Wednesday , May 18 2022

How Mobile Money Continues To Boom In Africa



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A M-Pesa transaction in 2008 using a Nokia 1100 feature phoneVodafone.

The tie-up of Kenya's mobile sensation M-Pesa with PayPal and remittance giant Western Union, coupled with the joint venture between two of the largest cellular operators – MTN and Orange – for a mobile wallet that has network across all operated one year seen significant developments in Africa's already blooming mobile payments market

M-Pesa has 28.5-million users in East Africa who will now be able to transact with remittance giant Western Union's 500,000 global agents in over 200 countries.

M-Pesa has revolutionized mobile transacting, first in Kenya where it was launched by Safaricom in 2007, then in the rest of the East Africa and now in West Africa.

For the three months to June 2018, M-Pesa processed 581-million transactions for its 23-million Kenyan subscribers, worth $ 14.6-billion or $ 162-million a day, according to the Communications Authority& nbsp; of Kenya

"The power of financial technology to expand access to and use accounts is the most persuasively in Sub-Saharan Africa," the World Bank's Global Findex Database& nbsp; wrote in its financial inclusion survey which found 21% of adults in the & nbsp; region now have a mobile money account. This is "about twice the share in 2014 and easily".

Last year the GSM Association said over half of all mobile money& nbsp; services in the world are in Sub-Saharan Africa, which remains the fastest-growing mobile market in the world. The region is expected to have 500 million subscribers by 2020.

"Across the region, mobile money plays a key role in expanding financial services to people with limited access to traditional financial institutions, women and rural population. There were 135 live mobile money services across the region at the end of 2017, with 122 million active accounts," the GSMA said in its The Mobile Economy Sub-Saharan Africa 2018report.

M-Pesa announced in April that it will work with PayPal, which has 254 million users, with whom M-Pesa users can potentially do business

Quoting figures from the World Bank, Western Union said that Kenya is a net remittance receiver of $ 2-billion, while outbound remittances were $ 36 million, which was both a 13% year-over-year rise in 2017

M-Pesa processes over 1.7-billion transactions a year which accounts for more than 50% of Kenya's GDP value. "M-Pesa is a revolution that has empowered millions of people in some of the poorest communities in the world," said Michael Joseph, now Vodafone Group's Director of Mobile Money and who was CEO of Safaricom when M-Pesa launched.

The Findex survey said "While mobile money has centered in East Africa, the 2017 update reveals that it has spread to the West Africa and beyond".

Earlier this month Group CEO Rob Shuter told the AfricaCom conference in Cape Town that MTN plans reitroduce its mobile money in its key South Africa and Nigerian markets next year; and intends to be "the biggest provider of mobile financial services in Africa".

Originally launched in 2012 n South Africa, it was shut down in 2016, coincidentally the year Safaricom holding company Vodacom closed M-Pesa in its home market.

MTN said it had 24.1-million active Mobile Money users in 14 countries at the end of June.

The joint venture between MTN and Orange, is calledMowali, for mobile wallet interoperability, which will "make it possible to send money between mobile money accounts, any real time and at low cost".

"Sub-Saharan Africa's 46 markets in 22 of 100 million mobile money accounts and mobile money operations together, bringing together MTN Mobile Money and Orange Money of Mowali will be benefited from the reach. Mowali is ready to enable interoperability between digital financial service providers beyond MTN and Orange operations and markets, to support the existing 338 million mobile money accounts in Africa," the companies said

MTN is 225.4 million subscribers in 21 countries, at the end of June 2018; While Orange is 201-million mobile customers globally in 28 countries, at the 30 September 2018.

"Interoperability of digital payments has been the toughest hurdle for the financial services industry to overcome, in support of financial inclusion," said Kosta Peric, deputy director of financial services for the poor, at the Bill & amp; Melinda Gates Foundation "With Mowali, Orange and MTN deliver a solution that will enable them, and other companies, to scale digital financial services across Africa, faster, to everyone – including the poor. This is a sign that a new wave of innovation, which can help alleviate poverty and drive economic opportunity, is coming."

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A M-Pesa transaction in 2008 using a Nokia 1100 feature phoneVodafone.

The tie-up of Kenya's mobile sensation M-Pesa with PayPal and remittance giant Western Union, coupled with the joint venture between two of the largest cellular operators – MTN and Orange – for a mobile wallet that has network across all operated one year seen significant developments in Africa's already blooming mobile payments market

M-Pesa has 28.5-million users in East Africa who will now be able to transact with remittance giant Western Union's 500,000 global agents in over 200 countries.

M-Pesa has revolutionized mobile transacting, first in Kenya where it was launched by Safaricom in 2007, then in the rest of the East Africa and now in West Africa.

For the three months to June 2018, M-Pesa processed 581-million transactions for its 23-million Kenyan subscribers, worth $ 14.6-billion or $ 162-million a day, according to the Communications Authority of Kenya.

"The power of financial technology to expand access to and use accounts is the most persuasively in Sub-Saharan Africa," the World Bank's Global Findex Database has written in its financial inclusion survey which found 21% of adults in the area now have a mobile money account This is "almost double the share in 2014 and easily the highest of any region in the world".

Last year the GSM Association said over half of all mobile money services in the world are in Sub-Saharan Africa, which remains the fastest-growing mobile market in the world. The region is expected to have 500 million subscribers by 2020.

"Across the region, mobile money plays a key role in extending financial services to people with limited access to traditional financial institutions, special women and rural population. There were 135 live mobile money services across the region at the end of 2017, with 122- million active accounts, "the GSMA said in its The Mobile Economy Sub-Saharan Africa 2018 report

M-Pesa announced in April that it will work with PayPal, which has 254 million users, with whom M-Pesa users can potentially do business

Quoting figures from the World Bank, Western Union said that Kenya is a net remittance receiver of $ 2-billion, while outbound remittances were $ 36 million, which was both a 13% year-over-year rise in 2017

M-Pesa processes over 1.7-billion transactions a year which accounts for more than 50% of Kenya's GDP value. "M-Pesa is a revolution that has empowered ten millions of people in some of the poorest communities in the world," said Michael Joseph, now Mobile Money of Vodafone Group's Director and who is Safaricom CEO when M-Pesa is launched.

The Findex survey said "While mobile money has centered in East Africa, the 2017 update reveals that it has spread to the West Africa and beyond".

Earlier this month Group CEO Rob Shuter told the AfricaCom conference in Cape Town that MTN plans reitroduce its mobile money in its key South Africa and Nigerian markets next year; and intends to be "the biggest provider of mobile financial services in Africa".

Originally launched in 2012 n South Africa, it was shut down in 2016, coincidentally the year Safaricom holding company Vodacom closed M-Pesa in its home market.

MTN said it had 24.1-million active Mobile Money users in 14 countries at the end of June.

The joint venture between MTN and Orange, is calledFor mobile wallet interoperability, which will "make it possible to send money between mobile money accounts issued by any mobile money provider, in real time and at low cost".

"Mowali will be immediately benefited from the reach of MTN Mobile Money and Orange Money, sub-Saharan Africa's 46 markets in 22 of the 100 million mobile money accounts and mobile money operations bringing the Mowali digital financial service providers between interoperability beyond MTN and Orange operations and markets, to support the existing 338 million mobile money accounts in Africa, "the companies said.

MTN is 225.4 million subscribers in 21 countries, at the end of June 2018; While Orange is 201-million mobile customers globally in 28 countries, at the 30 September 2018.

"Interoperability of digital payments has been the toughest hurdle for the financial services industry to overcome, in support of financial inclusion," said Kosta Peric, deputy director of financial services for the poor, at the Bill & Melinda Gates Foundation. "With Mowali, Orange and MTN deliver a solution that will enable them, and other companies, to scale digital financial services across Africa, faster, to everyone – including the poor. This is a sign that a new wave of innovation, which can help alleviate poverty and drive economic opportunity, is coming. "

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