Article Summary
- Nigeria sees a 41% increase in registered agents for mobile money payments.
- Mobile money account ownership in Nigeria grows from 16% to 22% in the past year.
- Mobile money transactions globally reach $1.26 trillion, with a 22% increase in transaction values.
There has been a 41% increase in the number of registered agents for mobile money payments in Nigeria according to a new report.
The report titled State of the Industry on Mobile Money Report 2023 was compiled by GSM Association (GSMA) and supported by the Bill & Belinda Gates Foundation.
Director-General of GSMA, Mats Granryd, remarked that
- “Some of the key contributors to the growth of mobile money in the past few years have been regulatory changes in large markets. In Nigeria, for example, new licenses have seen many new mobile money players emerge, and with this a 41% growth in the number of registered agents”
Among all adults in Nigeria that are aware of mobile money and have used a mobile phone, mobile money account ownership has grown from 16% to 22% in the last year. Of all adults with a mobile money account, 88% have one registered in their name (a nine-percentage point increase year on year). The report says.
According to the reports, globally registered mobile money accounts grew by 13% year on year, from 1.4 billion in 2021 to 1.6 billion in 2022. However much of this growth happened in Sub-Saharan Africa where there is a 17 percent increase in registered accounts taking its number of users to 763 million.
Beyond users, financial transactions facilitated by Mobile Money also witnessed impressive growth within the period under review. According to the report, transaction values grew by 22% to $1.26 trillion up from around $ 1 trillion in 2021.
The report also featured how Mobile Money Platforms are helping users save funds. In 2022, around 60% of MMPs offered users a savings account. Half of these providers did not offer a savings product in 2021.
The World Bank Global Findex 2021 found that 15% of adults in Sub-Saharan Africa, or 39% of all mobile money account owners in the region, saved using a mobile money account.
Although women in low and middle-income countries are 28% less likely to own a mobile money account, the report offers some positives.
Mobile Money is also fostering financial inclusion of women and low-income earners in many emerging economies the report reveals.
More women have a mobile money account than ever before and are using it at a similar rate as men on a 30-day basis.
According to Mats Granryd;
- “It has also been encouraging to see that mobile money is contributing to closing the financial inclusion gender gap.
- According to the World Bank, more women than men now own a mobile money account in at least seven countries in Sub-Saharan Africa.”
However, there is a blight as the gender gap in account ownership in Nigeria and Pakistan has widened in recent times.
The Director-General of GSMA remarked on the phenomenon
- “While there is a lot more work to be done in this space, this is a hugely positive advancement when women have access to mobile phones and mobile money, they can increase their economic independence and strengthen their role as financial decision-makers.
- Mobile money is driving financial inclusion around the world. As it continues to grow, it offers an incredible opportunity to reach the 1.4 billion people who still do not have access to financial services.”
International remittance payments via mobile money also saw growth according to the report. There was a 28% year-on-year growth in mobile money-enabled international remittances.
Since the covid-19 pandemic, there has been a consistent upward trend in international remittance payments via mobile money. This is because of its speed, safety, and cost-effectiveness.
The authors of the report advised countries and entrepreneurs to keep designing safe and secure financial services for all as the world works towards a sustainable and resilient future where everyone is connected.
