HomeNewsMerchant payment went up 94% in 2021 to stand at $66B
Merchant payment went up 94% in 2021 to stand at $66B

Merchant payment went up 94% in 2021 to stand at $66B

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In 2021, mobile money’s value proposition expanded beyond P2P transfers and cash-in/cash-out transactions. It is now an essential part of many people’s and enterprise’s daily life, particularly in low- and middle-income nations. The accounts are processing around $1 trillion transactions annually on different fronts, of which merchant payments are one form. 

According to, Merchant payments stood at 66B in 2021, a 94% rise from their 2020 figures. MoneyTransfers’ CEO Jonathan Merry attributes this growth to increased adoption of mobile money services.

Speaking on the development he said, “A definite trend is emerging towards a more digitized mobile money market. Many users are changing cash into e-money and either circulating it as such or using it virtually.”

Again, merchant payments have doubled in value, hitting $5.5 billion in monthly transactions. Providers say substantial incentives, such as remote onboarding processes, entice enterprises to their platform. For example, in East Africa and Kenya, over 18 percent of new merchants have self-boarded since Safaricom’s MPESA began allowing companies to register.

Why is merchant payment growing?

Several reasons explain why the merchant payment option for mobile money is snowballing. First, the fundamentals of merchant processing are straightforward. You register with a merchant payment provider to accept mobile payments from your consumers (and receive payment yourself for all of those payments.

Second, the payment processor collects fees from your transactions and deposits the remainder into your business account. Selecting the appropriate choice enables your firm to spend less, get more helpful information, and find solutions specific to your business. You can enjoy all of that courtesy of constant interactions with the payment processor.

The COVID-19 outbreak has helped in deploying merchant payment systems. Most people used virtual, no-contact means to purchase items, pay bills, and raise money for various courses. The value of merchant payments reached $66 billion in 2021 due to this sustained rise. Besides, the providers charge reasonable transaction fees.

Merchant payments lift the vulnerable

Mobile money has fueled financial inclusion for the world’s most disadvantaged, mainly women in developing countries. These are using mobile money to gain more economic independence. According to’s analysis of Adoption Survey data, 44 percent of providers now provide credit, savings, or insurance products, allowing marginalized people to invest in their livelihoods and futures. 

Payment merchants have eased the acquisition of such credits besides insurance premiums. In Kenya, for instance, one would only need a mobile phone and a pay bill number to remit such a payment. The sector is likely to maintain its growth in 2022 due to its goodwill from users.

Elizabeth Kerr
Elizabeth Kerr
Elizabeth is a financial content specialist from Manchester. Her specialities include cryptocurrency, data analysis and financial regulation.