Dubai: The year 2014 saw a steep increase in the number of international remittances via mobile money, primarily driven by the introduction of a new model as both the sending and receiving channel, according to latest Groupe Speciale Mobile Association (GSMA) Mobile Money Intelligence report.
GSMA is an association of mobile operators and related companies devoted to supporting the standardising, deployment and promotion of the GSM mobile telephone system globally.
The number of registered mobile money accounts globally grew to reach just under 300 million last year. Out of this, 103 million were active mobile money users. In 2013 it was 60 million active mobile money users.
The report stated that there is still a huge potential for future growth; however, as these accounts only represent 8 per cent of mobile connections in the markets where mobile money services are available.
Last year, seven new markets joined the ranks of countries where there are more mobile money accounts than bank accounts. Sixteen markets now hold this status, indicating that mobile money remains a key enabler of financial inclusion.
“The industry is getting smarter about what it takes to prompt mobile money adoption. 21 services now have more than 1 million active accounts,” the report said.
Ismail Ahmad, founder and CEO of WorldRemit, said that the rapid growth of mobile money services represents one of the biggest enlargements of participation in the global financial system, ever. International remittances are highlighted as one of the main sources of incoming funds to mobile money.
“2014 saw a steep increase in the number of international remittances via mobile money, primarily driven by the introduction of a new model using mobile money as both the sending and receiving channel.”
“We understand the life opportunities that are unlocked when people have the ability to receive, spend and save money via a mobile device,” he said.
Mobile money is helping to reduce the costs of international remittances for users: survey respondents reported that the median cost of sending $100 (Dh367) via mobile money is $4, less than half the average cost to send money globally via traditional money transfer channels.
With 255 services in 89 countries as of December 2014, mobile money is now available in 61 per cent of developing markets.
In the past five years, mobile money services have spread across much of Africa, Asia, Latin America, Europe and the Middle East. As of December 2014, there were 255 live mobile money services in 89 markets compared with 233 live services across 83 markets at the end of 2013.
There were 37.9 million registered accounts in the Middle East and North Africa. Out of this, 8.5 million were active accounts.
“Regulators are increasingly recognising the major role that non-bank mobile money providers can play in fostering financial inclusion and are establishing more enabling regulatory frameworks for the provision of mobile money services,” report said.
