Sub-Saharan Africa: A Major Potential Revenue Opportunity for Digital Payments

Abstract

Mobile financial services — often called mobile money — are a high priority for many mobile operators, financial institutions, technology firms and governments. In regions where financial inclusion is limited, such as sub- Saharan Africa (SSA), mobile money promises a lower-cost, more scalable alternative to traditional banking. Yet, despite high interest levels in SSA markets, there have been few success stories to date. This is partly due to uncertainty about whether Kenya — where M-Pesa has become one of the few mobile money success stories — is unique, or whether the potential for mobile payments in other markets is similarly robust. To cast some light on the opportunity, this article attempts to quantify some of the many highpotential payments flows in this rapidly evolving region, and to estimate the associated revenue pools.