Telecom
GSMA Lists Barriers to Mobile Money Adoption in Emerging Markets
With more than 866 million registered mobile money accounts globally and $1.3 billion processed daily, mobile money serves as a critical infrastructure for start-ups looking to increase digital payment adoption among their customers in emerging markets, yet they face challenges of adoption, according to the latest report from the General System for Mobile Communication Association (GSMA), the global body that represents the interests of mobile operators world-wide.
Inspired by this development, the GSMA Ecosystem Accelerator and Mobile for Development Utilities teams hosted an online clinic diving into mobile money adoption strategies specifically for start-ups in emerging markets in Africa and Asia Pacific.
While analysing the report from the online clinic, Nika Naghavi, senior manager for Inclusive Fintech, Anant Nautiyal, and Data and Insights Director, who work in the GSMA Mobile Money programme, gave an overview of the mobile money industry in some selected emerging markets as it undergoes crucial technological and organisational transformations.
According to them, when it comes to driving mobile money adoption, start-ups from emerging markets face a range of different challenges depending on the context and sector that they operate in. They listed some of the barriers to include: Educational and digital literacy barrier; Product design barrier and Affordability barrier.
For Educational and digital literacy barriers, they explained that for many start-ups, particularly those operating in rural or low-income settings, their customers are first time mobile money users. “Addressing education and digital literacy barriers is therefore critical for driving mobile money adoption and providing greater access to the start-up’s product offering,” Nautiyal said.
Citing Nigeria and Ghana as some of the emerging markets in Africa, Naghavi said: “In rural Ghana, Safe Water Network (SWN), operates mobile money-enabled prepaid household meters, and water treatment and distribution stations. Initially, their users lacked trust in the technology. To resolve this challenge, SWN partnered with MTN Ghana to tackle educational and product design barriers through interactive group work-shops and one-one sessions, as well as a promotional campaign offering prizes to the ‘super-star’ mobile money users. Though cash still represents a significant proportion of total payments, the impact of the joint-campaign is evident.”
According to him, Gham Power develops solar microgrids and solar water pumps, which heavily relied on digital payments for cash collection in rural Nepal and so partnered with mobile operator Ncell, and eSewa, a digital wallet provider, to leverage their agent networks.
Gham Power invested in training agents with video tutorials and ensured that agent incentive structures were designed to drive digital payment adoption among rural customers.
In the area of Product design barrier, the report said product design barrier could include language restrictions, lacking suitability for basic and feature phones, and the limitations of finances, culminating in poor customer experience and user experience, and therefore poorly designed products not suitable for targeted users.
According to the report, SWN realised the importance of communicating with its customers and employed the use of SMS notifications to communicate about deductions from customers’ MTN mobile wallets – fostering an environment of trust and transparency with low-income users.
Given the low smart phone penetration in Senegal, MaTontine, a start-up from Senegal had to ensure that its product offering could operate on basic and feature phones, whilst facilitating trust in their digital service for their female users.
The report also noted that affordability was also a barrier, when mobile money transaction fees account for a significant proportion of the average end-user utility bill payment, which it said, could be a significant barrier to adoption, along with weakening the economic case for mobile money adoption for businesses that rely on small frequent transactions (such as pay-as-you-go).
“This is particularly true for first-time mobile money users and in nascent mobile money ecosystems, where fees are often interpreted as an insurmountable entry cost. Given the immense operational cost savings from high mobile money adoption, SWN decided to absorb the mobile money transaction fee charged to its customers in order to ensure widespread adoption among its customer base,” the report added.
At the recently concluded NextNow Business Forum in Victoria Island, MTN Nigeria electrified the business community with a live demonstration of its forthcoming Communication Platform as a Service (CPaaS), a solution engineered to redefine how Nigerian enterprises connect with their customers.
Unlike traditional communication systems, MTN’s CPaaS is built for the realities of a mobile-first market. The platform unifies SMS, voice, WhatsApp, email, and more into a single, intuitive interface. This approach is especially significant in Nigeria, with over 107 million internet users, 45.4% of the total population, according to Data Report. This figure underscores the necessity for businesses to meet customers where they are.
During the demo, attendees witnessed how CPaaS enables two-way, real-time conversations between brands and customers. The platform’s support for rich media, instant analytics, and seamless integration with business workflows drew particular attention. These features are designed to empower businesses with data-driven insights and the agility to personalise every interaction, whether it’s a service notification, marketing campaign, or customer support exchange.
Akinbulejo Onabolu, Head of Enterprise Segment at MTN Nigeria, articulated the vision: “CPaaS gives enterprises the flexibility to interact with their customers on their preferred platforms; whether it’s chat, voice, or messaging, in a way that feels personal and immediate. We’re looking forward to the value this will unlock for businesses across industries once it launches.”
The fireside chat added depth to the conversation, with Omowunmi Olatunbosun, Head of SME Segment at MTN Nigeria, and Stephen Agbi of Bayobab, highlighting how digital engagement bridges the gap between businesses and audiences.
They emphasised that today’s consumers demand immediacy, relevance, and ease, qualities that CPaaS is built to deliver.
The stakes for digital transformation in Nigeria are high. In a report by Punch, the country’s enterprise tech market is projected to reach $22 billion by 2027, reflecting a surge in demand for scalable, cloud-based solutions that drive efficiency and customer loyalty.
The CPAAS Acceleration Alliance have estimated that globally, the CPaaS market is expected to grow from $14.7 billion in 2025 to $72.4 billion by 2035, at a compound annual growth rate of 18.4%, a testament to the platform’s transformative potential.
The event’s closing keynote from META’s Korhan Yunak reinforced the strategic value of digital channels like WhatsApp, which are now indispensable for business communication and engagement at scale.
As MTN Nigeria prepares for the Q3 2025 launch, the anticipation is unmistakable. With its promise of flexibility, intelligence, and seamless integration, MTN’s CPaaS platform is set to become the backbone of next-generation business-customer engagement in Nigeria, enabling enterprises to not just communicate but to connect, adapt, and grow in a digital-first era.
MTN Uganda is seeking input from stakeholders on a plan to structurally separate its mobile money service, MoMo, from its core telecoms business.
According to the company, the proposed change will be discussed at the upcoming extraordinary general meeting on July 2.
If approved, the telco’s fintech business will be run by a new company controlled by MTN Group Fintech Holdings B.V. and a trust benefiting minority shareholders following a merger.
Additionally, the restructuring also aligns with MTN Group’s ambition 2025 strategy which aims to unlock value, attract new investors, and strengthen regulatory compliance by creating standalone fintech entities in Uganda, Ghana, and Nigeria.
The company’s fintech division has over 13 million customers, with an 18.4% revenue increase in the first quarter of 2025, driven by 19.0% growth in mobile money services, 19.8% growth in transaction volumes, and a 31.4% increase in transaction value.
Reports say the decision is part of the telco’s compliance with the National Payment Systems Act 2020, which mandates mobile money businesses to operate as standalone entities, and to align with MTN Group’s regional fintech strategy.
MTN Uganda, which is led by CEO Sylvia Mulinge, highlighted that the implementation of the proposed transaction will be subjected to a number of conditions and regulatory procedures.
“The implementation of the proposed transaction shall be subject to a number of conditions, including the company and MTN MoMo receiving all required regulatory approvals and no-objections and complying with any regulatory conditions,” said MTN Uganda in notice.
Netflix has announced plans to invest more than €1 billion in Spanish film and television productions over the next four years, reinforcing its commitment to Spain as a key creative hub in Europe.
The announcement was made by co-chief executive Ted Sarandos at an event held at Netflix’s production studios near Madrid, celebrating the company’s 10-year presence in the country.
Sarandos emphasized that the investment would contribute significantly to Spain’s economy, create jobs, and enable the streaming platform to produce more local content. He was joined by Spanish Prime Minister Pedro Sánchez in unveiling the initiative.
Netflix first established its international production studios in Madrid in 2019, following the success of the Spanish-language hit series Money Heist.
Since then, its 22,000-square-meter facility has become one of Netflix’s major production centers within the European Union.
The company currently supports over 20,000 jobs in Spain, highlighting the nation’s growing influence in global entertainment.
The investment reflects Netflix’s ongoing strategy to expand its presence in European markets through original content and local talent.
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