Malawi Hits 20 Million Mobile Money Subscribers Amid Rising Digital Payments

Malawi’s digital financial services (DFS) landscape continues to expand, with mobile money emerging as a key driver of financial inclusion and everyday transactions. According to the Reserve Bank of Malawi (RBM) National Payments System Report for the second quarter of 2025, the country’s registered mobile money subscribers reached 20.1 million by the end of June 2025, up from 17.6 million in the previous quarter, representing a 13.95 percent increase. This milestone underscores the growing adoption of mobile money as a convenient, secure, and accessible payment platform across Malawi.

The gender composition of mobile money subscribers reflects a narrowing gap, with male subscribers accounting for 55.31 percent and females 44.69 percent of the total subscriber base, improving from 41.85 percent in the first quarter. While this demonstrates progress toward gender inclusivity, women remain underrepresented relative to their share of the population, highlighting the need for targeted financial inclusion initiatives to encourage wider adoption among female users.

Despite the growth in subscriptions, activity rates among mobile money users showed a decline during the quarter. The 90-day activity rate dropped to 52.14 percent from 56.32 percent, while the 30-day activity rate decreased to 40.46 percent from 43.47 percent in March 2025. The Reserve Bank of Malawi notes that this decline is concerning, as mobile money is a central tool for promoting financial inclusion, and urges industry stakeholders to intensify campaigns encouraging active usage.

Mobile money agents, who form the backbone of the ecosystem, also saw significant growth during the period. The number of registered mobile money agents increased by 19.94 percent to 656,276, while the number of active agents over a 90-day period rose by 22.23 percent to 412,862. These agents play a critical role in facilitating cash-in and cash-out transactions, onboarding new customers, and providing essential liquidity, particularly in urban and semi-urban areas. However, rural coverage remains limited, with only 27.9 percent of agents operating in rural regions, and of those, just 46.1 percent were active over 90 days, compared to 85.2 percent activity in urban areas. This uneven distribution highlights the need for targeted expansion strategies to ensure that rural populations have better access to mobile financial services.

Analysis of the nature of mobile money transactions reveals that usage patterns are still heavily dominated by airtime top-ups, which accounted for 44.5 percent of transactions, followed by cash-in/cash-out activities at 33.4 percent. Person-to-person (P2P) and merchant payments accounted for 9.1 percent and 7.2 percent, respectively. While the high volume of airtime and cash transactions indicates widespread adoption for daily needs, the Reserve Bank and industry players continue to advocate for increased merchant payments, which would reduce reliance on cash, lower transaction costs, and enhance the efficiency of the digital payments ecosystem.

The report also highlights complementary growth across other digital channels. Mobile banking services saw an increase in subscribers to 1.8 million, with transaction volumes rising by 23.16 percent and values by 34.6 percent, reflecting uptake among banked users. Meanwhile, internet banking transactions also grew in both volume and value, indicating a broadening of digital financial services adoption beyond mobile money.

The Reserve Bank of Malawi emphasizes that the expansion of the mobile money agent network, along with rising subscriber numbers, is critical for enhancing financial inclusion. Initiatives to educate and onboard more women, increase rural agent presence, and diversify mobile money use cases remain a priority to ensure that the benefits of digital financial services reach all segments of the population.

In conclusion, Malawi’s mobile money ecosystem has achieved a significant milestone with over 20 million registered subscribers, reflecting strong consumer confidence and the continued growth of digital payments. While activity rates and rural access remain areas for improvement, the upward trajectory of adoption demonstrates the sector’s vital role in driving financial inclusion, supporting economic activities, and modernizing the country’s payments infrastructure.