The total number of mobile money users is set to exceed 1.2 billion according to new research found by Juniper research. Mobile money is the technology that allows users to send receive and store money. It can be said that mobile money acts as a digital wallet. Due to the massive convenience, it provides they have become a very common way of spending in developing countries like India. With the emergence of UPI and national as well as MNCs making a play at this market, the potential for business in this marketplace has exploded.
Juniper Research finds that the number of users of mobile money is to exceed from 980 million in 2020 to over 1.2 billion in 2025. This huge jump can be placed on the convenience and trust that the general public sees in this method of transfer of money. The report predicts that domestic P2P and payments to merchants will increase in popularity in mobile money schemes and will drive growth. The research recommends that mobile money providers agree to partnerships with banks and other financial institutions to increase the sophistication of the products they offer and to take advantage of increasing financial and technological literacy.
The research study named Mobile Money in Emerging Markets: SWOT Analysis, Vendor Strategies & Market Forecasts 2020-2025 payments as a platform model, where mobile money markets can act as a gateway to third party platforms, is essential for the future of the market. It also suggests leveraging third-party partnerships and expanding the remit of services will be critical for driving the value of the mobile money market upwards over the coming years.
The research also found that users of sophisticated microfinance like microcredit, microsavings, and microinsurance, will increase rapidly; reaching over 336 million in 2025, up from 227 million in 2020. The report finds that the use of data analytics in mobile money is becoming a key capability that enables vendors to offer intelligent savings products and to accurately risk-manage their credit operations. As this market segment becomes more competitive it means that the consumer is set to have exclusive deals and other capabilities built into the application itself.