Survey: revenue from P2P mobile money to double in three years – Mobile World Live

Survey: revenue from P2P mobile money to double in three years

23 JUN 2015

Juniper Research forecast revenue from mobile money transfer services will double to $4 billion in 2018, from $2 billion this year.

Africa is the leading region for P2P, or mobile remittance, payments. As evidence, the research firm points to several operators – including Vodacom Tanzania and MTN Uganda – generating more than 10 per cent of total revenue from the activity.

The success of Kenya’s Safaricom and its M-Pesa service, which generates $330 million in annual revenue, is the most notable achievement.

Surges in transaction volume and value are driven by increased interoperability, both cross-border and intra-national level, the report says. The research cites traffic uplifts from deals between Safaricom and MTN in Rwanda, as well as domestic agreements reached in Tanzania and Pakistan.

The research said operators are future-proofing their mobile money strategies by developing smartphone apps, alongside USSD and IVR-based services.

Among all the optimism, Juniper does sound a note of caution: where adoption or activity rates are low, the cause is often poor marketing, either inappropriate or badly targeted.

Operators trying to grab easy profits also comes under fire from the report. For instance, a number of operators in Nigeria failed to attract repeat business because of high cash-out fees. In other countries, savings accounts had withdrawal fees that were inappropriate for lower income users or savers.

Author

Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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