The Mobile Money Market is still at its baby stage and it is going to boom. The opportunities are huge for existing and aspiring Mobile Money Agent Entrepreneurs.

Mobile payments in Nigeria are growing at an incredible pace according to data from the Nigerian Inter-Bank Settlement Scheme (NIBSS). Latest data shows mobile payments have increased by 391% since May 2019. Transaction volume and value have ballooned, especially in 2020. In January 2020, the volume of mobile payments topped 7.4 million transactions, up from just 724,803 in January 2019. That impressive growth has been consistent with payment traction trends since July 2019. The value of transactions between July 2019 and December 2019 nearly three times larger than the previous six months.

A question one might ask is: How can a mobile money agent make N200,000 in a month? Let's look at a scenario together. If a mobile money agent charges N200 per transaction (e.g for every cash in or cash out transaction) and is able to perform only 50 transactions in a day, that agent will go home with N10,000 in gross profit per day. If the Agent can maintain this streak for 20 days, the agent goes home with N200,000. This is by far more than the basic salary earned by a typical bank worker. If an experienced agent then decides to open up several other branches, and has up to 5 branches operating, the agent then is able to increase his/her gross profit per month to N1 Million. What if you were in a location where you could do up to 100 transactions in a day? Or 200? Or even more – like in a market? If you are wondering if you can do up to 100 transactions in a day, look at the long queues at ATMs. Everyone who uses an ATM is your potential customer. Indeed, there are agents who make over N2 Million monthly, based on the locations where they have positioned themselves. Depending on your vision, you can grow your mobile money empire to a chain of sub agents under you, in different locations, who you pay salaries. You can own a chain of micro banks. The Sky is your limit.

The short answer is Yes,  depending on how you position yourself. Here is why:

  1. People everywhere make financial transactions EVERYDAY. So there will always be demand for mobile money services, just like there will always be demand for food.
  2. Banks prefer to operate via mobile money agents. The business case for banks to continue to roll out branches is no longer there,” says Tajudeen Omokide, a senior manager at Y’ello Digital Financial Services, MTN’s financial services subsidiary. “Looking at the services people are doing in banking halls viz a viz the cost of infrastructure and security situation, a bank will gladly have customers served at an agent point.” THIS MEANS MORE BUSINESS FOR MOBILE MONEY AGENTS
  3. Every company needs distribution. The beautiful thing about the Mobile Money business is that the agent can grow to begin to offer other services, apart from Mobile Money, without leaving his/her location. With time, more companies will be reaching out to mobile money agents – giving them their products to sell to their local audience. This means more money for the Mobile Money agent.
The bottom line is that, if you take the Mobile Money business seriously, you can't get it wrong.