Mobile money spend in emerging markets on course for 51% growth to $2.37trn by 2029

Joy Agwunobi

Mobile money spend in emerging markets is set to soar to $2.37 trillion by 2029, representing a 51 percent increase from the current figure of $1.58 trillion, as projected in a new Juniper Research study.

The Juniper study, titled “Mobile Money in Emerging Markets 2024-2029″, predicted the increase to be primarily driven by mobile network operators diversifying their mobile money offerings beyond basic transfers. This is as they provide more advanced and higher-margin services such as enabling merchant payments in physical stores and online, as well as facilitating international remittances.

Mobile money, which is also known as  e-wallets, enables users to store and manage funds on their mobile devices, bridging the financial divide in regions with limited or non-existent traditional banking infrastructure.

Its impact extends beyond financial transactions as explained by an Ericsson and Juniper Research survey titled “What Will Drive Mobile Financial Services’ Growth?”, which revealed that mobile network operators will see an increase in the number of mobile financial service users over the next five years, rising from 29 percent  to 40 percent.

The Juniper Research suite provided a comprehensive assessment of mobile money in emerging markets, featuring market analysis, extensive statistics, and Competitor Leaderboards. The data covered key sectors like microinsurance, microloans, microsavings, and mobile money transfers, along with various transaction types including airtime top-up, bill payment, cash in, cash out, merchant payment  and both domestic and international P2P transfers.

The report explores the mobile money landscape in detail, assessing current trends and factors shaping the market. These include the growing shift to advanced services, the use of AI and machine learning to unlock new capabilities, and the impact of new payment types such as Central Bank Digital Currencies (CBDCs).

According to the report, pivoting to advanced services will allow Mobile Financial Services (MFS) providers to reduce their reliance on revenue from P2P transactions. This shift will enable significant growth in operator revenue streams but will require mobile money providers to develop new capabilities, such as app-based service delivery and credit scoring.

Over the past few years, digital finance has become increasingly important in emerging economies. This sector encompasses a wide range of activities, including mobile payments, card issuance, and loans, and it reaches clients who often have limited financial literacy. The rise of mobile and digital banking has enabled millions of Africans to access financial services in areas where traditional banking networks are unavailable. According to Juniper Research, this trend is particularly evident in their detailed analysis of the growing impact of mobile money in emerging markets.

However, despite the promising growth, the research identified major challenges for mobile money providers in offering advanced services. It noted that  transitioning from basic Unstructured Supplementary Service Data (USSD) services to fully app-based experiences presents a major challenge. The report suggested that effective partnerships with digital wallet platform providers are critical for increasing reach across different access channels and revolutionising service offerings.

Mélissa Amouny, the report’s co-author, explains:”As banks struggle with the distribution of financial services in emerging markets, mobile money services excel via their agent networks.

“Partnerships between banks and mobile money services are a strong fit. MFS providers must collaborate with banks to offer the necessary capabilities and with platform providers to enhance their technical infrastructures to best address the advanced services opportunity.”