Credit Unions Grow Despite Regulatory Challenges

by Edward O'Brien 0

Mobile money continues to experience robust growth, according to the results of the GSMA’s second annual survey which tracks developments across the international mobile-payments segment.

In June 2012 alone, more than 30 million consumers worldwide used their mobile phones to conduct some 225 million transactions worth more than $4.5 billion. That was up from 141.8 million transactions in 2011. African experienced the most growth with some 60 million registered mobile-money users double the number of Facebook users there) and 34 of the 47 countries in sub-Saharan region providing such services.

While the uptick in the number of users is promising, the survey found the mobile money market is becoming increasingly competitive with 40 markets maintaining at least two different players. But competition benefits customers and in Kenya, Madagascar, Tanzania and Uganda there are more mobile money accounts than traditional checking accounts.

Chris Locke, Managing Director, GSMA Mobile for Development said in the survey’s press release that:

“As the mobile money industry is maturing, we can expect to see both the social and financial benefits of mobile money increase and will continue to track this fantastic progress.”

It is no industry secret mobile payments are rapidly growing as part of the wider payment instrument ecosystem and the GSMA survey only serves to underscore notion. Perhaps the most interesting findings of the survey are the deep penetration levels of mobile payment systems among populations that are generally underbanked (sub-Saharan Africa), the success of these programs may offer better strategies for financial institutions to more effectively reach out to underbanked and unbanked consumers in developed countries.

Click here to read more from the GSMA.