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Nearly half of all consumers in Sub-Saharan Africa are using mobile financial services in 2021 – a more-than three-fold increase in the last six years.
This has been revealed in a new Ericsson Consumer and Market Insight report titled Mobile Financial Services on the Rise which also highlighted the impact of the Covid 19 pandemic on mobile financial services uptake, with 54% of consumers saying that they use mobile financial services transactions more now.
About 70% are more positive towards mobile financial services as a preferred contactless alternate to cash.
The report research was conducted by Ericsson Consumer & IndustryLab in early 2021. It 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 behaviour.
The report highlights 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% believe that faster transactions would encourage them to use mobile money services more while 51% 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 to start using it, says the report.
“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,” says Lucky La Riccia, Vice President and Head of Digital Services, Ericsson Middle East and Africa.
He adds: “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.”
Communications Service Providers (CSPs) are the most popular mobile financial services supplier, with up to 90% 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 withdraw, transfer, storing money, as well as advanced services such as microfinance and insurance.
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