Microfinance Services Spending Set to Surpass $22 Billion by 2030

New research from Juniper Research has found that spending on sophisticated microfinance services (MFS) by mobile money users in emerging markets would rise from $8.4 billion in 2025 to $22 billion by 2030; a 164% increase. The research identified growth in sophisticated MFS, such as microloans, microsavings, and microinsurance, as being driven by the maturation of mobile money services in key emerging markets.

“Across the Middle East, Africa, Latin America, and Asia Pacific, widespread mobile access has enabled millions of users to leapfrog traditional banking. Affordable data, Unstructured Supplementary Service Data (USSD) functionality, and interoperable digital wallets have normalised mobile transactions, creating habitual financial touchpoints for unbanked and underbanked populations. As markets mature, mobile money providers are increasingly partnering with fintechs and banks to offer sophisticated MFS – moving beyond basic payment rails,” explained Jawad Jahan, Research Analyst at Juniper Research.

Microloans are one of the fastest-growing sophisticated MFS segments, supported by improved credit risk assessments. By analyzing behavioural signals within mobile money transaction data, providers can model income stability, spending patterns, and repayment likelihood with greater accuracy. This data-led approach enables instant, low-value lending decisions at scale, while reducing default risk.

“Mobile money providers are increasingly using rich, granular data to assess the viability of microloans. This strategy is data-intensive, requiring MFS providers to develop their AI infrastructure. MFS platforms should build out their data analytics capabilities, integrate AI tools, and partner with banks for lending liquidity to maximise growth potential,” Jahan noted.