Mobile money has been around for over a decade and is currently the preferred banking service for many underprivileged populations in emerging African nations. Its attractiveness and rapid acceptance in Africa stem from its financial democratization.
But, unlike in many established markets, the quick acceptance and use among underprivileged populations is not due to convenience. Still,
the lack of access to banking services, poor user experience in rural and remote areas, and high management costs for this population group all contribute to the need of mobile money in Africa.
As a consequence of these issues, the Fintech industry has innovated its service and used tech sectors to help the underserved community. This Fintech breakthrough makes developing nations the hub of mobile money. Sub-Saharan Africa had the most substantial rise in mobile money use. Mobile money transaction volume and value have grown double-digits over the previous decade.
Comparatively, 500 million mobile money accounts are predicted by 2020. Africa has seen this tremendous success. According to GSMA,
the penetration rate would effect the sub-Saharan African economy by $150 billion by 2022. However, mobile money has benefitted several African industries. The mobile money impact is not an anomaly in the e-commerce iGaming sector. A vital contribution to the African economy. The exponential rise of iGaming betting and gaming in Africa is obvious.
As a result, bookies have quickly integrated mobile money services into their platforms, allowing users to deposit and withdraw funds from their mobile money accounts from the comfort of their homes. Customers may load money directly into a mobile wallet, which they can use more like an online bank account by depositing, withdrawing, funds, transferring, and paying bills, among other things.
Also, the iGaming business is not immune to the influence of mobile money acceptance. The competitive mobile market environment has made it inexpensive for the African population, with the penetration rate of smartphone users predicted to reach 690 million by 2050. Mobile-first is increasingly the new standard for young Africans to do everything online.
Thus, the region’s iGaming industry has seen remarkable development, with mobile accounting for 40% of total betting GGR in Africa. The present COVID-19 situation has pushed digitization even closer, and the amount of individuals who went online during the linked shutdown makes the local iGaming business appear even more appealing to betting enthusiasts. Simultaneously, an underprivileged segment in Africa prefers mobile money.