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

comments powered by Disqus

MORE VALUE ADDED SERVICES NEWS

Safaricom launches M-PESA mobile financial journal

Safaricom has announced the launch of M-Ledger, an Android based application that provides subscribers on the company’s network with a simple and easy to use financial journal to track and monitor their M-PESA transactions.  Read More

Airtel, Access Bank strike Access Money deal

Access Bank Plc has collaborated one of Nigeria’s leading telcos, Airtel to develop and launch a new mobile money service. Read More

Microsoft, Opera Software to extend Opera Mobile Store to more Nokia phones

Opera Mobile Store will replace Nokia Store as the default app store for Nokia feature phones, Symbian and Nokia X smartphones, following an agreement between Opera Software and Microsoft. Read More

Mobile transaction users to hit 2bn by 2017

A new report from Juniper Research has found that just over 2 billion mobile phone or tablet users will make some form of mobile commerce transaction by the end of 2017, up from 1.6 billion this year. Read More

Zero-rating key to customer acquisition - Airtel Africa

Making OTT services such as Facebook and WhatsApp available for free on mobile networks - or so-called “zero-rating” - is a key part of customer acquisition, according to Willie Ellis, head of products and innovation at Airtel Africa. Read More

Airtel to offer insurance cover for iPhone 6 and iPhone 6 Plus

Airtel has announced that it will offer a 2-year insurance cover to its customers who purchase iPhone 6 and iPhone 6 Plus in any of its designated outlets in Kenya.   Read More

EcoCash-Western Union link up

The Western Union Company, a leader in global payment services, and Zimbabwe’s leading mobile money service provider, Econet Wireless, have teamed up to offer consumers fast and reliable international money transfers. Read More

Mobile money services must innovate to be sustainable - Tigo

Mobile money services must continually be innovating if they are to make their business sustainable in the long-run, according to Diego Gutierrez, general manager of Tigo Tanzania. Read More

Mobile money operators must take holistic approach – panel

Companies launching mobile money services were urged by panelists at AfricaCom in Cape Town to approach the market strategically and holistically if they are to be sustainable.   Read More

Ericsson supports Tigo Mobile Wallet in Senegal

Ericsson has announced that Tigo Senegal has launched Tigo Cash service based on the Ericsson Wallet Platform Solution.  Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

GSMA: half a billion mobile subscribers in SSA by 2020GSMA: half a billion mobile subscribers in SSA by 2020

The number of unique mobile subscribers in Sub-Saharan Africa will pass the half billion mark in 2020, says a new GSMA report.

IN DEPTH

Africa lags on digital migration Africa lags on digital migration

Only three African countries have so far completed the digital migration process, and serious issues are hampering the migration in other nations.  

COMPANY NEWS

Leading through volatility in Africa

For the businesses that are prepared to face the storm and manage the volatility afflicting the continent, there are still huge rewards to be had from doing business ...