Mobile money services offered by mobile service providers are going to face a major shift of monetization models, according to researchers at Juniper Research. Where at present the revenue stream is provided by user fees, the future model will be as a platform for third parties.
Juniper Research believes that the future of the mobile money sector lies in the “payments as a platform” model. That suggests a dwindling revenue stream from user fees, and a greater reliance on fees paid by third parties to reach users of the networks.
That noted, the total transaction value of the mobile financial services market will exceed $1 trillion by 2024, according to Juniper Research, growing from $580 billion in 2019, a growth of 70 percent.
Juniper Research also believes much of the growth will come in Latin America, for services such as microfinance, microloans and money transfer.
Juniper Research forecasts that the total number of people using mobile financial services in Latin America will grow 20 percent on average annually over the next five years. This is twice as fast as saturated markets such as Africa & Middle East, Juniper notes.
Juniper predicts that the number of mobile financial services users in all emerging markets will reach 1.2 billion by 2024, growing from 890 million in 2019.
Africa & Middle East will account for over 600 million users alone by 2024.
Juniper Research believes that “cash In, cash out” transactions will be the largest driver of growth for the MFS market; exceeding a value of $590 billion by 2024. CICO allows users to access traditional banking services, such as deposits and withdrawals, using mobile devices.
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