Save money by using mobile money transfers!

November 29, 2016

These are the facts: using mobile money is, on average, more than 50% cheaper than using global money transfer operators. Moreover, mobile money facilitates competition and, hence, drives down the price of remittance services.

The above info comes from a GSMA report called Driving a Price Revolution: Mobile Money in International Remittances. “Mobile money is one of the most exciting innovations in financial services, with more than 400 million registered consumer accounts across over 90 countries,” said John Giusti, Chief Regulatory Officer, GSMA. “While today mobile money services are largely used for domestic transactions, international transfers represent the fastest-growing segment of mobile money services.”

Here’s a brief overview of the report’s findings:

Using mobile money is, on average, over 50% cheaper than using global money transfer operators. In the 45 counties surveyed, the average cost of sending $200 using mobile money was 2.7%, compared to 6% using global MTOs. The low-value transactions segment is particularly competitive. Using mobile money is 58% cheaper for $50 transfers, compared to 55% cheaper for $200 transfers.

Mobile money facilitates competition and, hence, drives down the price of remittance services. The study notes that global MTOs tend to offer their services at lower prices in markets where they are in competition with mobile money providers.

Last, but not least, if you want to know where the next boom in mobile money industry will take place, look no further than Africa. Certain African countries are expected to become the hottest mobile money markets by 2020 – Ghana, Kenya and Tanzania. According to The World Bank, Ghana has a greater potential for mobile money than Kenya and Tanzania, which are considered two of the most successful markets in the world.