The mobile payments industry is forecasted to have high growth in Africa. According to Pyramid Research, the African mobile money transfers are expected to exceed a total value of $200 billion in 2015, accounting for about eight percent of the continent’s GDP.
Kenya is likely to be at the forefront of this growth due to an already high market penetration in mobile payments. Most of Safaricom’s registered customers are Kenyan accounting for 54 percent of adult population and 31 percent of the entire population of Kenya. Currently the total monthly P2P transfers is US $415 million, and this is equal to roughly 17 percent of Kenya’s GDP. In fact the market power of most of the African mobile payment companies is so large that the World Bank warned of an increased threat in competition in the global payments industry due to an emergence of Africa’s mobile payment giants.
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The opportunity for mobile commerce is immense in Kenya. According to a report by American Banker, Farmers and rural traders in Kenya now have access to connecting with urban sellers, and price their commodities via their mobile phones, which gives them several economic advantages. According to Forbes, the success of M-Pesa was due to limited “technology integration and infrastructure” in the nation, and M-Pesa was seen as a secure and convenient way to pay for goods and services, which compensated the underdeveloped banking system.
American Banker; 3/7/2012, Vol. 177 Issue 36, p8-8, 3/5p
Source: (Tracking the Economy)
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