Global mobile money transfer service WorldRemit has voiced its concern in the media about a potential merger between rival service providers MoneyGram and Western Union, saying it would potentially create a duopoly and lead to overcharging within the mobile money industry in some regions in Africa.

Senior mobile analyst at WorldRemit Alix Murphy is of the view that the merger could open the way for the united companies to gain full control of the offline segment of the remittance market – something she believes would have profound consequences for markets that are already overcharged.

"The reports about a possible merger between Western Union and MoneyGram raised major concerns about competition in the money transfer industry. While Western Union have called the reports about a possible acquisition of MoneyGram "not accurate", we have urged regulators to take a strong stance against any such undertaking," she said.

Murphy added, "Both companies maintain exclusivity arrangements with correspondent agent networks and have a history of anticompetitive practices. The Africa Progress Panel has denounced them for forming a 'Remittance Super Racket', which overcharges transfers to Africa, costing Africans over $1.9 billion every year."

WorldRemit quotes an Overseas Development Institute report which claims that on average, workers sending money home to sub-Saharan Africa pay a whopping 12% in fees.

In contrast, the GSMA notes that the average cost of sending $100 internationally using Mobile Money as a receive method is US$4 says Murphy.

"Most remittances to Africa are still picked up as cash. Fundamentally, moving from cash-based to digital financial transactions brings enhanced security and protection: cash is anonymous, whereas digital transactions have an audit trail from end to end, not to mention increased speed and reliability," she explains.

The challenges of competition and regulation aside , Murphy is upbeat about prospects in the mobile money industry going forward and the impact it continues to have on the lives of people.

According to the GSMA today there are 103 million active users of mobile money globally, up from 30 million in 2012, and 60% of these active users are in sub-Saharan Africa.

Finance has traditionally represented a key target market for technology solution service providers.

The rise of now established offerings in Africa, such as M-Pesa, M-Shwari and EcoCash, is rooted in the principle of financial inclusion or 'banking the unbanked'.

Although services like M-Pesa have dominated media coverage of this industry and have raised East Africa's profile in this regard, Murphy says West Africa has demonstrated significant growth of late.

"Most of the attention on mobile money has focused on Kenya's M-Pesa, but in fact many services in Africa have reached impressive scale," she says. "Services such as as Tigo Pesa in Tanzania and Rwanda, MTN mobile money in Uganda and EcoCash in Zimbabwe have some of the largest numbers of active users."

Likewise, people tend to think it's only East Africa where mobile money is strong, but actually West Africa has experienced remarkable growth over the past few months.

Murphy emphasised the main benefit mobile money offers. "(it) helps people who previously had little or no access to formal financial services to store, send or receive money securely on their mobile phone."

She points out that the World Bank recently recognised the impact that mobile money had on financial inclusion, especially in East Africa, where 12% of the total population now has a mobile money account.

"I have seen first-hand how mobile money can improve lives, businesses and whole economies, especially in the developing world. For billions of people around the world, mobile will be their first and only means of accessing financial services," she adds.