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Mobile Money: Driving Economic Growth and Financial Integration

In 2024, mobile money reached two significant milestones: it surpassed two billion registered accounts globally and achieved over 500 million monthly active users. This explosive growth in the mobile money sector reflects changing financial behaviors and the increasing reliance on technology for financial transactions. The new State of the Industry Report on Mobile Money 2025 by the GSMA outlines this transformation, revealing that the industry took 18 years to reach its first billion accounts and only five additional years to double that figure.

This rise has led to approximately 108 billion transactions, yielding a total transaction value of over $1.68 trillion reported in 2024. These figures indicate a 20% increase in transaction volume and a 16% growth in transaction value, demonstrating the ongoing stability and expansion of the mobile money sector.

Vivek Badrinath, the Director General of GSMA, emphasized mobile money's role as a driver for financial integration and economic growth. He pointed out that the success of mobile money relies heavily on supportive legal frameworks to foster innovation and accessibility, allowing broader socio-economic potential to be unlocked. To maintain this momentum, it is crucial for governments and regulatory bodies to partner with financial service providers to facilitate financial education and effectively support underserved populations.

The economic implications are profound, as countries that have adopted mobile money services are expected to see a GDP increase of $720 billion, representing a growth rate of 1.7% by 2023. Notably, in Sub-Saharan Africa, mobile money contributed around $190 billion to the GDP in 2023, further underlining its importance in driving regional economic development.

Sub-Saharan Africa remains a global leader in mobile money, with notable growth in account registrations in East and West Africa. In 2024, East Africa led the way in active account growth, followed closely by Southeast Asia and West Africa. Meanwhile, countries in the Asia-Pacific region also recorded significant advances, especially in Cambodia, Fiji, the Philippines, and Vietnam. Here, supportive regulations have been instrumental in fostering mobile money success.

Moreover, many providers in this region have transitioned into full-service financial platforms, offering services like loans, savings, and insurance. By June 2024, 44% of providers were offering credit services, making it the most common adjacent financial product in the mobile money ecosystem.

Despite the robust growth, challenges persist, particularly around gender equity. In eight of the twelve countries examined, vast differences in mobile money usage between men and women continue. Low awareness and a lack of digital financial literacy are significant barriers to entry. Almost 60% of mobile money providers have initiated programs to enhance digital competence, aimed at increasing acceptance and bridging the gender divide.

Overall, the mobile money sector's rapid expansion illustrates the pivotal role of technology in shaping modern financial systems, bringing both opportunities and challenges that require ongoing collaborative efforts to ensure inclusive growth. The future of mobile finance looks bright, but careful attention to accessibility and education will be essential for maximizing its potential for all users.