Mobile Money and the African Sports Betting Market

Even though technology is getting better around the world, sports betting in Africa is still mostly done online and hasn't reached its full potential yet. Previously, restrictive gambling laws made it difficult for the online betting sector to thrive. However, the introduction of mobile money transactions resulted in significant progress. Mobile money has increased betting industry safety and gaming convenience, thus encouraging more operators to invest in the future of the African sports betting market. Africa actively embraces new technological developments, and gaming investors are expanding into new markets motivated by multiple enabling factors, among them the ease of payment offered by mobile money.

The Popularity of Mobile Sports Betting in Africa


In order to make money, many African countries have decided to get into the gambling business. Some nations, for example, in Kenya, are now gambling primarily for financial gain and not only for recreation. On the other hand, South Africa accounts for roughly 80% of all gambling revenues in Africa generating over 2 billion dollars every year. It means that the majority of its citizens enjoy gambling. In a similar way, Ghana's national revenue authority says that sports revenues bring in up to $3.5 million net each month.

Because sports betting brings in so much money, markets for it are growing quickly in Africa. Nigeria has become a thriving market, trailing only Kenya and South Africa. Uganda, Morocco, Tanzania, the Democratic Republic of the Congo, and Botswana are all great places to gamble. With Congolese licensed bookmakers online such as Paridirect.com, the government of Congo has managed to get betting off the streets and close down illegal gambling kiosks. The advancement of telecommunication services is driving the majority of these gaming activities. Telecommunications facilitate mobile money transfers and other online payment services.

Mobile Money Usage in Africa


Using mobile payments instead of credit and debit cards is a way for everyone to be financially included. Because the internet is fast these days, more and more people are using mobile money and mobile banking services. Mobile money is used in many African countries, like Ghana, Kenya, Uganda, Nigeria, and South Africa. These countries have emerged as the world's most mobile penetrators. Mpesa, Airtel Money, and Zamtel Money are mobile payment systems used in Kenya, South Africa, and Zambia.

According to Economic and Financial Affairs, Kenya recorded $55.1 million in mobile transactions in 2021. Cell phones are used to make payments by more than 84% of internet users in the country. A comparable situation exists in Nigeria, where 60% of internet users made mobile payments in the same year. In Ghana, approximately 40% of citizens used mobile payments. According to statistics, approximately $126 billion in mobile transactions will be recorded in 2021. Ghana is without a doubt one of the fastest-growing mobile money markets.

Is Mobile Money Safe For Online Transactions?


In general, mobile money transactions are secure. Mobile money transfers allow users to deposit and withdraw funds instantly. Transfers are made to other users via PIN-protected messages. Personal information about the user is also hidden to protect it from corruption. Even with these precautions taken by mobile money servers, mobile money transactions are not entirely secure.

Even though mobile money has many benefits, it has led to a few cases of corruption and a rise in crime rates. Mobile money works outside of a country's financial reporting system, so authorities can't keep an eye on mobile transactions. Money laundering risk factors undermine the security of mobile money transactions. They include the absence of credit risk, transaction speed, and the absence of face-to-face nature of mobile business.

Mobile phones are also made without anyone knowing who made them, which makes them a big risk in mobile money transactions. But this is fixed by verifying and identifying the user to make sure that the right person is making the transaction. As the technology advances, functional workarounds are emerging around these challenges, thus improving the credibility of mobile money.

How do Mobile Money and Sports Betting in Africa Function?


As more people bet and play games on mobile devices, the mobile gaming industry is booming. This is because of the increased use and accessibility of mobile phones. Mobile phones and the growing use of mobile money bode well for the future of the African sports betting market. Even Mobile phones also make it easier to receive and send money both online and offline, which is one of the hardest parts of sports betting. Mobile phones also make it easier to receive and send money both online and offline, which is one of the hardest parts of sports betting. As the number of mobile phones in Africa grows, so will the number of mobile betting platforms. The success of these platforms has already shown that betting can be very profitable.