Mobile Money Transactions to Exceed $870 Billion in Emerging Markets by 2026

The total value of mobile money transactions in emerging markets will exceed $870 billion in 2026, up from $555 billion in 2021; representing a growth of almost 60%, according to a new study from Juniper Research. Mobile money in emerging markets includes microinsurance, microloans, micro-savings, and mobile money transfer.

This growth will be driven by the transition of mobile money vendors, such as M-PESA, to the PaaP (Payments-as-a-Platform) model. This model enables mobile money vendors to offer their users access to third-party services such as eCommerce; creating additional revenue streams. The research identified PaaP as critical to increasing revenue for mobile money vendors, as smartphone adoption and user expectations grow.

The new research recommends that mobile money vendors focus on building their ecosystems now by agreeing on merchant partnerships to correctly leverage this opportunity. Microloans will be the fastest-growing segment within mobile money, with a growth of over 180% over the next five years. The research identified microloans as a key way in which mobile money service providers can increase their revenue by delivering banking-like services.

“While microloans are, by their very nature, small-scale, they are growing rapidly by enabling users to access credit as financial inclusion rises. By offering these services to users, mobile money services can pre‑empt competition from banks, while increasing their average revenue per user; creating a virtuous circle,“ explained research co-author Damla Sat.

The research found that Africa and the Middle East will dominate mobile money transaction values over the next 5 years; accounting for 56% of the global emerging markets value by 2026. It recommends that vendors in Africa focus on expanding sophisticated mobile money services, such as microinsurance and micro-savings, to best address this rapidly growing opportunity.