A recent survey by industry group GSMA has shown that the success of mobile banking in East and
Thanks to the fast uptake in
GSMA's "live tracker" shows that there are 246 live mobile money services globally, with a further 112 planned. There are over 100 money services in Sub-Saharan Africa, including six in
In May of this year,
The service is set to revolutionise areas where traditional banking facilities are limited. In Central and
And it is not just
Of the new markets,
"Mobile banking met a need that was already there, while the market at consumer level has been innovative,"
"It has tens of applications on the same core idea."
Muriuki said that only 24-30 per cent of
On the movement of mobile banking to
"There will be a boiling point when they realise they're being left behind."
Apart from geographical expansion, the type of service being used on mobiles has evolved, according to the survey, as the use of "bulk payments" such as salary payments and government-to-person transfers grew.
In 2013, M-Pesa accounted for Sh1.9 trillion in transactions, equal to 60 per cent of
The success of mobile banking in
The company had planned for the service to go live this month, but wrangles over the bank's 'thin sim' has caused delays. When they launch, Equity will place pressure on their competitors to lower transactions fees, as they are set to charge just one per cent of the transferred amount, with a cap of Sh25.
Equity also said it will be offering loans, dubbed Eazzy, on a minimum amount of Sh500, at between one and two per cent interest a month, depending on statistical information held within the phone.
So, in a fast-moving industry it appears it will be consumers who benefit from fierce competition and rapid innovation, a fact reflected by international companies such as
In a bid for market share Equity even claims to be issuing 300,000 smartphones to supermarkets, restaurants, kiosks, and barbershops free of charge - all call points to facilitate cashless transactions and boost its income from processing payments.
The message is that mobile banking infrastructure is cheap and so uptake across regions can happen quickly.
This means that over time more and more people will be brought into formal banking, crucial for development and macro-economic expansion through access to micro-finance for SMEs, something which is expected to be replicated in other developing and middle-income nations.
The reduction of costs is also a major benefit for businesses. In
The future of mobile banking appears bright, both within
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