adminMobile operators and banks should provide incentives to customers to drive the uptake of mobile money services, wireless communications network provider Ericsson says. Business Day reports that the rapid convergence of mobile and banking technology, which started with simple functions such as money transfer, is increasingly making the cellphone a virtual bank in itself. And, the report says, mobile money is gaining traction in many markets in Africa as millions of people without banking accounts sign up for the service.
According to global mobile network industry body GSMA, 52% of mobile-money services are in sub-Saharan Africa. Ericsson estimates that by 2016, the mobile commerce market is expected to reach $800 billion worldwide. Kenya, Uganda and Tanzania are some of the countries in Africa that are leading the pack with mobile money, the report says.
An Africa Focus report notes that the mobile money landscape is becoming increasingly competitive, and this is especially true in sub-Saharan Africa where mobile money is already available in 36 of 47 countries in the region. The report says the rapid expansion of mobile money payments trend is not limited to Kenya (M-Pesa).
It says while expansion is uneven, mobile phone companies in other countries in Africa and on other continents as well are finding this a profitable and rapidly growing business. The expansion also indicates that more and more consumers are finding it a viable alternative to dealing with conventional banks. — Business Day.
Online Reporter