2016

Mobile Money

in Latin America

& the Caribbean

Latin America saw a threefold rise in mobile money deployments in

the last five years, a faster growth rate than seen globally

2 Source: GSMA mobile money deployment tracker.

Mobile money deployments Markets with mobile money

The Caribbean

Central America

3

6

1

4

20162011

The Caribbean

Central America

6

10

1

20162011

6

South America

Latin America &

the Caribbean

17

33

3

10

South America

Latin America &

the Caribbean

8

17

3

8

Global 277116 Global 9263

Over the last five years, the number of deployments has risen

consistently across sub-regions

3Source: GSMA Mobile Money Deployment Tracker

Note: this graph recognises deployments operational at the end of each year

0

2

4

6

8

10

12

14

16

18

2011 2012 2013 2014 2015 2016

Central America

Caribbean

South America

Latin American deployments by sub-region, 2011 to 2016

Markets with lower account penetration and lower GDP per capita

have tended to show a higher adoption of mobile money

Source: GSMA data, World Bank Findex data. Adoption rate methodology: registered accounts / total GSM connections excluding cellular M2M

Definitions of market types: Type I markets: the lowest-income markets in the region, with the highest rates of financial exclusion on average. Type II markets: relatively high-income markets with

higher rates of financial inclusion, with some exceptions. The markets in between are likely to be hybrids of Type I and Type II markets. See: GSMA Latin America paper; CGAP methodology paper.

Type I and Type II markets by adoption rate

4

0

10

20

30

40

50

60

70

80

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000

Brazil

Bolivia

Colombia

Haiti Nicaragua

Ecuador

Dominican Republic

Guatemala

El Salvador

Paraguay

GDP per capita (USD) - 2014

Account at a FI (% age 15+)

Mexico

Honduras

Argentina

Peru

Adoption rate

scale

Low

Medium

High

Key

Type I

In between

Type IICountries with enabling regulation have solid bubbles

As mobile adoption reaches saturation, mobile money still stands to

capture a large addressable market, now equipped with smartphones

50

650

300

100

600

200

0

250

150

Dec

2015

Dec

2014

Dec

2012

Dec

2013

Dec

2011

Dec

2016

Millions

Source: GSMA and GSMAi data

Number of mobile connections: Total connections excluding cellular M2M

Number of smartphones: calculated using quarterly net smartphone additions, excluding cellular M2M

23M2M

Growth of registered mobile money accounts over addressable market in Latin America,

2011 to 2016

5

616M

575M

CAGR:

63.8%

CAGR:

1.4%

XMNumber of mobile

money accountsXM

Number of mobile

connectionsXM

Number of

smartphones

42M

337MCAGR:

51.7%

Mobile money in Latin America is still in its early growth phase.

Starting from a low base, it is outgrowing the rest of the world

Latin

America

90-day active

accounts,

millions

Growth of 90-day active mobile money accounts, 2011 to 2016

Source: GSMA data. Note: Rest of the World excludes Latin America.

CAGR is calculated between 2011 and 2016.6

0

5

10

15

2011 2012 2013 2014 2015 2016

Rest of the

World

90-day active

accounts,

millions

0

50

100

150

200

2011 2012 2013 2014 2015 2016

LatAm

CAGR:

51.3%

Latin America

Rest of the world

RoW

CAGR:

39.6%

LatAm Values

2016

Global Values

2016

Global Volume

2016

LatAm Volume

2016

The region’s use-case breakdown shows an unparalleled dominance

of ecosystem transactions

LatAm vs Global

Product Mix

2016

Ecosystem:

69%Ecosystem:

19%

Ecosystem:

70%Ecosystem:

26%

22.0%

3.9%

6.7%

0.1%58.3%

9.0%

61.1%

11.4%

2.2%

0.1%

5.1%

20.1%

Ecosystem

transactions

Airtime top-up

Bill payment

Bulk disbursement

International remittance

Merchant payment

P2P transfer

Key

7

Values:

395 mn

Volume:

US$ 3 bn

Values:

10 bn

Volume:

US$ 110 bn

2.9%

17.6%

46.6%

2.7%

2.8%

27.3%

5.4%

12.4%

7.2%

1.1%

4.7%

69.1%

Source: GSMA data

While peer-to-peer transfers increased steadily, digitizing ecosystem

transactions led to a steep rise in transaction volumes…

Volume of

transactions

(millions)

Transaction volume growth, 2011 to 2016

Source: GSMA data8

CAGR

2013 to 201662%

0

50

100

150

200

250

300

350

400

7Peer-to-peer transfers

Merchant payments

(inc transport payments)

Airtime top-ups

2016

243

22

92

395

310

Bill payments

20152013

International remittances

2014

Bulk payments

20122011

…and a decrease in the value of peer-to-peer transfers, showing a

vibrant and diverse mobile money market in Latin America…

Transaction value growth, 2011 to 2016

Source: GSMA data9

CAGR

2013 to 201626%

0

500

1,000

1,500

2,000

2,500

3,000

International remittances

2013

243

2014

1,881Bulk payments

2,806

1,414

Merchant payments

2012

Peer-to-peer transfers

Bill payments697

2016

2,377

2011 2015

Airtime top-ups

Value of

transactions

(USD millions)

…which has led to consistently higher activity rates across Latin

America, compared to the global and Sub-Saharan African averages

32

36

28

38

30

26

34

0

Dec 12 Jun 15Jun 12 Dec 15Jun 13Dec 11 Dec 14Jun 11 Dec 13 Jun 14 Jun 16

90-day

activity rate

(%)

90-day activity rates, 2011 to 2016

Source: GSMA data

Activity rate = 90-day active accounts / Registered accounts10

LatAm Global Sub-Saharan Africa

Latin

America

35.8%

Global

32.6%

Sub-Saharan

Africa

31.0%

11

Mobile money has supported the digitisation of more cash in Latin

America

90.4%

0.8%

1.2%

7.6%

100%

2016

2013

Source: GSMA data

Global

Incoming

transactions

US$ 3.8 billion

Incoming

transactions

US$ 8.4 billion

38.3% 13.2% 45.1% 3.4%

100%

Incoming

transactions

US$ 75 million

47.6% 47.1%2.7% 2.7%

100%

Incoming

transactions

US$ 259 million

Latin America

80.5%

100%

10.2%

8.5%

0.8%

International remittances Bank-to-Wallet transcationsBulk disbursements Cash-in transactions

Evolution of incoming transaction values per month, 2013 vs 2016

Operators stand to take advantage of a significant opportunity for

growth by increasing the adoption of mobile money

90-day activity rate on GSM customer base per mobile money deployment, June 2016

Source: GSMA data.

Activity rate calculation: active 90-day mobile money customers / unique mobile subscriber for every operator

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Mobile money deployments

90-day

activity rate

12

Deployments with

a high activity rate

Deployments with

a low activity rate

57 millionthe number of 90-day accounts

mobile money services could gain if

they convert 10% of their

subscribers to active MM users

Deployments are arranged by activity rate in descending

order. High-activity deployments start on the left, moving

towards low-activity deployments on the right.