobile money transaction volumes
and 4.1% of total mobile money transaction values.
➤ As e-commerce continues to grow globally, the intersection between mobile
money and e-commerce is garnering more interest.
➤ However, interviews with large e-commerce players reveal that ease of
integration with mobile money providers is a major barrier to accepting mobile
money as a primary payment mechanism.
➤ As e-commerce continues to grow, providers need to adapt quickly or face
more competition from innovative players that could quickly disrupt cash-on-
delivery. This is already happening in China and India with Alipay, WeChat,
and Paytm.
3. Interoperability
➤ For deployments with functionality already in place, bank-to-mobile (B2M)
transactions represent 4.5% of the total value entering the ecosystem.
➤ The number of banks connected to mobile money schemes increased by 66%
between 2013 and 2015, growing to more than 520 banks in 2015 (for 120
deployments).
➤ It appears that banked customers transferring money from bank accounts to
mobile money accounts are using it primarily for cashing-out at agents.
➤ Mobile money is performing an important and valued role in allowing banked
mobile money customers access to their funds; and banked mobile money
customers are also sending money via P2P transfers to previously unbanked
mobile money customers, closing the gap between these two worlds.
4. A2A Interoperability
During 2015, A2A interoperability increased to a total of 7 markets. A few trends:
➤ Technical solutions and partners vary across markets (GSMA review of Tanzania
and Pakistan’s inter-bank switches illustrates that the governance model,
technical readiness, and commercial model of the existing inter-bank
infrastructure needs to be addressed to become suitable for the mobile money
industry
➤ Commercial models also vary across markets (Customer transaction fees need to
remain as low as possible, ideally the same as for on-net transactions; one
commercial model that has emerged is where operators compensate each other
for e-money entering their system)
➤ Customer transactions need to be real-time.
15. KEY FINDINGS (3/3)
5. Cross border remittances
➤ For mobile money services offering International Money Transfer (IMT), the rate
of growth of cross- border remittances 51.8% was the highest, by volume in 2015.
➤ Mobile money enables greater reach, lowers transaction costs, and encourages
regional trade and economic growth.
➤ Despite this, the 10 most expensive remittance corridors are all intra-African
giving rise to informal systems. Africans pay the highest transaction fees in the
world: 12.4% versus a global average of 8.6%. A 5% reduction in fees could pass
on an additional US$ 4 billion to Africans.
➤ However, there are challenges - Complex regulations and risk management are
difficult to negotiate; customer due diligence, account limits, exchange rate
exposure, and additional licensing costs
5. Transport system
➤ Transport payments are one transaction type with the potential to drive daily usage, but it
presents unique constraints.
➤ In 2015, mobile money providers tested transport as a means to build an ecosystem, both
with and without a direct connection to a mobile money account. Examples:
➤ Philippines - AF Payments Incorporated (AFPI) was launched in 2014 as a joint-
venture between the two leading mobile operators, Globe and Smart and their
relative owning groups, the Ayala Group and First Paci c Group,43
to deliver a uni ed
contactless Automated Fare Collection System (AFCS) for the rail system in Manila
➤ Nicaragua - MPeso, a non-MNO led mobile money deployment, has developed
TUC, a contactless NFC card that allows people to pay for bus journeys in the
capital city of Managua. The TUC card is directly connected to MPeso’s mobile
money account and, while customers can also pay in cash on some bus journeys, its
uptake has been very strong with over 90% bus rides paid with the card. This has
translated in over 800,000 transactions processed per day.
17. KEY FINDINGS (1/2)
➤ Direct revenues growing steadily (also as percentage of total company
revenues)
➤ At least 15 providers report earning revenues of more than US$ 1 million
during the month of June 2015, compared to 11 providers in June 2014.
➤ Revenues generated by mobile money grew by 40.3% (CAGR) in the year
leading up to June 2015,
➤ Twelve respondents more than doubled their revenues between
September 2014 and June 2015. More than half (58.3%) of these
deployments were in West and Middle Africa, where mobile money
adoption and usage is rapidly gaining traction.
➤ Mobile money is growing steadily as a percentage of total company
revenues. Also, it is becoming more significant than VAS offerings to a
growing number of MNOs.
➤ Sources off direct revenue - Majority is from customer fees, but in Latin
America & Caribbean and Asia a greater proportion of respondents
report majority of revenues from business fees (their product mix shows
larger proportion of bill payments, merchant payments, bulk
disbursements, and international remittances).
➤ M-PESA in Kenya now contributes 20% of Safaricom’s revenues, up from 19.6% in September 2014. M-PESA revenues grew by 22.8% to US$
320 million. This growth was driven by a 14% increase in 30-day active M-PESA customers to 13.9 million, as well as an increase in the average
number of transactions per customer.4
➤ Millicom Group reports that total revenue from mobile financial services across nine markets in Sub-Saharan Africa and Latin America & the
Caribbean increased by 23.1% between Q3 2014 and Q3 2015. MFS revenue in Tanzania was up 30.4% and Paraguay up 6.9%.49 In Africa, MFS
contributed 9% of total company revenues in Q3 2015.
18. KEY FINDINGS (2/2)
➤ Indirect revenues
➤ Indirect sources include - churn reduction, uplifts in average revenue per user on the GSM business, or savings
on airtime distribution.
➤ Selling airtime via mobile money can result in large cost savings for mobile network operators, since they can
avoid commissions to traditional airtime distributors. Example: In its 2015 annual report, Safaricom Kenya
reported selling 38% of total airtime via M-PESA.51
For the remaining 62% of its airtime sales, Safaricom spent
just over US$ 100 million in commissions paid to airtime distributors. Without M-PESA, we estimate
Safaricom’s total bill to traditional airtime distributors would have been nearly US$ 64 million higher in
FY2014.
➤ Investments in mobile money
➤ Investment in mobile money tends be
driven by operational expenditures,
including agent commission costs,
marketing, and personnel expenditures.
Agent commissions in particular
represent a large cost category for
providers.
➤ In 2015, the top 10 mobile money
providers (ranked by 90-day active
accounts) paid out on average 54.4% of
revenues as agent commissions.