A new study conducted by Ericsson ConsumerLab reveals that consumers in Ghana, South Africa, and Tanzania like the convenience of accessing money everywhere and at any time, regardless of service hours. The use of mobile payments services for person-to-person transfer is also extremely popular. In Tanzania, for example, 38 percent of subscribers send money person-to-person over the mobile phone.
The report has several key findings, but six in particular stand out:
1. Consumers in these three African countries are constantly looking for new ways to improve their personal budgets;
2. The speed and convenience of m-commerce points to great potential in the market;
3. Current behaviors and social structures indicate that the use of mobile payment services will expand;
4. Consumers need more information about the functionality and security of m-commerce transactions;
5. M-commerce players should take special notice of women in sub-Saharan Africa – they are responsible for household finances;
6. People who use m-commerce keep little separation between private and business accounts;
To the overwhelming majority of consumers who participate in this research project in all three countries, their go-to method of payment is cash, and even those keeping their cash in the bank withdraw money to pay for goods and services. Bank cards are used primarily for ATM withdrawals.
The study concludes that given how much South African consumers appreciate the convenience of accessing money everywhere and at any time, there is great opportunity to increase usage of mobile money, particularly in the area of payments, salary payments and savings. In addition, merchants’ usage of m-money is crucial because the prevalence of people running multiple enterprises, possibly combining paid employment with side businesses, is extremely lucrative.
M-commerce Services Used Today
The entire report can be read here.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More