Mozambique’s ATM and POS terminal counts have fallen for five consecutive years while digital wallet agents have significantly increased. The government plans to tax EMIs and agents to enhance revenue collection. The number of bank accounts is rising, but EMIs now dominate with three times more accounts as compared to traditional banks.
Mozambique’s ATM availability has decreased for the fifth consecutive year, now at 7.4 ATMs per 100,000 adults, according to the Bank of Mozambique data. The country saw a decline from 11 ATMs per 100,000 adults in 2019, with a total of just 1,413 machines recorded last year.
Similarly, the number of POS payment terminals declined over the years, falling from 229 to 190 per 100,000 adults, resulting in a total of 35,470 terminals at the end of last year. This downward trend contrasts sharply with the increase in digital wallet agents, which rose to a record high of 1,686 per 100,000 adults in 2024, significantly up from 350 four years earlier.
Three Electronic Money Institutions (EMIs) operated by mobile telecoms provide financial services via mobile phones, facilitating transactions and payments for services. The growth of EMI agents has been remarkable, increasing by 12.2% in the first half of 2024 to more than 252,000, reaching all 154 districts in the country.
The Mozambican government plans to tax the commissions of agents and EMIs, which currently have around 20 million accounts. A government document revealed that steps to tax commissions are underway, including a drafted bill submitted to Parliament, despite limited details provided.
Furthermore, 787 mobile wallet agents have been registered with tax identification numbers, helping to expand the tax base and enhance revenue collection in the digital economy. The total number of bank accounts in Mozambique grew by 10% in 2024, reaching 6.2 million, but remains vastly overshadowed by the 19.87 million EMI accounts, which surged by 18.5% within the same timeframe.
In summary, Mozambique faces a decline in ATM machines and POS terminals, while digital wallet usage and agents see substantial growth. The government aims to tax financial services to boost revenue. Although bank account numbers are increasing, they lag behind the rapid expansion of EMI accounts, demonstrating a shifting landscape in financial access for Mozambique’s population.
Original Source: clubofmozambique.com
