The GSMA has today published its 10th annual ‘State of the Industry Report on Mobile Money’. It reveals that mobile money adoption and use saw continued growth in 2021, processing a record $1 trillion annually.
The industry enjoyed a substantial increase in the number of registered accounts, up 18% since 2020 reaching 1.35 billion globally. The volume of person-to-person transactions were up to more than 1.5 million every hour.
The report reveals that one of the most significant drivers of growth was merchant payments, which almost doubled year on year.
It also highlights how mobile money continues to act as a core pillar of financial and economic inclusion, particularly for women.
Providing significant growth in merchant payments
Mobile money diversified its value proposition beyond person-to-persontransfers and cash-in/cash-out transactions in 2021.
It is now playing an important role in the daily lives of people and businesses, especially in low and middle-income countries (LMICs).
The growth of ecosystem transactions such as merchant payments, international remittances, bill payments and bulk disbursements, together with interoperable transactions, are accounting for a more significant share of the global mobile money transaction mix.
Merchant payments were instrumental in the growth of the mobile money industry in 2021. The value of merchant payments almost doubled, reaching an average of $5.5 billion in transactions per month.
Providers are demonstrating that they can attract businesses to their platform with better incentives, such as efficient remote onboarding processes.
For example, since Safaricom’s M-PESA began allowing companies to register for an account online in Kenya, more than 18% of new merchants are self-onboarding.
“2021 was the year mobile money started to really diversify to B2B services. Beyond traditional person-to-person transactions, such as transferring money to family or friends, the industry is now central in helping small businesses operate more efficiently, and serve their customers better” said Max Cuvellier, Head of Mobile for Development, GSMA.
To find out more, download the 2022 State of the Industry Report on Mobile Money here:
