rural Africans Mobile money
Photo: Stars Foundation via Flickr/idgconnect.com

Mobile Money Not As Useful As Expected For Banking Poorer, Rural Africans

By Tom Jackson, 2:19 pm AFKI Original

Just 2% of retail transactions in Africa are electronic. Cash is still king and small transactions — less than $2 — have hindered the growth of mobile money outside of its Kenyan heartland. The value of M-Pesa and similar services is questionable for Africans living on just a few dollars a day. The average M-Pesa transaction value is closer to US$30. It’s unsustainable for agents to serve lower-income segments. They can’t afford to get down to the level of very small transactions, limiting the effect of mobile money on the bottom of the pyramid.

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