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Mobile Money Improves Africa’s Growth Market

December 6, 2011

Mobile Money has shown record growth across the African continent over the past few years. Safaricom’s M-PESA mobile payment service, launched in Kenya in 2007, was such a great successthat it is now one of the world’s top Mobile Money transfer services. It has set the stage for an absolute banking revolution for developing African countries such as Nigeria and Uganda. These are consumers who currently keep their savings under pillows or in their shoes, and are now being given the opportunity to secure their investments without having to visit a bank, and by simply using their mobile phones. Mobile Developments in Nigeria Nigeria has a population upwards of 140 million, with a very small percentage currently able to access financial services through mainstream institutions like banks. However, over 50% of the country has access to mobile phones, placing them in a very unique position. Mobile Money has the incredible potential to really soar in Nigeria through sheer numbers and estimated volume of transactions. Mobile Developments in Uganda Since the first network launch in 1995, the mobile market in Uganda has grown in leaps and bounds. The mass of competition led to a price war that increased consumer investment, resulting in majority of the population owning mobile phones. In an attempt to regain average revenue per user (ARPU) there has been an influx of international investment into new revenue streams. Mobile Money and m-banking (mobile banking) services are at the forefront of these new developments in Uganda, where less than 20% of the population has Internet access or bank accounts. Where To From Here? Some countries have already adopted the NFC payment system, whereby mobile phones actually take the place of credit cards and are swiped across a scanner in the same fashion. According to researchers and experts, this system should be implemented not only in African countries but world-wide, in the future and completely replace the need to carry banking cards and cash. At DStv Online we agree that this would be a great purchasing solution, especially for many of us who frequently misplace our cards!

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