Mobile Money Accounts Grew by 13% to 1.2 Billion – GSMA

Bukola Olanrewaju March 24, 2021 TECHNOLOGY Leave a comment

…As Transactions Value Increases by 65% $12.7 Billion in 2020

The number of Mobile Money registered accounts grew by 13 percent globally in 2020 to more than 1.2 billion – double the forecast Global System for Mobile Communications ( GSMA ) reports.

The fastest growth was in markets where governments provided significant pandemic relief to their citizens, the report said.

This year’s report found that across markets women are still 33 percent less likely than men to have a mobile money account, said John Giusti, chief regulatory officer of GSMA.

For the first time, more than $1 billion was sent and received in the form of remittances globally every month via mobile money. The total value of mobile money transactions increased 65 percent to $12.7 billion in 2020.

Also Read:

The ratio of digital to cash-based transactions has increased by nearly 50 per cent over the past 3 years. This figure shows how every year digital transactions are adopted by more and more people as part of their daily life.

Mobile Money providers depend mainly on transactional revenues to sustain their business. Regulators are strongly encouraged to work closely with the industry to ensure sustainability going forward, the telecom industry body said.

ALSO READ: Crypto Trading Activities Not Ban in Nigeria – CBN Clears Air

Additionally, as demand rose for non-physical payments, some regulators classified mobile money agents and their supply chains as essential services. Over 50 per cent of mobile money agents were continuously active throughout the pandemic, which was crucial for service continuity and maintaining liquidity.

While some of the regulatory reforms made in response to the pandemic have been positive for customers and providers, the implementation and extension of fee waivers has had a negative impact on mobile money providers’ core revenue stream. Mobile Money providers depend mainly on transactional revenues to sustain their business. Regulators are strongly encouraged to work closely with the industry to ensure sustainability going forward.

As the mobile phone communication services industry grow over the years, it has provided a host of employment opportunities across Africa through its range of services such as mobile money services, which involve the electronic receipt, transfer, and storage of money.