Mobile money transactions recorded a 35% decline in the year ending 31 December 2016 at the back of the prevailing cash crisis which seen most mobile money operators battling to survive.
According to the Postal and Telecommunications Regulatory Authority (POTRAZ) fourth quarter report, mobile money transactions decreased by 35% with across networking transactions going down by 44%.
As TechnoMag rightfully predicted recently that mobile money was a sector breathing its last, the POTRAZ report has put the final nail to the coffin carrying all mobile money operators which include EcoCash, Telecash, GetCash and One Wallet.
The total number of active mobile money subscriptions increased by 0.7% to reach 3 221,059 from 3,199,568 in the third quarter of 2016. An active mobile money subscription is one that has used mobile money services to send or receive money, purchase airtime or to make payments in the last 90 days.
“Also noteworthy, is the decline in the value of mobile money transactions where the value of cash in and cash out transactions declined by 35%.
“This shows the impact of cash shortages is having on mobile money transactions, which if not addressed, can cause further decline in mobile money transactions, rendering Mobile money business unviable due to low volumes,” said Potraz.
The prevailing cash crisis is now making it almost impossible for subscribers to make cash-out transactions even for as little as $5, is a setback to the financial inclusion plan. Mobile money was touted as the key driver to financial inclusion by virtue of its wide network coverage.