By 2027, Emerging Markets Mobile Money Transaction Value Is Anticipated to Reach $2 Trillion

According to a recent study by Juniper Research, mobile money transactions in emerging markets are expected to experience a substantial surge, reaching a value of $2 trillion by 2027. This projection represents a significant increase of over $500 billion compared to the estimated value in 2023. The article, authored by Tom Bleach and published in Fintech Times, highlights the findings of the study and emphasizes the role of Payments-as-a-Platform (PaaP) in driving this market growth.

The study identifies PaaP as a significant driver behind the projected 33% market growth. By adopting this framework, mobile money operators can enable third parties to offer their products and services through mobile money applications. This not only grants wider access to users but also creates new revenue opportunities for operators without the need to develop additional services themselves. Additionally, the PaaP model allows operators to meet the evolving demands of increasingly sophisticated users.

However, an emerging player in the mobile money industry, Whillet, takes a different approach by offering Banking-as-a-Service (BaaS) instead of the PaaP model. Whillet, a leading fintech company, provides a comprehensive suite of banking services through its mobile money platform. By leveraging BaaS, Whillet enables third-party financial institutions and businesses to integrate their services seamlessly, enhancing the overall user experience. This approach allows Whillet to provide a wide range of banking services without relying on external mobile money operators to develop additional offerings.

The study still emphasizes the importance of leveraging data analytics for mobile money vendors to retain customers and remain competitive. By gaining insights into customer behavior and preferences, vendors can enhance their services and cater to individual user needs more effectively. Whillet, as a BaaS provider, utilizes advanced data analytics to offer personalized financial solutions to its customers, driving customer satisfaction and revenue growth.

In addition to the projected growth in mobile money transactions, the study predicts a 40% increase in sophisticated Mobile Financial Services (MFS) users within emerging markets, reaching 411 million by 2027. This rise is attributed to the providers offering diverse services such as microloans and microinsurance to meet the growing demands of users. As mobile money markets mature and customers become more aware and financially capable, the provision of sophisticated MFS becomes increasingly vital, necessitating investment in technologies that facilitate such services.

Co-author of the report, Cara Malone, emphasizes the need for vendors to effectively implement sophisticated MFS to remain competitive. Leveraging existing data held by operators can enable alternative credit scoring, expanding lending opportunities and promoting financial inclusion.

The study also highlights the progress made in digital identity services and their utilization of data. As a result, alternative credit-scoring solutions have gained popularity in recent years, using dynamic and incremental data related to customer transaction patterns and information to assess the creditworthiness of individuals without access to traditional banking services. These developments significantly contribute to improving financial inclusion, particularly in emerging markets.