Mobile money services in West Africa have grown significantly over the past decade, with registered accounts doubling, according to the 2024 'State of the Industry Report on Mobile Money' by the GSMA. In 2023, global money transactions increased by 14% year-over-year, totaling USD 2.7 million per minute. The GSMA Mobile Money Programme, supported by the Bill and Melinda Gates Foundation, aims to improve mobile money ecosystems for underserved populations.
The 2024 report shows a 23% increase in transaction volumes, reaching 85 billion annually. Countries with mobile money services have seen a USD 600 billion increase in GDP compared to those without, which is equivalent to a 1.5% increase in GDP. While transaction value and volume have increased, the growth rates have slowed compared to 2022, indicating that mobile money is being used more frequently for smaller transactions.
Promoting Financial Inclusion and Digital Access
Mobile money is driving socioeconomic impact by promoting financial inclusion and digital access, contributing to 15 out of 17 United Nations' Sustainable Development Goals. As the market matures, more providers are offering additional financial products like credit, savings, and insurance. Credit emerges as the most favored supplementary service, experiencing a notable 73% surge in the array of credit products offered year-on-year.
The expansion of use cases is empowering underserved populations, including women and rural communities, to save money through mobile accounts. The number of unique female customers saving via mobile money has increased by 98% between September 2022 and June 2023. Business adoption of mobile money has also grown, with average revenue per user increasing by over 40%.
In 2023, there were 1.75 billion registered mobile money accounts globally, a 12% increase from 2022. Sub-Saharan Africa has seen significant growth, with registered accounts increasing to 47% in 2023. West Africa, particularly Nigeria, Ghana, and Senegal, have become leaders in mobile money adoption, with a 100% increase in registered accounts from 2013 to 2023.
Barriers to Accessing Mobile Money
Despite the progress, barriers to accessing mobile money remain, including low mobile ownership, digital skills, and trust levels. An enabling regulatory environment is crucial for boosting financial inclusion and mobile money uptake. Taxation poses a significant challenge for numerous mobile money services, with certain countries witnessing adverse outcomes resulting from taxing mobile money transactions.
Ashley Olson Onyango, Head of Financial Inclusion & AgriTech at GSMA, has emphasized the transformative potential of mobile money in driving financial inclusion and sustainable development. To ensure mobile money remains safe, accessible, and affordable, governments and regulators need to collaborate with financial service providers to launch financial literacy programs that empower underserved populations and improve their financial decision-making.
