According to wireless analyst firm Berg Insight, the number of active mobile money users in emerging markets is estimated to increase from 61 million in 2011 to 381 million by 2017 at a compound annual growth rate (CAGR) of 36 per cent.
In its research report titled, ‘Mobile Money in Emerging Markets,’ Berg Insight says that at present the most successful mobile money services are in use in Africa. However, going forward Asia-Pacific is expected to become the most important regional market, accounting for nearly two-thirds of the active user base in 2017.
As per Berg Insight, the total value of mobile money transactions is projected to grow from $44 billion in 2011 to $395 billion in 2017 at a CAGR of 44 per cent. The wireless analyst firm notes that 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.
Lars Kurkinen, telecom analyst, Berg Insight, says, “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.”
The research report says 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.
Kurkinen further adds, “Mobile money is reshaping the market for products such as micro insurance, and will drive uptake of electronic payments for goods and services in many emerging economies.”
