#London #United Kingdom #GSMA #financial inclusion #Mobile Money

Record Growth in Mobile Money

In 2024, mobile money has reached two outstanding milestones, boasting more than 2 billion registered accounts and over 500 million active monthly users worldwide. This surge, reported by the GSMA Mobile Money Programme's 'State of the Industry Report on Mobile Money 2025', indicates a rapid expansion of this financial avenue, doubling in size within a mere five years since reaching its first billion accounts.

Transaction Values Hit New Heights

The mobile money sector processed approximately 108 billion transactions last year, accumulating a remarkable total transaction value of around $1.68 trillion. A growth rate of 20% in transaction volumes coupled with a 16% increase in transaction values highlights the resilience and potential of this industry.

Vivek Badrinath, the GSMA Director General, emphasized how mobile money serves as a crucial mechanism for financial inclusion and economic development. He remarked that the sustained success of mobile money hinges upon regulatory frameworks that foster innovation and accessibility, urging governments and financial service providers to work collaboratively in promoting financial literacy among underserved demographics.

Economic Impacts of Mobile Money

The influence of mobile money on global economies is undeniable, particularly in regions with established services. By 2023, countries utilizing mobile money experienced a collective GDP boost of $720 billion, translating to a 1.7% overall increase. Notably, Sub-Saharan Africa contributed about $190 billion to its GDP through mobile money advancements in 2023, reinforcing its status as a global leader in this arena.

Regional Growth Trends

The growth in mobile money accounts is most pronounced in East and West Africa, with East Africa leading the charge in active accounts in 2024. Southeast Asia and West Africa also contributed significantly to this growth. East Asia-Pacific demonstrated remarkable advancements, notably in countries like Cambodia, Fiji, the Philippines, and Vietnam, where favorable regulations have been instrumental in promoting mobile money services.

Furthermore, many mobile providers in the East Asia-Pacific region have evolved into comprehensive financial service platforms, expanding their offerings to include credit, savings, and insurance. As of June 2024, 44% of these providers offered credit services, making it the most prevalent financial product apart from mobile payments.

Challenges to Overcome

Despite the remarkable growth trajectory, challenges remain, particularly concerning gender disparity in mobile money ownership. Analysis shows that in eight out of twelve surveyed nations, there are notable gaps between male and female ownership of mobile money accounts. Limited awareness and insufficient digital financial literacy contribute to this issue, prompting nearly 60% of mobile money providers to initiate digital literacy programs aimed at improving adoption rates among women, thus working towards closing this gender gap.

Conclusion

The surge in mobile money represents not only a technological evolution but also a pivotal turning point in global financial accessibility and inclusion. As countries adopt more innovative regulations and programs geared towards financial education, the future of mobile financial services looks promising, paving the way for a more inclusive economic landscape.

For more details on this groundbreaking report, visit the GSMA press release.