Mobile money has become a mainstream financial service in many low- and middle-income countries (LMICs). Several research papers and empirical evidence have highlighted the positive social and economic impact of mobile money on individuals, households and businesses. These examples have shown that mobile money can reduce transaction costs for users and help households manage their cash flow, enabling them to smooth consumption and manage risk in the face of shocks.
Mobile money allows micro, small and medium enterprises to expand by facilitating faster and more efficient transfers. As a result, mobile money can lead to poverty reduction, higher employment and higher gross domestic product (GDP). While the micro-level effects are well documented, the macroeconomic impacts of mobile money are much less understood – particularly in relation to GDP growth.
In 2023, the GSMA published a report with evidence supporting mobile money’s positive impact on GDP. The analysis quantified the effect of mobile money at the macroeconomic level for countries with a mobile money service, both worldwide and at regional levels. As of 2022, the total GDP in mobile money countries was almost $600 billion greater than it would have been without mobile money. Establishing a causal link between the adoption of digital financial services in LMICs and long-term economic growth was a key milestone with significant policy ramifications. Further evidence of this link at the country level could push regulators and governments authorities to act on these findings – especially to continue the drive towards greater financial inclusion.
Due to industry demand for more granular insights, we further investigated mobile money’s impact on GDP at the country level in Côte d’Ivoire, Ghana, Kenya, Senegal and Tanzania. Across all five countries, GDP was between 8% and 10% higher at the end of 2023 than it would have been without mobile money (Figure 1). In dollar terms (2017 PPP), mobile money’s contribution to GDP ranged from $6 billion in Senegal to $24 billion in Kenya at the end of 2023.
Comparing the GDP contribution of mobile money to that of domestic industries and sectors can help to clarify the scale of impact. For instance, mobile money’s contribution to GDP in Côte d’Ivoire was similar to that of the information and communication sector in 2023. In Ghana, it was comparable to that of the manufacturing sector, and transport and storage sector in 2023.
Figure 1: Mobile money’s contribution to GDP in select markets in 2023 (2017 $PPP)
*Note: These contributions are not mutually exclusive to the impact of mobile money, which spreads across all economic activities
Source: GSMA and GSMA Intelligence
Based on the analysis so far, we can look at the average economic impact of mobile money on individuals in these countries to better understand how it affects livelihoods. Mobile money’s contribution to GDP per capita by the end of 2023 ranged from $240 (2017 PPP) in Tanzania to $530 in Ghana.
How policy can support mobile money and economic growth
These country-level studies reinforce previous findings that digital financial inclusion can drive long-term GDP growth. These findings can be used by regulators to resolve policy hurdles that typically slow mobile money adoption.
A 2024 GSMA study found that mobile money regulatory frameworks have progressed globally, but growth constraints remain. Kenya faces a lack of government-driven identity verification solutions and regulatory setbacks, including its grey-listing by the Financial Action Task Force (FATF) in 2024. Tanzania’s biometric SIM card registration initiative reduced fraud, but data privacy concerns and the requirement for national ID registration pose challenges.
The GSMA’s research found that mobile money’s impact on GDP is driven by more than mobile money penetration. Economic growth is also supported by higher mobile money transaction values and more widespread use of ecosystem transactions (merchant payments, international remittances, bill payments and bulk disbursements).
Another 2024 GSMA study found that the average cost of sending a cross-border mobile money remittance fell in 2024. With an average transfer fee of 3.54%, mobile money is the cheapest option for cross-border remittances. Despite this, it makes up only 4% of global transfers. As mobile networks and digital infrastructure spread into more regions, supportive policies can significantly expand mobile money remittances and support GDP growth.
Our new country-level insights can be accessed here, where we have published briefing notes on the economic impact of mobile money in Cote d’Ivoire, Ghana, Kenya, Senegal and Tanzania. For deeper insights into mobile money’s growing economic importance, register for the launch of the State of the Industry Report on Mobile Money 2025.