A 2023 mobile money report which was compiled by GSM associations (GSMA), revealed that Mobile money account ownership in Nigeria recorded a significant increase in 2022, which saw it grow from 16% to 22%.
The country also witnessed a 41% increase in registered agents for mobile money payments. These agents were reportedly responsible for digitizing $294 million in total cash-in transactions, representing 17 percent from 2021.
According to the director of GSMA Mats Granyrd, the key contributors to the growth of mobile money have been regulatory changes in large markets.
In Nigeria for instance, the CBN’s decision to relax its stance on the criteria for operating a financial services company has led to the rise of many new players in the industry.
Also, Telcos such as MTN and Airtel are pushing aggressively into the financial services sector through their various mobile money subsidiaries. The telco’s entry into mobile money according to the report was also responsible for the growth in mobile money account ownership from 16 percent to 22 percent in the last year.
On a positive note, the growth in registered banking agents in the country has no doubt created millions of jobs for people and has increased access to mobile money services for more people.
According to the report, on a global level, registered mobile money accounts grew by 13% year on year, from 1.4 billion in 2021 to 1.6 billion in 2022. However much of this growth happened in Sub-Saharan Africa where there is a 17 percent increase in registered accounts taking its number of users to 763 million.
Investors King understands that Mobile money has recorded tremendous growth over the past two decades, cementing itself as a mainstream financial service. As it continues to grow, demonstrating incredible resilience over the pandemic and beyond, the industry is diversifying rapidly.
The industry is entering new markets and forging new industry partnerships and offering a range of innovative products and services that are helping millions of people send money locally and internationally, manage their savings, pay their bills, increase their income, and access social support.
Meanwhile, experts reveal that there is still a lot of work to be done as about 1.4 billion people remain unbanked and disconnected from formal financial services.