Sub-Saharan Africa (SSA) is leading the world mobile money market with more than half of its innovations birthed in the region, latest GSMA data has said.
The latest ‘State of Mobile Money in Sub-Saharan Africa’ presentation, made available by the GSMA in Tanzania this week, reveals that the number of innovative mobile money products in the region had reached 140 across 39 countries at the end of last year, accounting for more than half of the 277 mobile money deployments worldwide.
The new study points to a decade of growth in mobile money services in the region following the launch of M-Pesa in Kenya in 2007, which was followed by similar developments throughout sub-Saharan African.
The research further noted that there are now seven markets in the region where more than 40 percent of adults are active mobile money users: Gabon, Ghana, Kenya, Namibia, Tanzania, Uganda and Zimbabwe.
The latest data highlights show the mobile money market in the region has evolved from primarily being used to top-up airtime and make person-to-person (P2P) transfers to becoming a platform that enables additional financial services, including bill payments, merchant payments, and international remittances
The volume of these new types of ‘ecosystem payments’ almost quadrupled between 2014 and 2016 and now accounts for about 17 per cent of all mobile money transactions, driven by a significant rise in the number of mobile-based bill payments.
There were 277 million registered mobile money accounts across Sub-Saharan Africa at the end of 2016, plus 1.5 million registered agents. Mobile money users have historically been concentrated in East Africa, home to major mobile money markets such as Kenya, Tanzania and Uganda.
Notwithstanding, the latest data suggests that user growth is now being driven by other markets in the region, notably West Africa. Almost 29 percent of active mobile money accounts in Sub-Saharan Africa are now based in West Africa, compared to just eight percent five years ago.