The power of 400 million merchants across emerging markets

The power of 400 million merchants across emerging markets

Small merchants in emerging markets form the backbone of local economies, encompassing an estimated 300 million to 400 million merchants across Africa, Asia, and Latin America. Contributing up to 60% of GDP and 70% of total employment, they are pivotal drivers of economic activity.

Yet, many face systemic challenges like limited access to technology and formal financial services.

Airvantage, a global leader in mobile financial solutions, is addressing these barriers with innovative handset financing and merchant loan solutions. By leveraging its expertise in emerging markets, Airvantage empowers merchants to expand their operations, embrace digital tools, and drive sustainable growth.

Nearly 45% of people in sub-Saharan Africa and 40% in South Asia lack access to smartphones, according to GSMA’s 2024 Mobile Economy Report

Without smartphones, merchants miss out on digital tools like mobile payments and e-commerce platforms essential for scaling their businesses. Compounding this challenge is the lack of formal credit: fewer than 10% of small businesses in emerging markets can access traditional loans. This exclusion traps merchants in cycles of stagnation, unable to invest ininventory, technology, or infrastructure.

Airvantage bridges this gap by offering solutions tailored to the realities of emerging markets, combining mobile technology with innovative financing to drive inclusion.

Handset financing - transforming access

Airvantage’s handset financing solution allows merchants to acquiresmartphones without upfront costs, paying for devices in manageable instalments linked to their mobile usage. Their scalable approach ensures millions of merchants gain access to the tools they need to thrive in the digital economy.

Merchant loans - unlocking growth potential

Airvantage’s merchant loan solutions provide small businesses with the working capital to scale. By leveraging mobile data for credit scoring, Airvantage offers loans as small as $500 to $5,000, addressing the specific needs of merchants in underserved markets, with:

• flexible repayment models.
• increased financial inclusion.
• significant impact on growth.

Through partnerships with mobile network operators and fintechs, Airvantage delivers these solutions seamlessly, driving economic empowerment at scale.

The ripple effects of handset financing and loans solutions extend beyond individual merchants. When merchants thrive, entire communities benefit:

• Local economies grow, with studies showing a 1.2% GDP increase for every 10% rise in digital financial inclusion.
• Telecom operators see increased customer retention, with an average 15% uplift in ARPU (Average Revenue Per User), according to GSMA research.
• Merchants access new opportunities, breaking the cycle of financial exclusion and achieving sustainable growth.

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With 300 million to 400 million merchants in emerging markets, the opportunity to drive growth and innovation is immense. Airvantage’s handset financing and merchant loan solutions provide the tools to empower merchants, bridging the digital divide and enabling them to thrive in the digital economy.

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