This archive report was first published on 19 May 2020.
On May 19, 2020, the GSMA unveiled its annual 'State of the Industry Report on Mobile Money', providing a comprehensive view of the mobile money landscape and its impact on lives, economies, and innovation, particularly in emerging markets.
The report highlights the significance of one billion registered accounts for the mobile money industry, users, and the future of the mobile money ecosystem. It showcases a picture of adoption and usage around the globe, with a focus on the industry's growth and user trust.
According to the report, 2019 marked a major milestone for the mobile money industry, with over one billion registered accounts and close to two billion dollars in daily transactions. Digital transactions represented the majority, 57 percent, of mobile money interactions for the first time in 2019.
John Giusti, Chief Regulatory Officer at the GSMA, stated, 'Increased mobile connectivity and innovative services such as mobile money are building stronger and more inclusive communities.' He added that surpassing one billion mobile money accounts represents a major milestone for an industry that did not exist just over a decade ago.
The report also explores the empowerment that comes with owning a mobile money account, including increased access to financial services for women, low-income households, and smallholder farmers. Millions of migrants and their families are experiencing the benefits of faster, safer, and cheaper international remittances, and humanitarian cash assistance is being delivered more thoughtfully to those in crises.
Giusti emphasized the importance of regulation in enabling low-cost services for the financially excluded, stating that there is a clear correlation between an enabling regulatory environment and a high mobile money adoption rate. However, he noted that certain policy decisions, such as sector-specific taxation and data localisation requirements, are putting pressure on the industry and creating a risk of long-term negative impacts on financial inclusion gains, access to innovative services, and delivery of the SDGs.
Key Trends in 2019:
- A growing number of providers are becoming commercially sustainable.
- Direct revenue from mobile money is supporting investment in innovative products and services, network expansion, and healthy and sustainable agent commissions.
- The industry continues to invest in distribution networks, with the number of agent outlets almost tripling over the past five years.
- The digitisation of payments has reached new heights with digital transactions representing the majority of mobile money flows (57 percent) for the first time in 2019.
- More value is circulating in the mobile money system than exiting – another industry first.
