As per the latest report by IMARC Group, titled “Kenya Mobile Money Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024”, the Kenya mobile money market size reached US$ 40 Billion in 2018.
Sending and receiving money plays a vital role in the daily lives of the Kenyan population. As most of the individuals in the country do not have access to formal or semi-formal banking services, they rely on mobile money services, which are an affordable, effective and reliable means for paying bills, and depositing, withdrawing and transferring money.
Mobile money also ensures that the money can be deposited in one location and withdrawn in another. In recent years, there has been a rise in the demand for mobile money in Kenya, owing to the increasing internet penetration and boosting sales of smartphones.
Mobile money is a financial service, which allows users to receive, store and send money with the help of the internet. It is a fast, secure, convenient, easy-to-use, multi-faceted and cost-effective means of making payments.
As it eliminates intermediaries and involves reduced transaction costs, it is gaining traction across Kenya for transferring funds, recharging mobile airtime, and paying bills and school fees.
Rising internet penetration, lack of access to banking facilities and technological advancements in mobile services are some of the key factors driving the mobile money market in Kenya.
Apart from this, several insurance companies and NGOs in the country are increasingly adopting mobile money for payments, which is also contributing to the economic and social development of the country. Other than this, m-PESA, the leading mobile money service provider in Kenya, is offering the service of withdrawing funds using smartphones without the requirement of a bank account. This is anticipated to strengthen the market growth in the coming years.