Sub-Saharan Africa: A Major Potential Revenue Opportunity for Digital Payments

6 Pages Posted: 25 Jul 2013 Last revised: 14 Feb 2015

See all articles by Jake Kendall

Jake Kendall

University of Washington, CSE

Robert Schiff

McKinsey & Co. Inc.

Emmanuel Smadja

McKinsey & Co. Inc.

Date Written: September 2013

Abstract

Mobile financial services — often called mobile money — are a high priority for many mobile operators, financial institutions, technology firms and governments. In regions where financial inclusion is limited, such as sub- Saharan Africa (SSA), mobile money promises a lower-cost, more scalable alternative to traditional banking. Yet, despite high interest levels in SSA markets, there have been few success stories to date. This is partly due to uncertainty about whether Kenya — where M-Pesa has become one of the few mobile money success stories — is unique, or whether the potential for mobile payments in other markets is similarly robust. To cast some light on the opportunity, this article attempts to quantify some of the many highpotential payments flows in this rapidly evolving region, and to estimate the associated revenue pools.

Keywords: mobile money, payments, remittances

JEL Classification: R2, L8

Suggested Citation

Kendall, Jake and Schiff, Robert and Smadja, Emmanuel, Sub-Saharan Africa: A Major Potential Revenue Opportunity for Digital Payments (September 2013). Available at SSRN: https://ssrn.com/abstract=2298244 or http://dx.doi.org/10.2139/ssrn.2298244

Jake Kendall (Contact Author)

University of Washington, CSE ( email )

Seattle, WA 98195
United States

Robert Schiff

McKinsey & Co. Inc. ( email )

55 East 52nd Street
21st Floor
New York, NY 10022
United States

Emmanuel Smadja

McKinsey & Co. Inc.

Konigsallee 60C
Chicago, IL Quebec 60603
United States

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