Wednesday, September 29, 2021

Use of mobile financial services triples six years in Nigeria, others

By Adeyemi Adepetun
•70% of consumers in SSA hinge mobile money use on faster transactions
• Covid-19 pandemic has accelerated the use of mobile financial services

Mobile financial services have tripled in Nigeria and other sub-Saharan African (SSA) countries in the last six years, according to a new report by Ericsson.

The consumer and market insight report titled: “Mobile Financial Services on the Rise”, revealed that nearly half of all consumers in SSA use mobile financial services in 2021 –more-than three-fold increase in the last six years.

The report also highlighted the impact of the COVID- 19 pandemic on mobile financial services uptake, with 54 per cent of consumers saying that they use mobile financial services transactions more now.

About 70 per cent, according to Ericsson are more positive towards mobile financial services as a preferred contactless alternate to cash.

The report surveyed 3,200 consumers across six Sub-Saharan African countries – Senegal, Angola, Nigeria, Ivory Coast, Ghana, and Ethiopia – to assess the growth of mobile financial services in light of technology and infrastructure gains across the region, as well as the COVID-19 pandemic impact on financial behavior.

Findings revealed that users list faster transactions as the number one factor that would encourage them to use mobile money services more often in the near future. About 70 per cent believe that faster transactions would encourage them to use mobile money services more while 51 percent highlighted higher security.

Most non-users are now aware of mobile financial services, with as many as 8-in-10 saying they are very interested in using it.

Vice President and Head of Digital Services, Ericsson Middle East and Africa, Lucky La Riccia, said: “this new research underlines the significant empowering role that mobile financial services play in Sub-Saharan Africa, both in combating the impact of the pandemic and in fuelling economic development across Africa through the transformational potential of expanded and affordable access to financial solutions.

“Our aim is to support the digitalization of Africa through technologies such as mobile broadband. Ericsson’s mobile financial solutions support this aim as we accelerate financial inclusion.”

The report found out that Communications Service Providers (CSPs) are the most popular mobile financial services supplier; with up to 90 percent of Sub-Saharan African mobile financial services users now using the technology through these companies.

Mobile financial services are currently enabling basic financial services such as withdrawal, transfer, storing money, as well as advanced services such as microfinance and insurance.

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