E-wallets Boom in Africa and Middle East, Accounting for 68% of Global Mobile Money Transactions
E-wallet services, accessible via mobile phones without additional apps, are booming in Africa and the Middle East. These 'staged' e-wallets, launched by telecom providers, have seen significant growth and expansion, accounting for 68% of global mobile money transaction value in 2022.
Key players in this sector include national providers from Egypt, Nigeria, Saudi Arabia, Tanzania, and the United Arab Emirates. Pioneered by M-Pesa in 2007, these services have since been joined by subsequent entrants like MTN Mobile Money and Orange Money. A total of twelve providers are highlighted, with four offering multi-country coverage, such as Airtel Money, M-Pesa, MTN Mobile Money, and Orange Money. Fintech companies like BOB Finance and TnG Sdn. Bhd. have also expanded their presence internationally through partnerships, with TnG introducing its e-wallet in a joint venture with Ant Financial from Alibaba.
The growth of e-wallets can be attributed to increased mobile phone ownership, now at 61% in Africa and 81% in the Middle East. This growth is expected to continue due to improved accessibility compared to traditional bank accounts, as the region has a large unbanked population, with only 54% bank account ownership in Africa and 38% in the Middle East.
With a significant portion of global mobile money transactions and a large unbanked population, Africa and the Middle East present a vast opportunity for e-wallet providers. As accessibility improves and competition increases, the region is poised for further growth in e-wallet usage.
