Mobile money agents are the backbone of financial inclusion, bridging the gap between digital finance and cash-based economies. However, misconceptions about their role persist. Let’s set the record straight!
1. Myth: Mobile Money Agents Make Easy Money
Reality: Running a mobile money business isn’t a shortcut to wealth. Agents earn commissions per transaction, but margins are thin. Agents require intense daily liquidity management support.
To be successful, agents need to process at least 50 transactions daily. Because deposits and withdrawals never alternate, they run often either out of float or cash. Agents must rebalance on at least 60% of days and often several times per day. Which is costly and time-consuming.
Rural agents face even greater difficulties, lower commissions (smaller transaction value) transactions lopsided towards cash out, and high travel and time costs, let alone the risk.
2. Myth: Becoming a Successful Agent is a Walk in the Park
Reality: Customer service is a strong determinant of the profitability of agent outlets. Important characteristics of a successful agent location include:
- Privacy and security
- Friendly and speedy service
- Cash and float availability
2. Myth: Mobile Money Agents Only Handle Mobile Money Transactions
Reality: Today’s agents do more than deposits and withdrawals! They facilitate:
- Airtime & data bundle sales
- Utility bill payments (electricity, water, TV subscriptions)
- Business-to-business (B2B) payments
- Microloans & financial services
Agents are evolving into mini financial hubs, helping customers access essential services beyond transactions for the mobile money provider.
3. Myth: Digital Wallets Are Replacing Mobile Money Agents
Reality: While Mobile Money is growing, cash is still king in many developing economies. In rural and underserved areas, agents remain the most accessible financial service providers converting eMoney into cash.
In sub-Saharan Africa, cash-in/cash-out transactions make up over 60% of mobile money flows – proving that agents are still crucial! For the majority of Africans, Mobile Money remains a cash-to-cash service. 70% of cash deposits at M-PESA agents are being withdrawn within 20 minutes (by the recipient).
5. Myth: Mobile Money Agents Are Not Tech-Savvy
Reality: Today’s agents use smartphones, business apps, and analytics tools to track transactions, manage cash flow, and grow their business.
Trend Watch: More than 75% of agents now use mobile apps for business management, showing a shift toward digital operations.
How PesaKit Supports Agents
At PesaKit, we empower agents to succeed! Our platform provides:
- Access to working capital loans to manage cash and float on real-time basis instantly
- Additional revenue streams like airtime sales & bill payments & ticketing.
- Smart insights and business support help agents predict transaction volumes and plan and borrow accordingly to avoid endless visits to the bank for rebalancing.
- PesaKit Academy – We offer financial literacy training to help agents improve their financial management skills and grow their businesses.
Follow PesaKit for more insights on last-mile money solutions, fintech trends, and mobile money growth!