KUALA LUMPUR (Dec 6): A new study from Juniper Research has found that the total value of mobile money transactions in emerging markets will exceed US$870 billion in 2026, up from US$555 billion in 2021; representing growth of almost 60%. (US$1=RM4.232)
Mobile money in emerging markets includes microinsurance, microloans, microsavings and mobile money transfer.
This growth will be driven by the transition of mobile money vendors, such as M-PESA, to the PaaP (Payments-as-a-Platform) model. This model enables mobile money vendors to offer their users access to third-party services such as eCommerce; creating additional revenue streams.
The research identified PaaP as critical to increasing revenue for mobile money vendors, as smartphone adoption and user expectations grow. The new research recommends that mobile money vendors focus on building their ecosystems now by agreeing merchant partnerships to correctly leverage this opportunity.
According to a statement, the new research, "Mobile Money in Emerging Markets: Segment Analysis, Vendor Strategies & Market Forecasts 2021-2026", found that microloans will be the fastest-growing segment within mobile money, with growth of over 180% over the next five years.
The research identified microloans as a key way in which mobile money service providers can increase their revenue by delivering banking-like services.
The research found that Africa and the Middle East will dominate mobile money transaction values over the next five years; accounting for 56% of the global emerging markets value by 2026.
It recommends that vendors in Africa focus on expanding sophisticated mobile money services such as microinsurance and microsavings, in order to best address this rapidly growing opportunity.