Market Watch

Mobile Money Services Set for Major Expansion

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A recent study by Ericsson and Juniper Research reveals significant growth prospects for the mobile financial services (MFS) sector, forecasting a surge in user engagement and transaction values by 2028. The analysis suggests a shift towards a more diverse offering in mobile money services, predicting that 40% of mobile subscribers will utilize these services by 2028, a notable increase from the current 29%.

The anticipated growth is not just in user numbers but also in the value of transactions, expected to jump by 80% within the forecast period. This upsurge aligns with a prior projection by Juniper, estimating digital wallet transactions to hit the $16 trillion mark by 2028. The sector’s expansion is attributed to the demand for advanced services beyond traditional money transfers, including loans, insurance, and buy now, pay later (BNPL) options, which are gaining traction among consumers.

Security enhancements and targeted outreach to under-served demographics, such as rural communities, women, and teenagers, are also seen as key factors in this growth. Geographically, Africa is poised to remain the dominant market, housing nearly half of the MFS user base, followed by the Asia Pacific and the Middle East regions.

Telecommunication companies stand to benefit significantly from this trend, with projections indicating a potential 45% revenue increase from MFS offerings within five years. This shift highlights the transformative impact of mobile financial services, not only enhancing telcos’ service portfolios but also opening new revenue channels.

The emphasis on MFS also reflects a strategic move for companies like Ericsson, which recently expanded its partnership with MTN to push mobile fintech solutions, showcasing the sector’s potential beyond traditional telecommunications services. Despite the underlying promotional intent, the insights from Ericsson and Juniper’s study shed light on the dynamic growth trajectory of the mobile financial services industry, underscoring its evolving role in the digital economy.

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