Mobile money adoption forecast presents new opportunities for businesses…
It’s an exciting time in Africa’s mobile money market. Beyond its role in transforming how transactions are conducted in regions with limited access to traditional banking, mobile money presents excellent opportunities for businesses on the continent.
The global mobile money market’s trajectory over the last decade is remarkable. It is poised for rapid expansion. From an estimated $12.94 billion in 2024 to a projected $15.96 billion in 2025, the market is expected to grow at a compound annual growth rate (CAGR) of 23.4%. However, with Africa experiencing its own impressive trajectory, it is essential to understand how the continent’s market integrates into the broader global outlook.
Africa’s mobile money market is projected to grow at a CAGR of 19.3% over the next decade. From $674.8 million in 2023, it will reach $3.448 billion by 2032. This significant growth reflects the rising adoption of mobile payment systems, particularly in developing economies where mobile penetration outpaces financial infrastructure development.
It is not surprising that the growth of the mobile money market has been impacted by the increasing use of smartphones, increased internet accessibility, and the convenience of mobile transactions for users. But what significance will this growth trajectory have for businesses operating in the remotest parts of the continent over the next few years?
Firstly, Mobile money enables businesses to tap into previously inaccessible markets. Many Africans remain unbanked, meaning businesses still have access to millions of potential customers who can now participate in the digital economy.
On another note, the African Continental Free Trade Area (AfCFTA) agreement highlights mobile money’s potential to deepen cross-border trade and economic integration. Mobile money providers facilitate faster and more reliable transactions for businesses engaged in regional trade and enable seamless international payments. Put simply, businesses can leverage mobile payment systems to expand their reach across borders, tap into new markets, and form strategic partnerships.
What do the strategic approaches that businesses in the region need to adopt look like, however?
Beyond conducting market research to analyse customer preferences, cultural nuances, and mobile money adoption rates in their target regions, a critical strategy to adopt would be to drive digital literacy campaigns. Educating customers about mobile money usage is crucial, and ensuring they understand the benefits and security measures to protect customer data and transactions. Building customer trust and confidence is more than necessary if the continent is to improve its current adoption rate.
Businesses must also collaborate with mobile money providers like Bani Africa to build innovative solutions that offer additional value-added services. While utilising mobile money as a payment medium has become mainstream, introducing features like savings options, credit, microloans, insurance, and loyalty programs is crucial for attracting and retaining customers.
Similar collaborative strategies to explore blockchain, artificial intelligence, and other innovations that can transform mobile money solutions are equally necessary to thrive in a competitive, tech-driven market as the mobile payment landscape continues to evolve.
Although Africa can boast of its recent growth in the mobile money market, challenges remain. Fragmented regulatory frameworks in African countries continue to create uncertainty for businesses. At the same time, inadequate internet connectivity and electricity in certain regions are notorious for impeding mobile money systems’ functionality.
Therefore, it is just as crucial for businesses to fully engage in public-private partnerships to address challenges, such as supporting mobile and internet infrastructure in underserved areas or investing in robust systems that function even in low-bandwidth or offline environments.
Indeed, the mobile money market is a dynamic sector with immense potential to reshape the global financial ecosystem. With its unique challenges and opportunities, Africa is poised to play a pivotal role in this transformation. As the global market heads toward a projected $15.96 billion in 2025 and $3.448 billion in Africa by 2032, there is no better time for business operators to leverage insights and align efforts to unlock their full potential.
