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A RECENT GSMA report has indicated that the amount of registered mobile money accounts grew by 13 per cent globally in 2020 to quite 1.2 billion – double the forecast.
The annual ‘State of the Industry Report on Mobile Money’, published Tuesday reveals that the fastest growth was in markets where governments provided significant pandemic relief to their citizens.
It said to minimise the economic toll of COVID-19, many national governments distributed monetary support to individuals and businesses, adding that the worth of government-to-person payments quadrupled during the pandemic, with the mobile money industry working hand-in-hand with administrations and NGOs to distribute social protection and humanitarian payments quickly, securely, and efficiently to those in need.
Facilitating this sort of direct income support payments is one example of how mobile money provides a financial lifeline to underserved communities. Mobile money providers have also provided in-kind support, including the distribution of private protective equipment (PPE) and hand sanitising gel at agent counters.
“We see that mobile money may be a powerful tool for expanding the financial inclusion of girls in low-and middle-income countries,” said John Giusti, the GSMA’s Chief Regulatory Officer.
“This year’s report, however, found that across markets women are still 33 per cent less likely than men to possess a mobile money account. The GSMA and its members are committed to closing this gender gap by addressing the barriers that prevent women from accessing and using mobile financial services,” MR. Giusti
Closing the gap requires a collaborative and concerted effort. Many providers have committed to increasing the proportion of female customers. One example of an innovative approach to the present is launching micro-entrepreneur products which will be utilized in markets where women represent the bulk of vendors and customers.
For the primary time, quite $1 billion was sent and received within the sort of remittances globally monthly via mobile money. Despite early fears that transactions would decline as people worldwide suffered job losses and income cuts during the pandemic, it remains clear that diasporans still support family and friends back home. As a result, the entire value of transactions increased by 65 per cent to an annual total of $12.7 billion in 2020.
The research found that the pandemic gave fresh urgency to the necessity for regulatory change to facilitate greater digitalisation. In many markets, transaction limits were increased to permit more funds to flow through mobile money. Additionally, as demand rose for non-physical payments, some regulators classified mobile money agents and their supply chains as essential services.
Over 50 per cent of mobile money agents were continuously active throughout the pandemic, which was crucial for service continuity and maintaining liquidity.