Update On The Use Of Mobile Money In Africa
The mobile money industry in Africa has taken a digital leap due to its rapid growth. Much of this is due to improved access to technology and the need for contactless payments due to the COVID-19 pandemic.
According to GSMA, "In 2020, 562 million users completed 27.50 billion mobile money transactions in Africa. This represents 15% of all transactions carried out worldwide.
In a study conducted by the American research firm Boston Consulting Group (BCG), Kenya and Ghana have the second and third largest uses of mobile payment in the world, after China.
The study also found that 87% of Kenya's GDP is held in transactions through wallets and mobile phones and 82% in Ghana.
Mobile money is an integral part of financial inclusion, especially in Africa. Therefore, statistics imply wider coverage of the population of Ghana and Kenya in the financial inclusion net in recent years due to the availability of mobile money services.
It would be interesting to see how the future unfolds for the financial services industry when it comes to mobile money compared to traditional financial institutions.