This record figure is a sign of strong growth in the sector thanks to the explosion in the number of accounts, value and volume of transactions
South Africa, Johannesburg, March 30, 2022 : The GSMA today released its 10e annual report on the state of the mobile money industry (“SOTIR”). It reveals that the adoption and use of mobile money has seen continued growth in 2021, processing a record $1 trillion per year. The industry has benefited from a substantial increase in the number of registered accounts, up 18% since 2020 to reach 1.35 billion globally. The volume of person-to-person transactions has increased to more than 1.5 million per hour.
The report reveals that a key driver of growth was merchant payments, which nearly doubled year-over-year. It also highlights how mobile money continues to act as a key pillar of financial and economic inclusion, especially for women.
Ensure significant growth in merchant payments
In 2021, mobile money has diversified its value proposition beyond person-to-person transfers and cash-in/cash-out transactions. It now plays an important role in the daily lives of people and businesses, especially in low- and middle-income countries (LMICs). The growth of ecosystem transactions, such as merchant payments, international remittances, bill payments and bulk disbursements, as well as interoperable transactions, account for a larger share of all online transactions. mobile money in the world.
Merchant payments have been instrumental in driving the growth of the mobile money industry in 2021. The value of merchant payments nearly doubled, reaching an average of $5.5 billion in transactions per month. Vendors are demonstrating that they can attract businesses to their platform with better incentives, such as efficient remote onboarding processes. For example, since Safaricom’s M-PESA began allowing businesses to register for an account online in Kenya, over 18% of new merchants are self-registering.
“2021 was the year mobile money started to really diversify into B2B services. Beyond traditional person-to-person transactions, such as transferring money to family or friends, the industry is now central to helping small businesses run more efficiently, and better serve their customers,” said Max Cuvellier, Head of Mobile for Development at the GSMA.
Improving women’s financial inclusion
Mobile money has also been a driving force in the financial inclusion of the world’s most vulnerable people, especially women. Mobile money allows women to better control their finances and buy urgently needed goods. In addition, 44% of providers responding to the GSMA’s Global Mobile Money Adoption Survey now offer credit, savings or insurance products, giving disadvantaged people the opportunity to invest in their livelihoods and their future.
With the gender gap in mobile money account ownership ranging from 7% in Kenya to 71% in Pakistan, there are still barriers that prevent vulnerable people from benefiting from mobile money . Owning a mobile phone is an obvious prerequisite for using mobile money, and women in LMIC-MICs are 7% less likely than men to own a mobile phone. In total, 143 million fewer women than men own a mobile phone. Other barriers to accessing mobile money include lack of mobile money awareness and perceived lack of relevance, knowledge and skills.
While some progress has been made, the report clearly indicates that more needs to be done to close the gender gap in mobile money in MIC-FRCs. Concerted action is needed from policy makers, the private sector, donors and other stakeholders to learn from the successes, tackle the problem and ensure that existing gender inequalities are not worsened. worsen, especially in light of the COVID-19 pandemic.
Mobile money provides access to humanitarian aid, public services and agricultural solutions.
As the report highlights, in 2022 the number of people in need of humanitarian assistance is expected to reach 274 million. Mobile money is expected to play an increasingly important role both in giving – where it makes delivery systems more efficient and transparent for humanitarian actors and donors – and in receiving aid.
The UN Refugee Agency sent $700 million in cash and value assistance (CVA) to 8.5 million beneficiaries in 100 countries in 2020. They set up digital payment programs in 47 countries, 15 of which use mobile money. In many humanitarian contexts, digitizing CVA through mobile money has the potential to promote agency and dignity, and foster financial inclusion.
Mobile money also facilitates access to basic public services and agricultural solutions in LMICs. For this work to continue, the mobile industry and the humanitarian sector must continue to work together to advance digital and financial inclusion for those who need it most.
To learn more, download the 2022 State of the Mobile Money Industry Report here : To learn more about the GSMA Mobile Money program, visit: www.gsma.com/mobilemoney.
About the GSMA
The GSMA is a global organization that unifies the mobile ecosystem to discover, develop and deliver fundamental innovations for positive business environments and societal change. Our vision is to unleash the full power of connectivity so that people, industry and society thrive. Representing mobile operators and organizations in the mobile ecosystem and related industries, the GSMA offers its members three main pillars: Connectivity for Good, Industry Services and Solutions, and Outreach. This business is about advancing policy, addressing today’s greatest societal challenges, supporting the technology and interoperability that makes mobile work, and providing the world’s largest platform to bring the ecosystem together. mobile during the MWC and M360 series of events.
We invite you to learn more at www.gsma.com.