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Mobile money payments have transformed how people transact in Africa, especially in rural areas with limited access to traditional banking services. In this article, we’ll delve deeper into the concept of mobile money payments, the top mobile money services available in the region, how it drives financial inclusion in Africa, and how businesses can benefit from AZA Finance’s mobile payout options.
What is Mobile Money?
Mobile money is a form of digital payment that allows users to send and receive money using their mobile phones. The service enables users to store money in a digital wallet, which they can use to pay for goods and services, transfer funds, pay bills, and even withdraw cash from authorized agents.
Mobile money has become a game-changer in Africa, where over 60% of the population is unbanked. The service has provided a way for people to access financial services that were previously out of reach, especially in rural areas. The convenience and accessibility of mobile money have also helped to boost economic growth by enabling businesses and individuals to transact more easily and efficiently.
Top Mobile Money Services in Africa
M-Pesa, Orange Money, MTN Mobile Money, and Airtel Money are some of the top mobile money services available in Africa, with millions of users across the continent. According to statista, these four mobile money services account for a significant market share, especially as over 144 mobile money providers operate in Sub-Saharan Africa. These services allow users to send and receive money, pay bills, and purchase airtime and other digital products.
How Mobile Money is fostering financial inclusion in Africa
Mobile money payments have played a crucial role in fostering financial inclusion in Africa, especially for the unbanked population. The service has enabled people to access financial services, which were previously out of reach, and provided a way for them to save, invest and access credit. Mobile money payments have also provided a way for businesses to provide financial services to individuals, boosting economic growth.
According to the GSM Association’s (GSMA’s) State of the Industry Report on Mobile Money 2023, globally, there are 1.6 billion registered mobile money accounts, growing 13% year-over-year (YoY) in 2022, and 781 million of those are in Africa, with accounts on the continent spiking 17% YoY. Total transaction values also grew 22% between 2021 and 2022 to US$1.26 trillion.
Mats Granryd, director general of the GSMA, echoes the role mobile money has played in fostering financial inclusion in Africa in the quote – “It is clear that mobile money is driving financial inclusion worldwide. As it continues to grow, it offers an incredible opportunity to reach the 1.4 billion people who still do not have access to financial services. As we work towards a sustainable and resilient future in which everyone is connected, it is vital that we also keep working on designing safe and secure financial services for all.”
AZA Finance and Mobile Money Payments
AZA Finance is a global provider of cross-border payment solutions with over 10 years of experience in the industry. We specialize in facilitating transparent, efficient, and secure transactions across 115+ markets through our robust API and intuitive web platform.
With our extensive network, we empower businesses to make payments into over 600 million e-wallets worldwide effortlessly. Through strategic partnerships with renowned mobile money providers, we have made it easier for businesses to make payments into mobile money accounts in Africa and other regions. Our mobile money payout option ensures a seamless and secure payment experience, enabling businesses to pay suppliers, employees, and contractors efficiently.
Conclusion
Mobile money payments have transformed the payments landscape in Africa, allowing people to access financial services and transact more easily and efficiently. The industry has grown significantly, with over 600 million registered mobile money accounts across the continent.
AZA Finance enables businesses to make payments into mobile money accounts in Africa and other regions, fostering financial inclusion and boosting economic growth. As more people continue to embrace mobile money payments, it is expected that the service will become even more significant in driving financial inclusion and economic growth in Africa.
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