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Mobile money growth surpasses GSMA expectations

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Mobile money accounts grew 13% to 1.6 billion in 2022 as daily transactions reached in value of US$3.45 billion, according to trade body the GSMA.

Total transaction value grew by 22% between 2021 and 2022, from US$1 trillion to around US$1.26 trillion. The GSMA highlighted despite the success, 1.4 billion people remain unbanked.

There are now 315 live mobile money deployments globally with peer-to-peer transfers and cashing/cash-out transactions being the most popular use cases.

Bill paying through mobile money has grown by 36% year-on-year, the fastest-growing use case in 2022. The GSMA said it aims to grow mobile money use by encouraging users to diversify in use cases. The number of daily active users increased by 13% year-on-year to 401 million, and international remittances through mobile money grew 28% to US$22 billion, this was spurred by diaspora communities sending money during the pandemic between 2020 and 2021.

According to the GSMA, the gender gap in mobile money is “widening”, particularly in Indonesia, India and Pakistan. Women in low and middle-income countries are 28% less likely than men to own a mobile money account.

The number of mobile money agents increased by 41% from 12 million to 17.4 million. Active agents increased by 25% to 7.2 million, with the majority of this growth stemming from Nigeria, where the market benefitted from a liberal regulatory regime, said the GSMA. Agents were responsible for two out of three cash-in transactions in 2022.

GSMA head of mobile for development Max Cuvellier said: “Even with this significant growth, there is still a long way to go to bring those services to over a billion people worldwide who remain unbanked. The GSMA is therefore encouraging governments worldwide to keep developing the enabling policies to support mobile money deployments and further boost the growth of this crucial ecosystem. Doing so helps accelerate the digitization of national economies and build financial resilience, allowing communities to support themselves in uncertain times.”

Hormuud Telecom CEO Ahmed Yusuf added: “The growth of mobile money in Somalia has been nothing short of remarkable. In just a few short years, this technology has transformed the way that money and cash aid are delivered in the country, making it faster, more reliable, and more secure than ever before.”

 

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