The PAYTECH Book

Mobile Money: Creating a Cash-Light Africa to Solve the Financial Inclusion Problem

Srinivas Nidugondi

EVP and Chief Operating Officer, Mobile Financial Solutions, Comviva

and Mohit Bhargava

Deputy General Manager, Product Marketing, Mobile Financial Solutions, Comviva

The USA and Europe are, without a doubt, at the centre of any discussion pertaining to mobile payments. And why not? From credit cards to online banking, the very genesis of digital payments took place in these regions. Mobile payments, though, are altogether a different ball game. In this context, Sub-Saharan Africa takes centre stage, with services like M-Pesa, EcoCash, Airtel Money and Orange Money in the fray.

An Overview of Mobile Money in Africa

The 2007 launch of M-Pesa in Kenya marked the debut of mobile money in Sub-Saharan Africa. Since then, the service has grown in leaps and bounds in the region. So much so, in fact, that there are 142 mobile money services in 42 Sub-Saharan African countries currently. This accounts for approximately half of the world’s mobile money services and active users.

To illustrate further, one in every five adults in the region actively uses the service, according to the World Bank Findex. In fact, in 12 African countries, the number of mobile money accounts surpasses bank accounts, facilitating financial inclusion for millions of unbanked customers. Mobile money has become an integral part of the region’s financial system.

Figure 1: Countries where mobile money account ...