Understanding The Long-Term Sustainability and Profitability of Mobile Money in Africa

Background: Mobile money has revolutionized financial services in Africa, providing access to banking and financial services to millions of previously unbanked individuals. The proliferation of mobile phones coupled with innovative financial technologies has enabled this rapid expansion. Mobile money services have been pivotal in driving financial inclusion, fostering economic development, and reducing poverty across the continent. For example, M-Pesa in Kenya in 2007 became a game changer in financial inclusion and accessibility in Kenya. Safaricom developed M-Pesa, which allowed users to deposit, withdraw, and transfer money using their mobile phones, radically changing how Kenyans accessed financial services. Mobile money grew on the back of the rapid mobile communication expansion throughout Africa. The continent's expansive topography, lack of telecommunications infrastructure, and expanding population made it an excellent target for telecommunications carriers (both domestic and international). Despite substantial advances in mobile telecommunication and mobile money services, there is a huge research gap that requires immediate attention. Methods: This study analyzed existing literature to identify the critical factors that contribute to or hinder the long-term sustainability and profitability of mobile money in Africa. It reviews and critiques literature from various reputable databases. Results: Key issues include gender disparities in mobile money uptake and usage, lower levels of digital and financial literacy among rural communities, and a lack of understanding of the long-term sustainability and profitability of these services in competitive markets. Conclusion: This study makes three key contributions to the body of knowledge. It provides a comprehensive overview of the evolution and current state of the mobile money ecosystem. The study highlights the significant economic and social impacts of mobile money adoption and the study identifies critical gaps in mobile money research.