Mobile Money in Africa
According to World Bank, remittance is a big business for 250 million immigrant laborers in the world. In 2013, 20% of GDP came from remittance in Gambia, Riveria, and Comores. However, most of the immigrants don’t have bank account.
People make transactions among families and friends. People working cities will send their salaries to families in rural area. Before this digital platform, they had to travel to their home with cash or send remittance.
Moreover, Safaricom in Kenya has 75% market share evolved into a trusted national brand and was successful in expanding the mobile business. Not only does the payment service covers, transaction of salary, utility, social benefits, doctor, and subsidies. Safaricom’s M-pesa text message allows to pay micro finance loans as well.
It is said that Safaricom’s success owes to the fact that 70% of Kenyans’ possess phones and only 30% bank accounts. Most people had no resistance in using the mobile finance system.
Currently, there are more than a billion registered users and 300 mobile money systems in 96 countries.