South Africa: Telcos Are Well Positioned to Capitalise On Their Huge Bet On Mobile Money

analysis

MTN is unbundling its fintech business - this and other investment activity in the sector suggest that for telcos, mobile payments is the growth opportunity of the decade.

First published in the Daily Maverick 168 weekly newspaper.

If 2020 and Covid-19 taught us anything, it is that the shift from cash to digital forms of payment is accelerating at a rate not seen before, and is set to continue. Last year, the number of registered mobile money accounts topped 1.2 billion, 548 million of which are in Africa. At the same time, the number of accounts that are active on a monthly basis topped 300 million, 159 million of which are in sub-Saharan Africa.

And while it took nearly a decade for the mobile industry to reach its first 100 million (active) mobile money accounts it took just more than five years to add another 200 million. These are some of the numbers included in the GSMA's latest "State of the Industry Report on Mobile Money".

Telecoms providers MTN, Vodacom and Airtel, sitting plumb in the middle of this opportunity, are beginning to reorganise themselves to capitalise further, and investors are paying attention.

"The opportunity in mobile money is massive...

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 900 reports a day from more than 130 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.