Africa’s biggest mobile money markets

VALUE ADDED SERVICES

|
Image: By BiztechAfrica
Africa’s biggest mobile money markets

A new Gallup study funded by the Bill & Melinda Gates Foundation has found that two-thirds of Kenyans who had sent money to family members or friends living in a different city or area in Kenya did so via a mobile phone, making them the most likely to transfer money this way across several sub-Saharan countries.

Uganda and Tanzania were second and third most likely (43% and 32% of remittance senders, respectively) to report that they had made a mobile phone-based transaction in the 30 days prior to the survey.

The study of 11 sub-Saharan African countries, "Payments and Money Transfer Behavior of Sub-Saharan Africans," took an in-depth look at sub-Saharan Africans' payment behaviors regarding domestic and international remittances, government and wage payments, utilities, and other bills.

In seven other sub-Saharan African countries surveyed, fewer than one in 20 senders of domestic remittances used mobile money transfer services. In Congo (Kinshasa) and Sierra Leone, for example, mobile phones were never used to make that kind of transaction. Respondents there sent cash or brought it in person. With the exception of Kenya, at least half of remittance senders in all countries surveyed used only these informal payment channels.

In more developed banking markets such as South Africa, Nigeria, and Botswana, bank transfers were a relatively popular way to send remittances domestically, with 33%, 29%, and 22% of senders, respectively, using this channel; however, rates of cash transactions were still high in these three countries.

Across the 11 sub-Saharan African countries surveyed, adults from rural areas and villages who sent domestic remittances were more likely to have sent this money via mobile phone transfer (28%) than those living in urban areas (13%). Urban residents were more likely to have used bank transfers (25%) than were rural residents (9%). A majority among both villagers and city dwellers still only sent domestic remittances in cash, either through someone else or in person.

The report also found that contrary to what is often believed, money in African countries is not necessarily mostly flowing from the cities to the rural areas or villages.

In fact, large city dwellers were only slightly more likely to have received domestic remittances than inhabitants of rural areas or villages. Another interesting finding is that large city dwellers were as likely to have received money exclusively in cash or in person as inhabitants of rural areas or villages. The report says this study seems to suggest that domestic remittances also often flow from city to city, instead of being mostly channeled from the large urban centers to rural areas.

Another interesting finding is that the typical story of men being senders and women being recipients of domestic remittances does not accurately reflect reality. In fact, the data reveals that the differences in sending as well as in receiving domestic remittances between both genders are minuscule. Thirty percent of women reported having received domestic remittances, compared to 28% of men. Men were only slightly more likely than women to having sent or brought money to family members or friends in the 30 days prior to the interview (21% vs. 18%).



Share the News

Get Daily Newsletter

Search News

comments powered by Disqus

MORE VALUE ADDED SERVICES NEWS

ALTON, WASPAN kick against NCC’s VAS regulatory framework

The Association of Licenced Telecommunications Operators of Nigeria (ALTON) and Wireless Application Service Providers of Nigeria (WASPAN) have opposed the NCC's regulatory framework for the Value Added Services subsector. Read More

MTN Ghana soon to pay interest on Mobile Money Wallet savings

The over six million registered customers of MTN Mobile Money will soon stand a chance of earning some interest on money kept in their wallets.  Read More

Tigo Pesa customers pocket $2.3m/- in quarterly profit share

Tigo Pesa users in Tanzania have been paid a total of $2.3m/- as profit share paid every quarter by Tanzania’s leading digital lifestyle telco. Read More

Jongla launches ‘lightest’ instant messaging service in Africa

Jongla has announced that it is launching its fast, open and light instant messaging app in Africa at the Mobile West Africa conference taking place in Lagos. Read More

Surfline introduces mobile top-up code

Surfline Communications has introduced another convenient way for customers to top up their Surfline account and activate their 4G LTE internet bundles.  Read More

Airtel Money Ghana launches biggest reward scheme yet

Airtel Ghana has announced the launch of the biggest scheme to reward customers who recharge or purchase airtime with Airtel Money. Read More

Letshego becomes licensed MasterCard Issuer in Mozambique

Botswana born Letshego Holdings Limited has announced it has received its official principle issuer license from MasterCard in Mozambique. The partnership will see further payment innovations being introduced into the market to its financial inclusion efforts.  Read More

World Bank tells policymakers “go cashless” to solve poverty

Alix Murphy, Senior Mobile Analyst at WorldRemit, discusses key findings from the World Bank’s new report on financial inclusion. Read More

Nomanini integrates with M-Pesa for merchant cash-in

Nomanini has announced it has integrated with M-Pesa in Mozambique, enabled via its local country partner, Mozambique Mobile Solutions (MMS). The move will allow merchants to use mobile money agents to top up their virtual vending accounts on Nomanini terminals. Read More

BEC, FNBB partnership eases fee payments

First National Bank of Botswana (FNBB) has partnered with Botswana Examinations Council (BEC) to enable payment of 2016 JCE and BGCE examinations for private candidates through the Bank’s electronic channels. Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks UnlimitedArbor Networks

FEATURED STORY

Criticism over Remita borne out of ignorance, says SystemSpecsCriticism over Remita borne out of ignorance, says SystemSpecs

The CEO of SystemSpecs, the company behind the revenue-saving Nigerian Single Treasury Account (TSA) system, speaks to Biztechafrica.

IN DEPTH

IBM Opens First Cloud Data Centre in South AfricaIBM Opens First Cloud Data Centre in South Africa

IBM is opening a new IBM Cloud Data Centre in Johannesburg, South Africa. The new cloud center is the result of a close collaboration with Gijima and Vodacom and is designed to support cloud adoption and customer demand across the continent.  

COMPANY NEWS

RSA research reveals blind spots in threat detection

RSA, The Security Division of EMC, has released the results of a new Threat Detection Effectiveness Survey.

Networks Unlimited event highlights SimpliVity's new Omnistack Software

Leading data protection focused distributor invites hyperconverged vendor to discuss disaster recovery and data protection.