Challenges in Mobile Money Finance: The Reality of Financial Inclusion, Digital Divides, and Social Implementation — Mobile Financial Revolution from Africa Vol. 3

As we have seen, mobile money started as a remittance service and has evolved into a platform that integrates financial functions such as payments, loans, insurance, and savings.

Annual transaction values have reached $2 trillion, and a massive financial ecosystem has been formed, boasting 2.3 billion registered accounts and 593 million monthly active users.

However, the evolution of mobile money cannot be described solely by the expansion of market size. The very relationship between finance and society is changing, including the reality of financial inclusion, usage disparities, and its role as social infrastructure.

The latest GSMA report, "The State of the Industry Report on Mobile Money", also points out that mobile money is beginning to expand beyond financial services into social domains such as humanitarian aid, public services, and energy access.

In Part 3, we will organize the challenges mobile money faces, as well as how it is beginning to be implemented within society.

Chapter 7: The Reality and Limits of Financial Inclusion

Mobile money has provided new opportunities to people who previously could not access financial services, significantly advancing "financial inclusion".

However, on the other hand, there are clear limits when looking at the reality of usage.

The most important challenge is the "gap between access and usage." As of 2025, registered mobile money accounts have reached 2.3 billion, but of those, monthly active users remain at only 593 million.

This means that the active rate is around 25%, which conversely indicates a situation where many accounts are not being used continuously.

This gap is not simply a problem of services not reaching people.

Rather, it indicates structural barriers that exist between being "in a state of being able to use" and "actually being used".

One of the factors is a lack of digital financial literacy. Even if one holds an account, if their understanding of how to operate it or the risks involved is insufficient, it will not lead to continuous usage.

Especially for those encountering financial services for the first time, the digital environment itself can sometimes be a hurdle.

Furthermore, costs and regulations also have an impact. In some countries, taxes on mobile money transactions have been introduced, which drives up usage costs.

As a result, there is also a trend of "returning to cash," where users go back to using physical currency.

In addition, the issue of security risks cannot be ignored. The increase in cases of fraud and unauthorized transfers is a factor that undermines user trust, and it becomes a major barrier, especially for those with little experience in using the service.

Another important challenge is the gender gap. In 7 out of 10 countries surveyed, women who hold mobile money accounts tend to have lower actual usage rates compared to men.

This is not merely an issue of access, but a structural challenge where social, cultural factors, and economic constraints are complexly intertwined.

As described, while mobile money has achieved significant results in terms of 'expanding access,' challenges still remain regarding 'sustained usage' and 'equitable utilization'.

What is important is that financial inclusion cannot be measured solely by the increase in the number of accounts. It only gains meaning when it is actually used in people's daily lives and creates value.

In other words, the focus moving forward is shifting from 'how many people can we reach' to 'how consistently is it being used'.

Mobile money has certainly widened the gateway to finance. However, whether it can lead to 'substantive financial utilization' beyond that point is the critical factor that will determine the next stage of growth.

Chapter 8: Mobile Money Implemented in Society

Even amidst such circumstances, the evolution of mobile money is progressing beyond the boundaries of finance into a stage where it is being embedded into society itself.

Currently, it is beginning to function not just as a means of fund transfer, but as a part of humanitarian aid, public services, and even daily life infrastructure.

A symbolic area for this is humanitarian aid. In emergencies such as conflicts or disasters, it was previously necessary to deliver cash or supplies to the site.

However, with the spread of mobile money, it has become possible to send funds directly to individuals, significantly improving the speed and efficiency of aid.

In 2025, approximately 46% of mobile money operators are collaborating with humanitarian aid organizations to distribute funds.

Furthermore, on average, support is being provided to approximately 80,000 people per operator, which gives an idea of the scale.

Additionally, it is playing an important role in the energy sector. Especially in regions where power infrastructure is not sufficiently developed, the 'PAYG (Pay-As-You-Go)' model combined with solar power generation is spreading.

Because users can access electricity by making small payments through mobile money, it has become possible for households that struggle with initial investments to gain energy access.

Also, the social impact in the field of international remittances is significant, with the amount sent via mobile money reaching $45 billion in 2025.

As a result, remittances from family members working abroad are now made quickly and at a low cost, becoming a foundation that supports the lives of many households.

Supporting this kind of social implementation is the 'accessibility' and 'immediacy' inherent in mobile money.

Since it can be used by people without bank accounts and allows for receiving and paying funds with just a mobile phone, services are penetrating areas that were not reached by traditional financial systems.

What is even more important is that mobile money is beginning to take on the role of supporting 'the management of life itself'.

Receiving aid, paying for education, daily consumption, and energy usage—many activities related to people's lives are being conducted through mobile money.

In this way, mobile money is no longer just a financial service, but is beginning to function as an 'implemented mechanism' that supports various functions of society.

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❚ Information Source

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