Telco-backed Platforms Dominate The e-wallet Market in Africa And The Middle East
In a report titled “The State of E-Wallets: Africa and the Middle East,” it examines the e-wallet market in these regions, identifying key players and analyzing their services.
It underscores the sizable population of unbanked individuals in the region, coupled with the rising use of mobile phones, as driving forces behind the growing adoption of e-wallets due to their convenience and accessibility.
The report highlights twelve significant e-wallet platforms in Africa and the Middle East, all of which are staged e-wallets. This means they directly hold value and can be topped up with funds, most of which are accessible via mobile phones without the need for additional applications.
The majority of e-wallets in these regions are launched by telco providers, underscoring the dominance of telcos in the digital wallet landscape. These telco-backed platforms typically offer services across countries where they have an existing presence, playing a crucial role in financial inclusion by reaching unbanked and remote populations.
Among the twelve e-wallets featured, four have multi-country coverage and have emerged as regional leaders, while the remaining eight are national providers.
Airtel Money, M-Pesa, MTN Mobile Money, and Orange Money are identified as prominent e-wallet platforms in Africa and the Middle East. All of these platforms were launched by telcom providers, and facilitate various financial transactions such as transfers, bill payments, and international remittances.
MTN Mobile Money is another prominent e-wallet in Africa and the Middle East. The service, first introduced in 2009 by the MTN Group in Ghana, enables users to manage their money using their mobile phones, and claims more than 50 million users and 900 million transactions processed monthly.
Finally, the two remaining regional e-wallet platforms are M-Pesa and Airtel Money, both originating in Kenya. M-Pesa is a pioneering mobile phone-based money transfer service, payment platform, and micro-financing solution.
On the other hand, Airtel Money is a mobile money service offered by telco provider Airtel Africa. Airtel Money provides a range of mobile money services, including payments, micro-loans, savings, and international money transfers, and serving 31.5 million customers across 14 markets.
