An increasing number of people across the globe are using mobile money platforms to secure loans largely for survival.
The Global System for Mobile Telecommunications Association (GSMA), which revealed this in its ‘State of the Industry Report on Mobile Money 2025,’ said more users in Asia and sub-Saharan Africa used mobile money to take out a loan in 2024 than in the year before.
GSMA noted that data from 2023 and 2024 showed that the number of customers, who used mobile money to take out a loan grew by 10 percentage points or more in Ethiopia, India, Pakistan and Uganda. GSMA said significant increases were seen in Indonesia, Nigeria and Bangladesh too.
According to the report, the figure rose to 11 per cent in 2024 compared to three per cent recorded in 2023 in Nigeria. Bangladesh moved from seven per cent in 2023 to 14 per cent a year after. Indonesia went from two per cent in 2023 to 10 per cent in 2024, while Senegal recorded 12 per cent in both years.
Further, Ethiopia went from two per cent in 2023 to 14 per cent in 2024; Pakistan saw three per cent in 2023 to 15 per cent in 2024 and India moved from four per cent in 2023 to 14 per cent a year after.
The report noted that in previous years, credit remained the adjacent financial service most likely to be offered by MMPs, saying many providers see credit as a natural next step in offering their customers financial services beyond payments.
GSMA observed that among MMPs that submitted data in both 2023 and 2024, the number of credit products offered went up by nearly 20 per cent.
“Many products are typically offered in partnership with a financial institution, as mandated by regulators. In 2024, around 38 per cent of MMPs offer credit in partnership with a bank or other formal financial institution. About 26 per cent had partnered with a fintech company. The increase in MMPs offering credit has led to a rise in the number of customers taking out mobile money-enabled loans. The number of unique customers who received loans through mobile money grew by 50 per cent between September 2023 and June 2024. As a result, the volume of loans disbursed per month was around
54 per cent higher in June 2024 than in September 2023,” the report noted.
MEANWHILE, GSMA disclosed that mobile money platforms processed some 108 billion transactions valued at $1.68 trillion in 2024.
It noted that mobile money transaction volumes increased by 20 per cent year-on-year, while transaction values grew by 16 per cent, up from a 13 per cent increase in 2023.
It revealed that transaction volumes and values for mobile money accounts experienced robust double-digit growth in the year under review, saying about 108 billion transactions, totaling over $1.68 trillion, were processed through mobile money accounts in 2024.
Director-General of GSMA, Vivek Badrinath, said mobile money has emerged as a powerful driver of financial inclusion and economic growth. “Its continued success depends on supportive regulatory environments that promote innovation, and accessibility and help unlock the full socio-economic potential.
“To ensure mobile money remains accessible, affordable, and safe, it is vital for governments and regulators to work with financial service providers to support financial literacy programs, empowering underserved populations and opening new opportunities for financial decision-making,” he said.
The report stated that the GDP of countries with mobile money services increased by approximately $720 billion by 2023, reflecting a 1.7 per cent increase. In Sub-Saharan Africa, mobile money added about $190 billion to GDP in the same year.
