08/01/2017. There are 3 operators offering mobile money in Madagascar: Telma with Mvola, Orange money and Airtel money. Here are the results of a survey conducted in late 2016 / early 2017 on the usage habits of these money transfer services.
Mobile money in Madagascar
I remind you that mobile money allows you to make financial transactions with your mobile phone, more precisely with your phone number.
The providers of this service pay themselves by charging a fee when sending and withdrawing money.
Is the use of mobile money widespread in Madagascar?
In a low-banking country like Madagascar, mobile money is the best option to dematerialize the sending and receiving of money between individuals, but also for professionals.
Not surprisingly, the majority of respondents use this service: 87.41%.
What is the most used mobile money service in Madagascar?
- Mvola (from Telma) with 64%.
- Orange money with 26,40%.
- Airtel money with 9,60%.
These results are not surprising. Telma being the incumbent national operator and mobile money being attached to your phone number, those who are already Telma subscribers will naturally opt for the Mvola service.
Airtel money is clearly in last place. I have to admit that I always had trouble seeing where the Airtel money withdrawal points are… While you can find Telma and Orange shops everywhere (especially in shopping malls).
What is the main use of mobile money in Madagascar?
The majority of respondents (47.62%) indicate that they use mobile transactions mainly to send money to family or friends.
Indeed, it is common for employees in Antananarivo to send money to their parents in the provinces. Cheaper and safer than sending money by bush taxi, mobile money is the ideal solution in this case.
We note that the use of this service to pay for goods or services remains timid (16.67%). As a user of this service to pay for certain purchases, I must admit that it is not always easy to pay in store with your mobile phone. There are a lot of steps in the payment process, and sometimes the transactions don’t go through… So it takes much more time than paying in cash, or even by card. There are also cases where the cashiers just don’t know / don’t want to cash in with mobile money.
On the other hand, the payment of goods and services on the Internet in Madagascar is a very promising growth area for mobile money. Operators have created APIs (programs) for webmasters to automatically integrate mobile payments, but it is very little used (not at all). As the owner of an e-commerce website in Madagascar, I can tell you that the simplest is still the “manual” processing of mobile money transactions or the use of an invoice tracking software such as Openflex.
What is the average amount of mobile money transactions?
Nearly half (49.60%) of mobile transactions are between 50,000 and 200,000 Ar. Then for 33.60% the transactions amount to a maximum of 50,000 Ar.
That is to say that more than 3/4 of mobile money transactions are less than 200,000 Ar.
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