Mobile money is going to be the fintech buzzword next year. This is a bold prediction to say the least but when you look at what has happened in recent years, you will soon see that this isn’t far-fetched at all.
Mobile money is the management and digital storage of money in which an account is linked to a phone number. The user has a mobile account that is similar to a bank account. They can then send money to make purchases, pay bills or anything else of the sort. You should know however that mobile money is not thriving in Nigeria. Paga are a non-telecoms service provider and they have an operation that has over 12 million users. They also have 20000 agents who work with them too but when you look at the telecom firms, you will see that there are some mixed promises. MTN, who are the biggest communications firm in Nigeria have launched their operation and they now have two rivals. One of the main reasons why Nigeria’s money industry is growing is actually because of the casino industry. Take NetBet casino for example, they have thrived in the tech industry and people are able to deposit money directly through their site. With things like this happening, it’s not hard to see why the money industry in Nigeria is also taking off.
How the Face of Nigeria is Going to Change
The financial services that operate in the Nigerian economy are going to be experiencing a full and complete makeover. Nigeria has a huge population but when you look at the statistics, you will see that only 40% of people actually have a bank account. The rural penetration of telecommunication would actually help people to be more included. Fintech would also be able to receive payments through other channels, including more traditional ones too.
Firms and even industries that require receiving deposits and even remitting payments would easily benefit from this. As the revolution in mobile money takes off, it’s safe to say that it would also bring good business. A good example is when you look at betting companies too. Channels would be opened up, payments can be made, and this would help everyone to benefit from the thriving industry. If this is going to happen however then more needs to be done to support this movement. Payments need to be made easier as this would lead to more subscribers and it may even mean that people are able to reap the benefits much more efficiently.
Only time will tell if this is going to be the case or not and right now it looks as though it is a struggling sector. If innovations are made and if more can be done to support the movement overall however then there is no telling what they could go on to achieve. This is especially the case when you look at how far they have come and what more could be done to push things even further.