Do you want to know how people will send money to Senegal in future? This article will look at the future prospects of mobile money in Senegal, a West African country. We will also define mobile money and take a brief look at its past too.
Mobile money:- Mobile Money is a new technology that enables people to send and receive or move money on their smartphones. Mobile money was introduced by two companies Smart Communications and Global Telecom nearly a decade ago. These two companies were already operating and dealing in mobile money in the Philippines since 2005.
This unique idea was soon replicated in Africa in 2007 by Vodacom as M-Pesa. This idea had so much potential that Sub-Saharan Africa (SSA) became a region that recorded the most growth in this market. Mobile money’s volume has been growing at a huge 39% annually over the past decade, with both transaction volume and value witnessing double-digit growth in SSA.
But, despite these huge growth figures with mobile money transactions reaching 6.4% of SSA’s GDP in 2018, it was well below 20.4% share of GDP of European Union (EU) held by Credit Cards in 2018.
Let’s now take a quick look at the economic and investment potential of mobile money transfer to Senegal and all over Africa.
- OPay raised 120 million USD in the Series B funding round modelled by Chinese investors;
- PalmPay raised 40 million USD in seed funding, led again by a Chinese mobile phone company Transsion; and
- Paga raised 10 million USD in the round led by Global Innovation Fund.
Now let’s see what the future of mobile money holds in Senegal and the entire world.
The African continent is one of the poorest regions in the world. Its economy has been one of the world’s poorest due to political instability, turmoil, repeated military interventions and deteriorating law and order situations. This pushed people into abject poverty and rendered millions jobless. These people travelled abroad to earn a living, and they formed a large African diaspora spread across the world.
Now, these people find it difficult to transfer funds back home to their respective countries, including Senegal, through banks and other conventional methods since these methods and banks take a lot of time and turn out to be costly. Therefore, these Senegalese people necessarily go to online money transfer companies for instant online money transfers to Senegal.
Mobile money is quickly replacing the old and conventional ways of transferring money because: a) these new ways are proving to be cost-effective; b) they also help people who use these services save their time; c) in these new ways of transferring money people are now able to track their transactions once a transaction is initiated and is processing; d) people can now book an online transaction from the middle of their comfort zones as the days of physical visitations to banks and other financial institutions dealing in traditional ways to transfer money are long gone; e) these online mobile money transfers are way too secure and safe; f) these mobile money transactions are faster and take somewhere between a few minutes to a few hours which enables both the senders and the beneficiary meet their financial needs and urgencies more effectively; and g) all you need to book, initiate and even complete a mobile money transaction is a smartphone, a secure internet connection and mobile app of an online money transfer company of credibility and repute such as ACE.
Conclusion:- From all of the above, we can safely say that the future of mobile money in Senegal is quite bright as people will try to ensure they can send money to Senegal online with maximum convenience.