Skip to main content

Upside Growth Forecast for Mobile Money Services

Over the past three years, mobile money services have blossomed across a range of markets in developing Asia and sub-Saharan Africa. Encouraged by the astonishing success of Safaricom’s M-PESA in Kenya, other mobile network operators have sought to emulate it by deploying their own range of transfer and remittance options, thereby reaping substantial rewards from their deployments.

Nearly 400 million mobile phone users worldwide are expected to use their handsets for mobile money transfer by 2018, that's up from just under 150 million this year, according to the latest market study by Juniper Research.

Growth is expected to be driven primarily by deployments of domestic money transfer services, with multinational network operators increasingly launching products on a group-wide rather than an ad hoc basis.

Findings from the market study stressed the need for mobile network service providers to ensure that support infrastructure -- including an extensive agent network -- needed to be in place well in advance of commercial launch.

Juniper suggested that the agent-to-subscriber ratio should be no greater than 1:500 to ensure a high proportion of active users, with strong agent concentrations at the outset in key urban areas within developing markets.

The study findings also identified the key criteria for Mobile Money Incubators -- assessing the optimal conditions to nurture mobile money service deployment and development, and highlighting markets which fulfilled these criteria.


How New Taxes Could Halt Adoption

However, Juniper cautioned against the imposition of new taxes on mobile money services, such as those recently introduced in Kenya and Uganda.

"While the impact on the Kenyan market appears to have been limited thus far, we should point out that this is the most mature mobile money market," said  Dr Windsor Holden,  research director at Juniper Research.

The introduction of a similar government tax in a market in the early stages of service adoption could serve as a severe brake on growth or make potential service providers reconsider planned deployments.

Other findings from the market study include:
  • Airtime top-up is now viewed as the primary mobile international remittance opportunity.
  • Money transfer platforms are becoming increasingly modular and flexible to enable integration of future bolt-on services.

Popular posts from this blog

Artificial Intelligence Growth at an Inflection Point

Business technology investment no longer follows a predictable path to growth. The global venture capital (VC) investment in artificial intelligence (AI) was close to its peak in 2021 reaching $22.3 billion, according to the latest worldwide market study by ABI Research. This is just $400 million shy of the historical high of $22.7 billion recorded in 2019. Compared to the $15 billion recorded in 2020, the market made a remarkable recovery, with a 48.5 percent year-on-year growth. Will the future AI marketplace return to stable growth, or will it remain volatile? Artificial Intelligence Market Development "COVID-19 greatly accelerated the speed of digital transformation within the enterprise. Businesses are looking for solutions to work processes automation, customer care, due diligence, transcription and translation, and sales and marketing enablement tools," said Lian Jye Su, research director at ABI Research . At the same time, COVID-19 led to the Great Resignation of 2021

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th