What Will Be the Hottest Mobile Money Market in the World by 2020?

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The Consultative Group to Assist the Poor (CGAP) have released a report on mobile money momentum in African countries, emphasizing Ghana, Kenya and Tanzania as the most successful mobile money markets in the world.

According to the report, 17% of Ghana’s 27.3 million citizens have a mobile money account, which has doubled from 2014. Ghana demonstrated a rapid growth of mobile money and a potential to become the world’s most successful mobile money market moving previous leaders.

Moreover, 92% of adults in Ghana have the required ID necessary to open an account and 91% of Ghanaians own a mobile phone. As stated by The World Bank, Ghana has an even greater potential for mobile money than Kenya and Tanzania, which are considered two of the most successful markets in the world.

Great opportunities for FinTech companies in the following four countries are predicted by the fact that in three of them less than half of the population is financially included.

Kenya has the highest rate of financially included population of 65% while the lowest is held by Rwanda (37%). The vast majority of Ghanaians and Rwandans are not served by traditional financial industry players, which provides an opportunity for FinTech entrants which is hard to overestimate.

As financial inclusion in the four countries clearly has room for improvement, the mobile money market also represents an outstanding opportunity in all given countries, especially in Rwanda and Ghana, where only 17% of population have active mobile money accounts even though the vast majority meets the requirements.

Mobile money can deliver financial inclusion benefits only if a range of certain services is offered by providers and used by customers. According to CGAO, across Kenya, Tanzania, Rwanda and Ghana, people list domestic remittances as their top reason for starting to use mobile money (45%).

For rural population living on less than $2.5 per day, mobile money is emerging as a common source of financial inclusion. In Ghana, rural access has doubled since 2010, and in Rwanda, people living below the poverty line are more likely to be active mobile money users than those with higher income, as stated by CGAP.

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