Mobile money services include microinsurance, microloans, microsavings, and mobile money transfer.

According to Juniper Research, the growth will be driven by the transition of mobile money vendors such as M-Pesa to the PaaP (payments-as-a-platform) model, which enables money vendors to offer their users access to third-party services such as e-commerce. This will create additional revenue streams.

Juniper Research identifies PaaP as critical to grow mobile money revenue. It recommends that vendors should focus on building their ecosystems now by agreeing to merchant partnerships to leverage this opportunity.

Microloans represent the fastest-growing segment
Microloans will be the fastest growing segment within mobile money recording a 180% growth over the next five years, according to Mobile Money in Emerging Markets: Segment Analysis, Vendor Strategies & Market Forecasts 2021-2026. Mobile money service providers can utilise microloans to increase their revenue by delivering banking-like services.

“While microloans are, by their very nature, small-scale, they are growing rapidly in significance, by enabling users to access credit as financial inclusion rises. By offering these services to users, mobile money services can pre‑empt competition from banks, while increasing their average revenue per user, creating a virtuous circle,” research co-author Damla Sat explains.

Africa and Middle East
Africa and the Middle East will lead mobile money transactions for the next five years, accounting for 56% of the global emerging markets value by 2026. The study suggests that African vendors focus on expanding mobile money services such as microinsurance and microsavings to capitalise on the opportunity.