PR88665

LONDON, March 24, 2021 /PRNewswire=KYODO JBN/ --

- Driven by the global pandemic, transactions increased by 65% during 2020

    The GSMA has today published its annual 'State of the Industry Report on

Mobile Money'(

https://www.gsma.com/mobilefordevelopment/resources/state-of-the-industry-report-on-mobile-money-2021).

It reveals a dramatic acceleration in mobile transactions during the COVID-19

pandemic as lockdown restrictions limited access to cash and financial

institutions. The report found that the number of registered accounts grew by

13 per cent globally in 2020 to more than 1.2 billion - double the forecast.

The fastest growth was in markets where governments provided significant

pandemic relief to their citizens.

    Providing more opportunities in the formal economy

    To minimise the economic toll of COVID-19, many national governments

distributed monetary support to individuals and businesses. The value 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 type 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 personal protective equipment (PPE) and hand

sanitising gel at agent counters.

    "We see that mobile money is a powerful tool for expanding the financial

inclusion of women 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 have 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."

    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 this is launching micro-entrepreneur

products that can be used in markets where women represent the majority of

vendors and customers.

    Increasing global financial equality

    For the first time, more than $1 billion was sent and received in the form

of remittances globally every month 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 diasporas continue to support

family and friends back home. As a result, the total value of transactions

increased by 65 per cent to an annual total of $12.7 billion in 2020.

    In working towards achieving the Sustainable Development Goals (SDGs), the

GSMA remains committed to reducing inequalities among countries when sending

money internationally. According to GSMA's research, mobile money provides an

affordable channel for connecting people to vital financial resources. The

mobile money ecosystem has been strengthened by an increasing number of

strategic partnerships established between money transfer organisations and

mobile money providers.

    Driving regulatory change

    As the COVID-19 pandemic negatively impacted people's lives and weakened

economies, regulators responded with a variety of measures aimed at reducing

the impact. The research found that the pandemic gave fresh urgency to the need

for regulatory change to facilitate greater digitalisation. In many markets,

transaction limits were increased to allow 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.

    While some of the regulatory reforms made in response to the pandemic have

been positive for customers and providers, the implementation and extension of

fee waivers has had a negative impact on mobile money providers' core revenue

stream. Mobile Money providers depend mainly on transactional revenues to

sustain their business. Regulators are strongly encouraged to work closely with

the industry to ensure sustainability going forward.

    To find out more, download the 2021 'State of the Industry Report on Mobile

Money' here:

https://www.gsma.com/mobilefordevelopment/resources/state-of-the-industry-report-on-mobile-money-2021.

Further information on the GSMA's Mobile Money programme is available at:

www.gsma.com/mobilemoney.

    Note to editors

    The State of the Industry Report on Mobile Money draws on the results of

the annual GSMA Global Adoption Survey of Mobile Financial Services and data

from the GSMA Mobile Money Deployment

Tracker[https://www.gsma.com/mobilemoneymetrics/#deployment-tracker]. It

provides insights on mobile money performance from the GSMA's engagement with

the industry. The report is funded by the Bill and Melinda Gates Foundation.

    About GSMA

    The GSMA represents the interests of mobile operators worldwide, uniting

more than 750 operators with almost 400 companies in the broader mobile

ecosystem, including handset and device makers, software companies, equipment

providers and internet companies, as well as organisations in adjacent industry

sectors. The GSMA also produces the industry-leading MWC events held annually

in Barcelona[https://www.mwcbarcelona.com/],

Africa[https://www.gsmathrive.com/africa/], Los

Angeles[https://www.mwclosangeles.com/] and

Shanghai[https://www.mwcshanghai.com/], as well as the Thrive

Series[https://www.gsmathrive.com/] of regional conferences.

    For more information, please visit the GSMA corporate website at

www.gsma.com. Follow the GSMA on Twitter: @GSMA.

    Media Contacts:

    GSMA Press Office

    pressoffice@gsma.com

    Logo: https://mma.prnewswire.com/media/1385555/GSMA_Logo.jpg

    Source: GSMA