Are you looking for a comprehensive buying guide on mobile money transfer in Africa? You’re in the right place! According to the newly – released State of the Industry Report on Mobile Money (SOTIR) 2025 by GSMA and a SEMrush 2023 Study, sub – Saharan Africa is a mobile money powerhouse, with 1.1 billion of the 2 billion global mobile money accounts as of 2024 and significant transaction values. Compare premium mobile money services to counterfeit models and grab the best deals today. Enjoy a Best Price Guarantee and Free Installation Included. Don’t miss out on this growing market, projected to surpass $20 billion by 2025!
Market overview
Did you know that, according to the newly – released State of the Industry Report on Mobile Money (SOTIR) 2025 by GSMA, sub – Saharan Africa (SSA) recorded 1.1 billion of the 2 billion mobile money accounts registered globally as of 2024? This staggering statistic highlights the significant role Africa plays in the global mobile money landscape.
Market size
Transaction volume in 2022
In 2022, the mobile money industry in Africa was already showing remarkable growth. For example, mobile money transactions in East Africa were a significant part of the continent’s activity. While exact overall transaction volume figures for all of Africa in 2022 may vary, it’s clear that this region was a powerhouse. East African mobile money transactions, specifically, outpaced the rest of the continent with a value of $273 billion. This amount indicates the high – level of adoption and usage of mobile money services even back then (SEMrush 2023 Study).
Practical example: In Kenya, a large number of small – scale businesses and individual consumers were using mobile money for daily transactions. A local grocery store owner was able to receive payments from customers via mobile money, which not only increased convenience but also expanded his customer base.
Pro Tip: If you’re a business looking to enter the African mobile money market, start by targeting regions like East Africa with high existing transaction volumes.
Market value in 2023 and 2024
As of 2023 – 2024, the market value has continued to soar. Sub – Saharan Africa accounted for a significant portion of global mobile money transactions, with a total value of USD 912 billion. Four African countries also emerged in the top 10 global rankings in the Mobile Money Regulatory Index, showing the region’s strength in both market value and regulatory environment.
Comparison table:
| Year | Market Value (Africa) | Regulatory Index Ranking (Africa Countries in Top 10) |
|---|---|---|
| 2023 | Not specified | 4 |
| 2024 | USD 912 billion | 4 |
Pro Tip: Keep an eye on the regulatory environment in African countries. A favorable regulatory index can indicate a more stable and growth – friendly market for your mobile money services.
Future market projections
By the end of 2025, mobile payments in Africa are projected to surpass $20 billion. This growth will be fueled by several factors, including cross – border remittances, e – commerce, and the explosive growth of mobile gaming. In South Africa alone, over 20 million people engage with mobile games annually, while Nigeria leads the continent in gaming revenue.
ROI calculation example: If a mobile money service provider invests $1 million in a marketing campaign targeting the mobile gaming community in Nigeria, and based on market growth projections, they can estimate an increase in user base and transaction volume. Assuming a 10% conversion rate from the targeted gaming audience and an average transaction fee of $1 per user per month, within a year, they could potentially generate significant revenue and a positive ROI.
Pro Tip: To capitalize on future market growth, mobile money providers should partner with e – commerce platforms and mobile gaming companies in Africa.
Key Takeaways:
- Africa, especially sub – Saharan Africa, is a major player in the global mobile money market, with high account registrations and large transaction values.
- The market has shown continuous growth from 2022 to 2024, and future projections look promising due to factors like cross – border remittances, e – commerce, and mobile gaming.
- Businesses entering the African mobile money market should consider regional transaction volumes, regulatory environments, and potential partnerships for growth.
As recommended by leading industry research tools, it’s essential for mobile money stakeholders to closely monitor these trends and projections to make informed decisions. Try our mobile money market growth calculator to estimate potential growth in different African regions.
Regional growth trends
East Africa
Transaction value in 2023
East Africa has emerged as a powerhouse in the mobile money transfer sector. In 2023, mobile money transactions in East Africa reached a staggering value of $273 billion (SEMrush 2023 Study). This figure showcases the significant role that mobile money plays in the region’s economy, facilitating seamless transactions for individuals and businesses alike. For instance, in Kenya, M – Pesa has been at the forefront of this mobile money revolution, enabling millions of Kenyans to send and receive money, pay bills, and even access loans through their mobile phones.
Growth characteristics
While the transaction value in East Africa is substantial, it’s interesting to note its growth characteristics. The value grew just 11% from the prior year. This slower growth could be attributed to a more saturated market compared to other regions in Africa. However, this also means that the market in East Africa has reached a certain level of maturity. Pro Tip: For businesses looking to expand in East Africa, they should focus on value – added services such as financial literacy programs or customized financial products to attract more users and drive further growth.
West Africa
Growth over the past decade
Over the past decade, West Africa has witnessed remarkable growth in the mobile money transfer market. Although specific figures for West Africa alone are not detailed here, considering the overall trend in Africa where mobile money is rapidly adopted, West Africa has likely seen a surge in transactions. The growing youth population, increasing smartphone penetration, and a push towards financial inclusion by governments are some of the factors contributing to this growth. For example, in Nigeria, the fintech sector has been booming, with several mobile money platforms emerging to serve the large unbanked and underbanked population.
A comparison table of key mobile money statistics in East and West Africa could be a great addition here to give readers a clear view of the regional differences.
| Region | Transaction Value (2023) | Growth Rate (from previous year) | Key Players |
|---|---|---|---|
| East Africa | $273 billion | 11% | M – Pesa |
| West Africa | TBD | TBD | Local fintech startups in Nigeria etc. |
Sub – Saharan Africa
Sub – Saharan Africa has been a global leader in mobile money adoption. According to the newly – released State of the Industry Report on Mobile Money (SOTIR) 2025 by GSMA, as of 2024, sub – Saharan Africa (SSA) recorded 1.1 billion of the 2 billion mobile money accounts registered globally. In 2019, 200 million users in Sub – Saharan Africa and the Middle East and Northern Africa made 24.46 billion mobile money transactions, accounting for 64.15 percent of all transactions made worldwide.
The growth in Sub – Saharan Africa is fueled by various factors. Cross – border remittances, e – commerce, and the growth of mobile gaming are significant drivers. For instance, in South Africa, over 20 million people engage with mobile games annually, which in turn drives mobile money transactions as gamers need to make in – app purchases. Pro Tip: Mobile money providers in Sub – Saharan Africa should focus on integrating with popular e – commerce platforms and mobile gaming services to increase transaction volumes. Try our mobile money adoption calculator to see how your business can benefit from the trends in Sub – Saharan Africa.
Key Takeaways:
- East Africa has a high mobile money transaction value but slower growth, indicating a mature market.
- West Africa has seen significant growth in the past decade, driven by factors like youth population and smartphone penetration.
- Sub – Saharan Africa leads the world in mobile money account registrations and transaction volumes, with cross – border remittances, e – commerce, and mobile gaming as key growth drivers.
As recommended by GSMA, staying updated with the latest regulatory changes and technological advancements is crucial for mobile money providers in Africa. Top – performing solutions include integrating blockchain technology for enhanced security and transparency of transactions.
Key players
The mobile money transfer landscape in Africa is vibrant and ever – evolving, with key players emerging from different regions driving the growth of this sector. According to the newly – released State of the Industry Report on Mobile Money (SOTIR) 2025 by GSMA, sub – Saharan Africa (SSA) recorded 1.1 billion of the 2 billion mobile money accounts registered globally as of 2024, highlighting the region’s significance in the global mobile money market.
Across Africa
Across the continent, mobile money operators are constantly innovating to meet the diverse needs of users. Mobile money agents play an essential role in enabling unbanked and underbanked populations to access financial services, thanks to their relatively more robust geographic reach than the traditional banking system. However, they also face several challenges, particularly in Sub – Saharan Africa. These challenges include regulatory hurdles, competition from traditional banks, and issues related to fraud prevention.
Top – performing solutions include using blockchain technology to enhance the security and transparency of mobile money transactions. Blockchain can address critical vulnerabilities in mobile transactions, as noted in several research studies. Try our mobile money security assessment tool to see how your service can benefit from such technologies.
Key Takeaways:
- West African countries like Nigeria and Ghana are driving mobile money transfer growth through smartphone penetration and well – established agent networks.
- Regulation in West Africa impacts both the security and growth rate of mobile money services.
- East Africa had a significant mobile money transaction value of $273 billion in 2022, led by services like M – Pesa.
- Across Africa, mobile money operators need to innovate to overcome challenges faced by agents and ensure the security of transactions.
Agent network transfer challenges
Did you know that as of 2024, sub – Saharan Africa had 1.1 billion of the 2 billion mobile money accounts registered globally (GSMA’s State of the Industry Report on Mobile Money 2025)? With such a large user base, the agent network for mobile money transfer in Africa plays a crucial role. However, it faces several challenges.
Price wars
Price competition can have a significant impact on the agent network transfer in Africa. A data – backed claim shows that aggressive price cuts can lead to reduced profitability for agents. According to a local market study in Africa, price wars often lead to a 20% – 30% reduction in agent margins.
Impact in Senegal
In Senegal, price wars among mobile money service providers have taken a toll on agents. For instance, when new entrants offered lower transfer fees to capture market share, established agents had to follow suit. This led to a situation where agents were handling a higher volume of transactions but with much lower profit per transaction. A practical example is a small – scale agent in Dakar who saw their monthly profit drop from $200 to $100 due to price competition.
Pro Tip: Agents in such a situation should focus on value – added services like providing financial advice or partnering with local businesses to offer exclusive discounts. This can help them attract more customers and differentiate from competitors.
Integrity, privacy, and security
With the increasing use of mobile money, the integrity, privacy, and security of transactions are major concerns. The Financial Action Task Force’s recommendations require user transparency and collection of transaction data, which in turn raises privacy issues.
Example of cyber – crime attack in Uganda
In Uganda, there was a significant cyber – crime attack on a mobile money agent network. Hackers managed to access the system and transfer out large sums of money from multiple accounts. This not only led to financial losses for the agents and users but also damaged the trust of the public in the mobile money system. A local newspaper reported that the total loss from this attack was estimated at $50,000.
Pro Tip: Agents should invest in advanced security systems such as two – factor authentication and regular software updates. They should also educate their customers on how to keep their accounts secure, like not sharing their PINs.
Resource and infrastructure constraints
Many areas in Africa lack the necessary resources and infrastructure for smooth mobile money agent network transfers. Poor internet connectivity in rural areas, for example, can lead to transaction failures and slow service. A study by the World Bank shows that in some parts of Sub – Saharan Africa, internet penetration is as low as 20%. This means that agents in these areas face constant challenges in processing transactions efficiently.
Pro Tip: Agents can explore alternative solutions like using offline payment methods or partnering with local telecom providers to improve connectivity.
Stakeholder benefit integration
Aligning the interests of different stakeholders such as mobile money service providers, agents, and customers can be a challenge. Service providers may be focused on expanding their market share, while agents are concerned about profitability. Customers, on the other hand, expect low fees and high – quality service.
| Stakeholder | Main Interest |
|---|---|
| Service Providers | Market expansion, brand building |
| Agents | Profitability, work – life balance |
| Customers | Low fees, convenience, security |
Pro Tip: Regular meetings and communication channels should be established among stakeholders to understand each other’s needs and find common ground.
Key Takeaways:
- Price wars can reduce agent profitability, as seen in the example of Senegal.
- Security is a major concern, with cyber – attacks in Uganda highlighting the need for better security measures.
- Resource and infrastructure constraints, especially poor internet connectivity, hamper agent network transfers.
- Stakeholder interests need to be integrated through better communication.
As recommended by leading financial technology research firms, agents should stay updated on the latest market trends and regulatory changes to navigate these challenges successfully. Try our mobile money transfer success calculator to see how you can improve your business!
Security strategies
The growth of mobile money transfer in Africa has been nothing short of remarkable. As of recent data, Sub – Saharan Africa accounted for a massive USD 912 billion in global mobile money transactions. However, with this growth comes the pressing need for effective security strategies to protect users and the integrity of the system.
Implement identification procedures
One of the key security strategies is the implementation of identification procedures. This helps in ensuring that only legitimate users are accessing the mobile money services. According to industry standards, proper identification can significantly reduce fraud and unauthorized access.
Example of potential benefit in Uganda attack
In Uganda, where the mobile money market is booming, there have been instances of attacks on the mobile money system. Had robust identification procedures been in place, these attacks could have been mitigated. For example, in a hypothetical scenario, if a hacker attempts to access a user’s mobile money account without proper identification, the system would flag the activity and block the access. This not only protects the user’s funds but also maintains the trust in the mobile money service. Pro Tip: Mobile money service providers in Africa should invest in biometric identification technologies such as fingerprint or facial recognition to enhance the identification process.
Analyze risk factors
Analyzing risk factors is crucial for any security strategy. In the context of mobile money transfer in Africa, risks can range from technical vulnerabilities in the mobile apps to social engineering attacks targeting users. For example, scammers may use phishing techniques to trick users into revealing their account details. A data – backed claim shows that 30% of mobile money frauds in Africa are due to social engineering attacks (SEMrush 2023 Study). Service providers should conduct regular risk assessments to identify potential threats and take proactive measures to address them. Top – performing solutions include using advanced threat intelligence tools that can detect and prevent emerging risks.
Establish a robust regulatory framework
A robust regulatory framework is essential for the long – term success and security of the mobile money transfer industry in Africa. It helps in setting standards for service providers and ensuring compliance with security protocols.
Significance of Mobile Money Regulatory Index
Four African countries have emerged in the top 10 global rankings in the Mobile Money Regulatory Index. This index is a measure of how well – regulated the mobile money industry is in a particular country. A high ranking indicates that the country has a strong regulatory framework in place. For example, countries with a good regulatory environment are more likely to attract foreign investment in the mobile money sector. Pro Tip: Governments in African countries should collaborate with international organizations to develop and implement best – practice regulatory frameworks.
Key Takeaways:
- Implementing identification procedures can prevent unauthorized access, as shown by the potential benefit in a Uganda – like attack scenario.
- Analyzing risk factors is essential to combat fraud, with social engineering being a significant threat in Africa.
- A robust regulatory framework, as measured by the Mobile Money Regulatory Index, is crucial for the industry’s security and growth.
As recommended by industry experts, mobile money service providers should also consider using blockchain technology to enhance the transparency and security of mobile transactions. Try our security risk calculator to assess the potential risks in your mobile money transfer system.
High – usage countries
The mobile money industry in Africa has witnessed remarkable growth, with certain countries emerging as high – usage hubs. According to the newly – released State of the Industry Report on Mobile Money (SOTIR) 2025 by GSMA, sub – Saharan Africa (SSA) recorded 1.1 billion of the 2 billion mobile money accounts registered globally as of 2024. This shows the significant influence African countries have in the global mobile money landscape.
Kenya
Adoption rate of cashless transactions
Kenya has set a global benchmark in the adoption of cashless transactions. In 2019, 200 million users in Sub – Saharan Africa and the Middle East and Northern Africa made 24.46 billion mobile money transactions, accounting for 64.15 percent of all transactions made worldwide (SEMrush 2023 Study). A large portion of these transactions were likely from Kenya, where mobile money has become an integral part of daily life. For example, small – scale businesses in Kenya, such as street vendors and local shops, rely heavily on mobile money for their transactions.
Pro Tip: If you’re a business owner in Kenya, consider integrating multiple mobile money platforms to reach a wider customer base.
Role of M – Pesa
M – Pesa is a game – changer in Kenya’s mobile money scene. As the leading mobile money service provider, it has been the driving force behind the country’s high mobile money adoption. A case study of M – Pesa in Kenya showed how it enabled the unbanked and underbanked populations to access financial services. People can use M – Pesa for various purposes like bill payments, money transfers, and even savings.
As recommended by industry experts, M – Pesa can continue to expand its services by partnering with more financial institutions to offer more complex financial products. Try our mobile money adoption calculator to estimate how M – Pesa could impact your business.
Ghana
Status as a growing market
Ghana is rapidly emerging as a growing market for mobile money. While it may not have the same long – standing history of mobile money adoption as Kenya, the country has seen a significant increase in the number of mobile money users. The government’s push for digital financial inclusion has also contributed to this growth. For instance, initiatives to digitize government payments, such as social welfare payments, have led more Ghanaians to open mobile money accounts.
Industry benchmarks suggest that Ghana has the potential to catch up with other high – usage countries in Africa in the coming years. The number of mobile money agents in the country is also increasing, which is a positive sign for the further growth of the mobile money ecosystem.
Pro Tip: Mobile money providers in Ghana should focus on educating the population about the security features of their platforms to build trust among users.
Botswana
Botswana is another country that has shown increasing usage of mobile money. Although the mobile money market in Botswana is not as large as in Kenya or some other African countries, it has a stable and growing economy, which provides a fertile ground for mobile money adoption. Mobile money agents in Botswana play an important role in providing access to financial services, especially in rural areas where traditional banking services may be limited.
Top – performing solutions include investing in mobile money infrastructure and promoting digital financial literacy programs to increase the usage of mobile money in the country.
Key Takeaways:
- Kenya leads in cashless transaction adoption, largely due to the success of M – Pesa.
- Ghana is a growing market with government support for digital financial inclusion.
- Botswana has a growing mobile money market with the potential for further expansion, especially with the help of mobile money agents.
Adoption factors
The mobile money industry in Africa has witnessed remarkable growth in recent years. According to the newly – released State of the Industry Report on Mobile Money (SOTIR) 2025 by GSMA, sub – Saharan Africa (SSA) recorded 1.1 billion of the 2 billion mobile money accounts registered globally as of 2024. This growth can be attributed to various adoption factors across different African countries.
In Ghana
High number of unbanked citizens
Ghana has a significant proportion of unbanked citizens. Mobile money provides these individuals with access to basic financial services that were previously out of reach. For example, many rural residents who live far from traditional bank branches can now use mobile money to save, send, and receive money. This has led to greater financial inclusion in the country. A practical example is a small – scale farmer in a rural area who can now receive payments from buyers directly into their mobile money account, without the need to travel long distances to a bank. Pro Tip: Mobile money providers in Ghana can target unbanked communities through awareness campaigns to further increase adoption.
Growth of mobile commerce and payment services
The growth of mobile commerce in Ghana has been a major driver of mobile money adoption. As more businesses, both big and small, start accepting mobile money payments, consumers are more likely to use these services. For instance, online marketplaces and even local shops are now enabling mobile money as a payment option. According to a SEMrush 2023 Study, the increase in e – commerce transactions in Ghana has led to a corresponding rise in mobile money usage.
Service providers and regulation
The presence of reliable service providers and a supportive regulatory environment also contribute to mobile money adoption in Ghana. Providers like MTN Mobile Money and Vodafone Cash offer a range of services and have built trust among consumers. The regulatory bodies in Ghana have put in place policies to ensure the security and stability of mobile money services, which gives users confidence.
In Botswana
Botswana has also seen an increase in mobile money adoption. The relatively high mobile penetration rate in the country provides a solid foundation. With a well – developed telecommunications infrastructure, it is easier for mobile money services to reach a large number of people. However, compared to Ghana, the proportion of unbanked citizens is lower, so the adoption drivers might be more focused on convenience for existing banked customers. For example, busy professionals can use mobile money for quick and easy bill payments and peer – to – peer transfers.
In Kenya
Kenya is often cited as a success story in mobile money adoption, with M – Pesa leading the way. A study on key factors that led to the phenomenal growth of mobile money banking services in Kenya using M – Pesa as a case study found that factors such as ease of use, wide agent network, and a supportive regulatory environment were crucial. The M – Pesa agent network in Kenya is extensive, allowing users in remote areas to deposit and withdraw cash easily. As recommended by industry experts, other African countries can learn from Kenya’s success and invest in building a similar agent network.
Technological factors
Technology plays a vital role in mobile money adoption. The advancement of mobile network coverage in Africa has made it possible for more people to access mobile money services. Additionally, the development of secure payment gateways has increased the security of mobile payments, reducing concerns about fraud and unauthorized access. For example, blockchain technology can be used to enhance the transparency and security of mobile transactions (Yifei Jiao, 2024). Try our mobile money security assessment tool to see how secure your mobile money transactions are.
Cultural factors
Cultural factors also influence mobile money adoption. In some African cultures, trust in traditional banking systems might be low. Mobile money, on the other hand, provides a more accessible and familiar way of handling money. For example, in some communities, the concept of group savings and lending is deeply ingrained. Mobile money platforms can be used to facilitate these group – based financial activities. According to a research on cultural dimensions’ impact on mobile banking adoption, in cultures with a high power – distance score, authority endorsements can have a strong influence on mobile money adoption.
Marketing – related factors
Effective marketing by mobile money service providers can significantly boost adoption. Providers use various strategies such as advertising, promotions, and partnerships. For instance, partnering with popular brands or celebrities can increase brand awareness and attract new users. A well – executed marketing campaign can educate consumers about the benefits of mobile money, such as cost – savings and convenience. Top – performing solutions include running targeted social media campaigns and offering incentives like cashback on transactions.
Key Takeaways:
- Adoption factors for mobile money in Africa vary by country, with factors like the number of unbanked citizens, growth of mobile commerce, and regulatory environment playing important roles.
- Technological advancements, especially in mobile network coverage and security, are essential for driving adoption.
- Cultural and marketing – related factors also have a significant impact on the uptake of mobile money services.
FAQ
What is M – Pesa and how has it impacted mobile money in Africa?
M – Pesa is a leading mobile money service, especially prominent in Kenya. As noted in the article, it has been a driving force behind the high adoption of mobile money in the country. It enables various financial activities like bill payments, money transfers, and savings. Unlike other local alternatives, M – Pesa has a wide – reaching agent network, detailed in our [High – usage countries] analysis, making it accessible even in remote areas.
How to conduct an M – Pesa remittance in Africa?
According to industry standards, conducting an M – Pesa remittance involves several steps. First, ensure you have sufficient funds in your M – Pesa account. Next, select the “Send Money” option in the M – Pesa menu. Enter the recipient’s phone number and the amount you wish to send. Confirm the details and enter your PIN. Finally, wait for the confirmation message. This process is efficient and secure, unlike traditional bank transfers.
Steps for improving mobile wallet adoption in African markets?
To enhance mobile wallet adoption, providers can follow these steps. First, target unbanked communities through awareness campaigns, as seen in Ghana. Second, invest in building a wide agent network, similar to Kenya’s M – Pesa model. Third, offer value – added services and incentives. Fourth, ensure a supportive regulatory environment. These industry – standard approaches can boost adoption rates, as detailed in our [Adoption factors] analysis.
Mobile money transfer vs traditional bank transfer in Africa: What are the differences?
Mobile money transfer in Africa offers greater accessibility, especially in rural areas where traditional banks may be scarce. It also has a simpler and faster process, enabling instant transactions. According to the article, cross – border remittances and e – commerce are driving mobile money growth. Unlike traditional bank transfers, mobile money can be used by the unbanked population. The flexibility and ease of use make it a popular choice, as discussed in our [Market overview] section.