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Africa accounted for 70% of the world’s US$1 trillion mobile money value in 2021. The value of Africa’s mobile money transactions edged up 39% to US$701.4 billion in 2021 from $495 billion in 2020, according to GSMA’s figures
Africa accounted for 70% of the world’s US$1 trillion mobile money value in 2021. The value of Africa’s mobile money transactions edged up 39% to US$701.4 billion in 2021 from $495 billion in 2020, according to GSMA’s figures.
In 2022, it is estimated to have grown at 22% year on year to touch US $1.26 trillion. Importantly, US $836 billion of that was processed in Africa. The number of people opting for mobile money transactions jumped to 781 million, according to a new study by GSMA.
GSMA argues that mobile payments not only help people with their day-to-day needs but also have a lasting socio-economic impact. For example, partnerships between mobile money providers and pay-as-you-go solar dealers have made asset financing for solar home systems, smartphones, and clean cooking stoves possible for previously unbanked, low-income consumers.
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The main drivers of mobile money in Africa are the wider use of smartphones and as a result of the pandemic. During the pandemic days, people preferred to use mobile money to avoid personal contacts, which later institutionalized the mode of transaction. Higher rates charged by banking institutions also influenced people’s preference for mobile money, which is easy, less costly, and speedy. Africa, having a large number of people working in other countries, especially in the Middle East and Europe, resorted to smartphone transactions.
