GSMA Report: 'Mobile Money Continues to Positively Impact the Lives and Livelihoods of Millions, but There Is a Need for Greater Digital Financial Literacy'

As I was preparing for a phone call with a gentleman who has an idea of creating a service that will allow people in Africa to transfer funds, I found a report entitled State of the Industry Report on Mobile Money 2025 (SOITR), which finds transaction volumes and values for mobile money accounts experienced robust double-digit growth in 2024. Prepared by the GSMA Mobile Money program, which works to advance the mobile money ecosystem for communities worldwide that lack access to more traditional banking services, the report also points out that approximately 108 billion transactions, totaling over $1.68 trillion, were processed through mobile money accounts in 2024. Year-on-year, transaction volumes increased by 20%, while transaction values grew by 16%, up from a 13% increase in 2023.

The report provides a quantitative assessment of the state of the mobile money industry based on GSMA data from the Mobile Money Deployment Tracker, the 2024 Global Adoption Survey on Mobile Money and Mobile Money Estimates and Forecasts. This supply-side data is further enhanced with nationally representative quantitative primary research from the 2024 GSMA Consumer Survey of seven low- and middle-income countries (LMICs).

The report's key findings include:

• In 2024, the mobile money industry achieved two major milestones: these were over two billion registered accounts and more than half a billion monthly active accounts;
• Mobile money continues to contribute to the gross domestic product (GDP) in countries with a service;
• Growth in Sub-Saharan Africa has contributed to the increased reach of mobile money agent networks worldwide;
• Mobile money offers a viable business case to parent companies, with average revenue per user having grown from $2.86 in 2023 to $3.51 in 2024;
• In 2023, the value of both bill payments and bulk transfers dropped for the first time; in 2024, both use cases saw a significant rebound;
• Several interoperable mobile money use cases saw continued growth in transaction values in 2024;
• The number of mobile money providers offering adjacent services has grown again;
• When comparing different regions, mobile money in East Asia and the Pacific has seen progress over the past few years;
• Many mobile money providers (MMPs) are benefitting from a more enabling regulatory environment in several areas;
• Across 12 countries surveyed (Bangladesh, Egypt, Ethiopia, India, Indonesia, Kenya, Nigeria, Pakistan, the Philippines, Senegal, Tanzania and Uganda), a gender gap in mobile money account ownership exists in eight countries (Bangladesh, Egypt, Ethiopia, India, Nigeria, Pakistan, the Philippines, and Senegal); and
• Mobile money continues to positively impact the lives and livelihoods of millions, but there is a need for greater digital financial literacy.

Regarding how mobile money providers are improving customer behavior, the report notes that "MMPs are taking steps to overcome these challenges. Many are investing in artificial intelligence (AI)-driven credit-scoring algorithms to improve their understanding of borrower behavior and tailor repayment options to prevent defaults. In India, Airtel Payments Bank has launched an AI-powered credit scoring system to assess creditworthiness, providing users with personalized financial solutions." What is more, "Such initiatives can gradually improve financial solutions to foster greater inclusion. For instance, AI can be used to generate data on a customer's ability to repay a loan."

With respect to the need for greater digital financial literacy to maximize mobile money's positive impact on the lives of millions of people, the report explains that "[w]hile mobile money serves as an entry point to other services, low digital financial literacy is often a barrier. As a result, around 60% of survey respondents have launched a digital financial literacy policy to increase digital skills and therefore mobile money use over time."

Lastly, on the topic of comparing different emerging and developing markets, the report importantly notes: "In 2024, East Asia and the Pacific had the second fastest growth rate for active monthly accounts behind the Middle East. It is one of the few regions where active 30-day accounts grew faster than registered accounts. Enabling regulation in markets such as Cambodia, Fiji, the Philippines and Vietnam has supported the growth of digital payments."

During my conversation with the young gentleman originally from West Africa who is seeking to develop a money transfer platform for his home market, I referenced the following text provided in the report's Forward authored by GSMA's Director General, Vivek Badrinath: "Today, Sub-Saharan Africa remains the epicenter of mobile money, accounting for over 1.1 billion registered accounts. However, East Asia and the Pacific and the Middle East and North Africa will be interesting regions to watch moving forward. Last year, both regions saw considerable growth in the number of mobile money accounts, active users and transaction volumes."

Mr. Badrinath encouragingly adds that "[a]s mobile money continues to drive financial inclusion, it is also unlocking new opportunities for people to save, earn, and spend – solidifying its place as a true fintech success story."

What do you think of the report's findings?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.