Berg Insight predicts that by 2017 the number of active mobile money users in emerging markets will grow from 61 million (in 2011) to 381 million in 2017. This represents a 36% compound annual growth rate, which could bring the value of mobile money transactions to $395 billion in five years time. This significant growth is motivated by the expansion of formal financial services through mobile channels to traditionally-unbanked populations. The research indicates that mobile phones will also be the primary self-service banking channel for the majority of those who are already using banks. Last week we spoke we spoke evolution of payments in the African continent, particularly mobile wallet services such as M-Pesa and Eazy Money.
“The industry is in a very exciting phase right now. Mobile money has not only taken off in Kenya – we’re seeing exponential growth in Tanzania, Uganda and several other countries as well”, said Lars Kurkinen, Telecom Analyst, Berg Insight. He adds that a number of services targeting the unbanked have been launched in several of the world’s largest countries such as Bangladesh, Pakistan, India, Nigeria, Mexico and Argentina. In some countries mobile money services have already matured to the extent that significant business opportunities emerge for companies from adjacent industries, such as insurance providers and merchant acquirers. “Mobile money is reshaping the market for products such as microinsurance, and will drive uptake of electronic payments for goods and services in many emerging economies”, Mr. Kurkinen concludes.
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