Mobile money services are experiencing faster growth than predicted around the globe, as digital services continue to rise in popularity, according to the annual ‘State of the Industry Report on Mobile Money 2023’, published by the GSMA and funded by the Bill and Melinda Gates Foundation. The report reveals that the number of registered accounts increased by 13% year on year, from 1.4 billion in 2021 to 1.6 billion in 2022, surpassing previous estimates. The industry took 17 years to reach the first 800 million customers, however, it took just five years to reach the next 800 million. The total transaction value for mobile money grew by an incredible 22% between 2021 and 2022, from $1 trillion to around $1.26 trillion.
The pandemic has helped to drive the adoption of mobile money services further. During the pandemic, up to 400 million accounts were added alone, largely due to the technology’s role in enabling millions of people across low- and middle-income countries to access digital financial services. The number of accounts active on a 30-day basis also grew by 13% year-on-year to 401 million in 2022. International remittances grew by 28% year on year, reaching $22 billion, during 2022. The trend continued at a slower rate in 2022 as diasporas favoured the service for its efficiency, speed, safety and cost-effectiveness.
Mobile money is also driving financial inclusion, particularly amongst women in rural communities. However, there is still a gender gap, which has shown signs of widening over the last year, particularly in India, Indonesia and Pakistan. Women in low- and middle-income countries are currently 28% less likely than men to own a mobile money account.
Despite the growth, more work is still needed to help give underserved communities access to safe, secure and affordable financial services. The GSMA Mobile Money Programme is working with mobile operators and industry stakeholders worldwide to create a robust mobile money ecosystem, increasing the relevancy and utility of these services and ensuring their sustainability. The report shows that there are now 315 live mobile money deployments across the globe, with peer-to-peer (P2P) transfers and cash-in/cash-out transactions still among the most popular use cases. Bill payments grew by 36% year-on-year – faster than any other use case – and the industry continues to focus on use case diversification, playing an important role in digitising economies.
The number of mobile money agents also increased significantly last year, with a 41% increase between 2021 and 2022. The overall number of agents went from 12 million in 2021 to 17.4 million in 2022, with Nigeria experiencing the most significant growth due to a more liberal regulatory regime. Agents are responsible for two-thirds of all cash-in transactions in 2022.
While the service has brought access to digital financial services to millions, there is still a long way to go to bring these services to over a billion people worldwide who remain unbanked. The GSMA is encouraging governments worldwide to develop enabling policies that can support mobile money deployments and further boost the growth of this crucial ecosystem. Doing so helps accelerate the digitisation of national economies and build financial resilience, allowing communities to support themselves in uncertain times.
The full report is available to download on the GSMA website.
