In the Middle East and Africa (MEA), mobile wallets have transformed into a large and diverse market, home to approximately 50 unique brands and providers. A recent e-book by Thunes, a Singapore-based cross-border payment infrastructure provider, looks at this burgeoning landscape, revealing a complex ecosystem shaped by domestic fintech leaders and telecommunications firms.

Local champions lead the way

In many MEA markets, domestic mobile wallets have emerged as clear market leaders, with Egypt’s Fawry, Kenya’s M-Pesa, Nigeria’s OPay, and Turkey’s Papara exemplifying this trend.

Fawry controls 40% of Egypt’s mobile wallet market, while M-Pesa has an extraordinary 95% share in Kenya. In Nigeria, OPay leads with 51%, and in Turkey, Papara holds a significant 32% share.

The dominance of these players can be attributed to a number of factors. For one, these companies have a deep understanding of local payments behaviors and needs. They tailor their offerings with local contexts in mind, offering interfaces in local languages, integrating with national identification systems, and supporting low-tech communication channels.

For example, M-Pesa from Kenya pioneered mobile money through SMS. The solution allows users to deposit money into an account stored on their cell phones, send balances using PIN-secured SMS text messages to other users, including sellers of goods and services, and redeem their deposits from a network of agents.

Trust is another critical factor. In areas where financial literacy is still developing, users prefer familiar, locally-rooted brands. In Nigeria, for example, the rise of OPay has been fueled by the company’s strong on-ground presence, agent networks, and heavy investment in branding. These have reinforced credibility and user confidence.

Telcos and mobile money drives financial access

Across many African nations, telecom operators were the first to offer mobile wallets, long before banks or fintechs entered the space.

M-Pesa by Safaricom is a global benchmark for mobile money success. The service was first launched in Kenya in 2007 before expanding to markets including Tanzania, Mozambique, the Democratic Republic of the Congo (DRC), Lesotho, Ghana, Egypt, Afghanistan, South Africa and Ethiopia.

Other major telco-led wallets include MTN MoMo and Airtel Money. MNT MoMo started in Uganda in 2007, initially offering peer-to-peer (P2P) payments. Since then, MNT MoMo has expanded into 16 countries, evolving into a robust e-wallet platform.

Airtel Money, offered by India’s Bharti Airtel, allows users to manage funds from their phones, including storing value, making purchases, and transferring money seamlessly. Today, Airtel Money operates across more than a dozen markets, including Gabon, Tanzania, Madagascar and Malawi.

In Ghana, Kenya, and Egypt, telco-led wallets remain dominant. In Kenya, M-Pesa dominates with a staggering 95% share. In Ghana, the mobile wallet market is led by MNT MoMo with a 55% share, followed by Vodafone Cash at 20% and AirtelTigo Money at 15%. Finally, in Egypt, Vodafone Cash and Orange Money rank second and third respectively, with shares of 30% and 15%, respectively.

Strong use of bank wallets in urbanized, higher-income markets

In more urbanized and financially developed markets, bank-owned mobile wallets hold a prominent position. In South Africa, for example, bank wallets command a market share of 41%, making them the top mobile payment method.

In Turkey and Saudi Arabia, these apps rank second in market share, with 23% and 18%, respectively. The United Arab Emirates (UAE) also see significant usage, with bank wallets holding a 15% share and ranking third overall.

Widespread adoption of bank wallets in these markets reflects the relatively high level of trust in traditional financial institutions. These markets also tend to have higher bank account penetration rates, making bank wallets a natural extension of existing customer relationships.

In South Africa, the UAE and Saudi Arabia, over 80% of the adult population had a bank account in 2021, according to the World Bank.

Apple Pay leads in the Gulf

In the more digitally advanced and affluent parts of MEA, global tech wallets have established a strong foothold. Apple Pay, in particular, is the leading mobile wallet in both Saudi Arabia and the UAE, with market shares of 36% and 27%, respectively.

Google Pay, and Samsung Pay are also well established across the region, holding significant shares in South Africa and the UAE.

The popularity of tech mobile wallets in these markets is fueled by several factors, including high smartphone penetration, widespread use of debit and credit cards, and a digitally savvy, middle- to upper-income consumer base.

In the UAE, for example, iPhones account for about 17% of the smartphone market, making Apple Pay a natural fit for mobile payments.

Largest mobile wallets by market share:

• Egypt: Fawry (40%)
• Ghana: MoMo (MTN) (55%)
• Kenya: M-Pesa (95%)
• Nigeria: OPay (51%)
• Saudi Arabia: Apple Pay (36%)
• South Africa: Bank mobile wallet apps (41%)
• Turkey: Papara (32%)
• UAE: Apple Pay (27%)

Mobile wallet distribution in key MEA markets:

Featured image: Edited by Fintech News Middle East, based on image by thanyakij-12 via Freepik