There are now more than half a billion mobile money accounts in the world, mostly in Africa — here's why this matters

Mobile money allows people without banks to securely transfer funds via text message, and its adoption is growing rapidly.

By the end of today, you'll probably have used your bank account — maybe to buy groceries, pay rent, or send money to a friend. Even better, to receive your salary. It's something many of us take for granted.

However, for more than a billion people globally, transactions only happen with cash. That means carrying around physical notes and coins, traveling long distances just to send or receive money, and facing the constant risk of losing it or having it stolen. The absence of formal banking services adds yet another hurdle for people trying to escape poverty.

But in recent years, “mobile money” has transformed how many people access financial services. Mobile money differs from traditional bank accounts; you don’t need a physical bank branch or even an Internet connection. Instead, you use text messages for services like deposits, transfers, and payments via a mobile phone. In this sense, it’s not the same as standard Internet banking, which many of us now use for most transactions.

Many people might be unfamiliar with how mobile money works, so let me briefly explain. You dial a short code for the mobile money provider, choose “send money”, and enter the recipient’s phone number (which serves as their account number). Next, type the amount and your secure PIN. That’s it — both the sender and recipient get an SMS confirmation within seconds. If you need to add funds to your mobile money account or retrieve your PIN, you can visit a local mobile money agent, often found in small shops or kiosks, which can be easier to reach than traditional banks.

In this article, I'll look at how mobile money opens up new opportunities for bank account ownership in developing countries and why this matters.

More than half of mobile money accounts are in Sub-Saharan Africa

Mobile money boosts bank account ownership in Sub-Saharan Africa

Having a bank account might seem basic, but rising ownership is changing employment, safety nets, and aid systems

Flexibility: more freedom to work or study where you want

Safety net: risk spreading against unexpected income shocks

Aid: support from people in rich countries is now easier and cheaper

Without phones or IDs, many can't access mobile money

...read more at ourworldindata.org