Nigeria's mobile money agents face Kenya-style decline amid direct phone transaction surge

Between March and June 2026, Kenya lost 34,000 mobile money agents—a 5.6% drop from 602,470 to 568,463—while subscriptions grew 1.2% to 54.01 million, according to the Communications Authority. The shift stems from Kenyans transacting directly via phones using Buy Goods tills, Pochi la Biashara wallets, and PayBill numbers, reducing need for cash-in/cash-out agent visits. Safaricom still controls 88.8% of subscriptions, but agents' core commission income vanishes when customers pay merchants or settle bills digitally.

This mirrors Nigeria's evolving mobile money landscape, where OPay, PalmPay, and Paga users increasingly pay for goods, utilities, and services straight from apps—bypassing agents who relied on deposit/withdrawal fees. As smartphone penetration rises and regulatory scrutiny grows, Nigerian agents face squeezing margins from rising rents and salaries amid declining foot traffic.

The lesson is clear: survival depends on diversifying beyond cash transactions. Agents should explore becoming merchant service hubs, offering value-added services like bill payments or airtime resale, or partnering with banks for hybrid models. Will you adapt your agent business to thrive in a cash-lite future, or risk obsolescence as Kenya's 34,000 closed shops demonstrate?

SOURCE: https://techcabal.com/2026/09/29/why-kenyas-mobile-money-agents-are-under-pressure/