Nigeria Mobile Money Market

Market Overview:

The Nigeria mobile money market size is expected to exhibit a CAGR of 26.37% during 2024-2032. The rising adoption of smartphones across Nigeria, increasing government support and regulations, and escalating online shopping and digital transactions are among the key factors driving the market growth

Mobile money refers to a digital financial service that enables users to store, send, and receive money using mobile devices. This technology-driven solution allows individuals, even those without traditional bank accounts, to conduct transactions such as bill payments, fund transfers, and purchases conveniently and securely. Users link their mobile phone numbers to virtual wallets, allowing them to access financial services through text messages, mobile apps, or USSD codes. Mobile money plays a crucial role in promoting financial inclusion, especially in regions with limited access to traditional banking infrastructure, by providing a practical and accessible means of conducting monetary transactions and managing funds.

The widespread adoption of mobile phones and increasing internet accessibility represent the primary factors driving the market growth. This digital connectivity empowers users to access financial services and perform transactions conveniently through their devices. Moreover, the heightened emphasis on financial inclusion, as mobile money services bridge the gap between the unbanked or underbanked populations and formal financial systems, is positively influencing the market growth. Additionally, the rising government support and regulatory initiatives facilitating environment for advancement of mobile money has catalyzed the market growth. Favorable regulations provide a sense of security, encouraging both service providers and users to engage more actively in mobile money transactions. Besides this, the increasing strategic partnerships between mobile network operators, financial institutions, and technology providers is propelling the market growth. Furthermore, the emerging trend of e-commerce and digital transactions in Nigeria has accelerated the adoption of mobile money, as it offers a secure and efficient way to facilitate online payments.

Nigeria Mobile Money Market Trends/Drivers:

Rising Digital Connectivity and Smartphone Penetration

One of the key factors fueling the market growth is the increasing prevalence of digital connectivity and widespread smartphone adoption across Nigeria. With mobile phones becoming an integral part of daily life, individuals across various socio-economic strata are gaining access to a versatile platform for financial transactions. As internet accessibility continues to expand, users can conveniently perform tasks such as fund transfers, bill payments, and purchases through their smartphones. This trend is reshaping consumer behavior and creating opportunities for businesses to offer innovative mobile money services that cater to diverse needs. The enhanced convenience and ease of use associated with mobile phones make them an ideal tool for financial inclusion, enabling users to participate in the formal financial system irrespective of their physical location. This factor underscores the transformative potential of digital technology in driving financial accessibility and empowerment.

Supportive Regulatory Environment

The Nigeria market for mobile money benefits from a supportive regulatory environment in the region that encourages growth and innovation. Government policies and regulations are designed to establish a secure and transparent ecosystem for mobile money transactions. These frameworks build consumer trust and confidence in mobile money services, which are often accessed via digital platforms. The regulatory support also attracts investments from various stakeholders, including mobile network operators, financial institutions, and technology providers, leading to collaborative partnerships that enhance the mobile money ecosystem. By addressing concerns related to security, fraud prevention, and customer rights, the regulatory environment creates a foundation upon which the market can flourish. This driver illustrates the crucial role of regulations in shaping the mobile money landscape and ensuring its sustainability in the long run.

Nigeria Mobile Money Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Nigeria mobile money market report, along with forecasts for the country level from period 2024-2032. Our report has categorized the market based on technology, nature of payment, business model and transaction type.

Breakup by Technology:

• USSD
• Mobile Wallets
• Others
   

USSD represents the most widely used technology

The report has provided a detailed breakup and analysis of the market based on the technology. This includes USSD, mobile wallets, and others. According to the report, USSD represented the largest segment.

Unstructured Supplementary Service Data (USSD) technology is an interactive and real-time communication platform that operates seamlessly on basic mobile phones, regardless of whether users have internet connectivity or smartphones. This accessibility is of paramount importance in a country where smartphone penetration is not yet ubiquitous. By leveraging USSD codes, users can engage in a spectrum of financial activities, from balance inquiries and funds transfers to bill payments and account management, all from the convenience of their mobile devices. This technology bridges the digital divide and empowers rural and underserved communities to partake in formal financial services. As USSD transcends language barriers and provides users with financial tools at their fingertips, it accelerates financial inclusion and acts as a catalyst for socioeconomic progress, propelling the growth of the Nigeria mobile money market.

Breakup by Nature of Payment:

• Person to Person
• Person to Business
• Business to Person
• Business to Business
   

Person to person accounts for the majority of the market share

A detailed breakup and analysis of the market based on the nature of payment has also been provided in the report. This includes person to person, person to business, business to person, and business to business. According to the report, person to person accounted for the largest market share.

By enabling individuals to seamlessly transfer funds to one another using mobile devices, person to person (P2P) transactions have revolutionized the way people exchange money, overcoming geographical barriers and reducing reliance on traditional banking channels. This enhanced convenience and immediacy fostered by P2P mobile money transfers addresses the challenges of physical distance and limited banking infrastructure, particularly in rural areas.

It facilitates everyday transactions between family and friends and supports the informal economy and small businesses. As P2P transactions gain widespread acceptance due to their simplicity and accessibility, they contribute significantly to the growth of the mobile money market in Nigeria, boosting financial inclusion and amplifying the benefits of digital financial services across the nation.

Breakup by Business Model:

• Bank Led Model
• Non Bank Led Model
   

Non-bank led model holds the largest share in the market

A detailed breakup and analysis of the Nigeria mobile money market has been provided based on business model. This includes bank and non-bank led models. According to the report, the non-bank led model accounted for the largest market share.

The non-bank led model involves entities beyond traditional banks, such as telecom operators and fintech companies, leading the way in offering mobile money services. By leveraging their existing infrastructure and customer base, these non-bank players extend financial services to remote and underserved populations, effectively bridging gaps in the formal financial ecosystem. This model capitalizes on the pervasive reach of mobile networks, allowing users to perform diverse financial transactions using basic mobile phones. This inclusivity fosters economic growth, particularly in regions where banking services are limited. As non-bank players continue to forge strategic partnerships and offer user-centric solutions, the non-bank led model remains a formidable driver, catalyzing the market growth while democratizing financial access across Nigeria.

Breakup by Transaction Type:

• Peer to Peer
  • Domestic Remittance
    • Intra City P2P
    • Inter State P2P
  • International Remittance
    • Outbound Remittance
    • Inbound Remittance
• Bill Payments and Airtime Top-ups
  • Credit Card Payment
  • Fuel Bills
  • Healthcare and Wellness Bills
  • Rental Payment
  • Mobile and DTH Recharge
  • Others
• Travel Booking
  • Offline Travel Booking
  • Online Travel Bookings
    • Online Flight Bookings
    • Online Bus and Train Bookings
    • Online Hotel Bookings
    • Others
• Others
   

Peer to peer dominates the market

A detailed breakup and analysis of the Nigeria mobile money market has been provided based on pack size. This includes peer to peer [domestic remittance (intra city P2P and inter-state P2P) and international remittance (outbound and inbound remittance)], bill payments and airtime top-ups (credit card payment, fuel bills, healthcare and wellness bills, rental payment, mobile and DTH recharge, and others), travel booking [offline and online travel bookings (online flight, online bus, and train, online hotel, and other bookings)], and others. According to the report, peer to peer accounted for the largest market share.

Peer-to-peer model enables individuals to seamlessly transfer funds directly to one another using mobile devices, transcending geographical barriers and minimizing reliance on traditional banking systems. P2P transactions have become a cornerstone for economic empowerment, particularly in underserved areas, as they facilitate small-scale commerce, family support, and community-based transactions.

Furthermore, the ease of use and convenience of this method have redefined money exchange, enhancing financial inclusivity by providing an accessible and efficient means of transferring funds. As P2P transactions continue to gain widespread adoption, they are expected to stimulate the growth of the mobile money market by promoting financial literacy, driving digital adoption, and fostering financial independence among individuals across Nigeria.

Competitive Landscape:

Key players in the market have recently introduced innovative solutions to enhance user experiences and expand service offerings. Moreover, the leading mobile network operators have integrated chatbot-based customer support, using AI to provide real-time assistance and streamline issue resolution. Fintech startups are also leveraging blockchain technology to improve security and transparency in mobile money transactions. Furthermore, rising strategic partnerships between mobile money providers and e-commerce platforms have led to seamless integration of mobile payments into online shopping experiences, stimulating the growth of digital commerce. These innovations collectively aim to create a more user-friendly, secure, and versatile mobile money ecosystem, driving customer adoption and engagement while contributing to the broader goals of financial inclusion and digital economic empowerment.

The market research report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players included:

• Cellulant Nigeria Limited
• Ecobank Nigeria Limited (Ecobank Transnational Incorporated)
• Funds and Electronic Transfer Solutions Ltd
• Fortis Mobile Money Limited
• Guaranty Trust Bank Plc
• Pagatech Limited
• Pocket Moni
• ReadyCash
• Teasy International Company Limited
• VTNetwork Limited

Nigeria Mobile Money Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Nigeria mobile money market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Nigeria mobile money market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Nigeria mobile money industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.