According to a new research report by Berg Insight, the number of active mobile money users in emerging markets is forecasted to grow from 61 million in 2011 at a compound annual growth rate (CAGR) of 36 percent to reach 381 million by 2017.
Several of the most successful mobile money services are today in use in Africa, but Asia-Pacific is expected to become the most important regional market, accounting for nearly two-thirds of the active user base in 2017.
The total value of mobile money transactions is projected to grow from US$44 billion in 2011 at a CAGR of 44 percent to US$395 billion in 2017.
Mobile money has a central role in extending the reach of formal financial services to the unbanked and financially underserved populations in emerging markets. The mobile phone will also be the primary self-service banking channel for a substantial share of the already banked individuals.
“The industry is in a very exciting phase right now. Mobile money has not only taken off in Kenya – we’re seeing exponential growth in Tanzania, Uganda and several other countries as well”, said Lars Kurkinen, Telecom Analyst, Berg Insight.
He adds that a number of services targeting the unbanked have been launched in several of the world’s largest countries such as Bangladesh, Pakistan, India, Nigeria, Mexico and Argentina.
In some countries mobile money services have already matured to the extent that significant business opportunities emerge for companies from adjacent industries, such as insurance providers and merchant acquirers.
“Mobile money is reshaping the market for products such as microinsurance, and will drive uptake of electronic payments for goods and services in many emerging economies”, Mr. Kurkinen concludes.
Download the report brochure here: Mobile Money in Emerging Markets
