According to the latest research report by Juniper Research, Mobile Money Transaction values will exceed $870B in emerging markets as the Payments-as‑a‑platform Model Accelerates by 2026 from $555B in 2021 which shows an exceeding growth of about 60%.
The detailed assessment report on how mobile money transaction is currently boosting financial inclusion in emerging markets splits by four(4) key regions which include Africa & Middle East, Indian Subcontinent, Latin America, and the rest of Asia Pacific.
The major focus of the research was on the 4 significant segments of mobile money usage proving Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis for these and an extensive future market outlook.
The forecasts and the SWOT analysis in the research report focus on the following segments: Microinsurance, Microloans, Micro savings, and Mobile Money Transfer.
This growth stated by the research report will be initiated by the transformation of mobile money vendors like M-PESA, to Payment-as-a-platform (PaaP) model. The PaaP model allows its users access to third-party services like eCommerce and the creation of additional streams of revenue.
PaaP model is identified to play a critical role in a revenue increase for mobile money vendors as user expectations are on the rise as well as smartphone adoption. The report also recommends that mobile money vendors should leverage the opportunity of merchant partnerships to focus on building their ecosystem now.
Microloans Represent Fastest-growing Segment
The new research report shows that microloans will be the fastest-growing segment within mobile money having over 180% growth in the next 5 years. The research identified microloan as a lead for mobile money service providers to increase their revenue by offering banking-like services. Research and co-author Damla Sat also stated that:
“Microloans are by their nature small-scaled, they are significantly growing rapidly enabling users access to credit such as financial inclusion rises. By offering users these services, mobile money services can pre‑empt competition from banks, while increasing their average revenue per user thereby creating a virtuous circle.”
Africa & Middle East Leading Mobile Money Development
The research has unveiled that Africa and the Middle East are in the limelight to dominate mobile money transactions values in the next five(5) years thereby accounting for about 56% of the global emerging market values by 2026.
It is recommended that African Vendors focus on expanding revolutionary mobile money services like micro-savings, microinsurance so as to harness the rapidly growing opportunity.
Mobile Money in Emerging Markets market research: https://www.juniperresearch.com/researchstore/fintech-payments/mobile-money-services-research-report
Download the whitepaper: https://www.juniperresearch.com/whitepapers/the-new-wave-of-fintech-innovation-in-emerging