Mobile money in healthcare refers to the use of mobile phone-based payment systems like MTN Mobile Money, M-Pesa, Vodafone Cash, and Airtel Money to pay for medical services, medications, and health insurance premiums. In Africa and parts of Asia where over 60% of the population lacks traditional bank accounts, mobile money has become the primary digital payment method, making healthcare more accessible and reducing cash-handling risks for providers.
How Does Mobile Money Work?
Mobile money allows users to store, send, and receive money using their mobile phones without needing a bank account. The process works through a network of agents and digital wallets:
- Registration -- Users register for a mobile money account using their phone number and national ID at any authorized agent
- Cash-in -- Users deposit cash at an agent location, which is converted to a digital balance in their mobile wallet
- Transactions -- Users pay for goods and services by entering the merchant's number and confirming with a PIN
- Cash-out -- Users can withdraw physical cash from any agent location when needed
The entire system runs on basic USSD technology, meaning it works on any mobile phone, including feature phones without internet access. This is what makes mobile money uniquely accessible in developing markets.
Major Mobile Money Providers in Healthcare Markets
| Provider | Parent Company | Primary Markets | Active Users (2025) | Healthcare Relevance | |---|---|---|---|---| | M-Pesa | Safaricom/Vodafone | Kenya, Tanzania, DRC, Mozambique, Ghana | 65+ million | Largest mobile money platform; deep healthcare integrations | | MTN Mobile Money (MoMo) | MTN Group | Ghana, Nigeria, Uganda, Cameroon, Ivory Coast | 80+ million | Dominant in West Africa; pharmacy payment integrations | | Airtel Money | Airtel Africa | Uganda, Kenya, Tanzania, Malawi, Zambia | 35+ million | Growing healthcare payment partnerships | | Vodafone Cash | Vodafone | Ghana, South Africa | 10+ million | Strong presence in Ghana pharmacy market | | Orange Money | Orange Group | Senegal, Mali, Ivory Coast, Cameroon | 30+ million | Leading in Francophone Africa | | Tigo Pesa | Millicom | Tanzania, Ghana | 8+ million | Integrated with hospital payment systems | | bKash | BRAC Bank | Bangladesh | 70+ million | Largest mobile money in South Asia | | GCash | Globe Telecom | Philippines | 90+ million | Expanding into healthcare payments |
Mobile Money Healthcare Use Cases
Pharmacy Payments
Patients pay for medications at the pharmacy counter using mobile money instead of cash. The pharmacist enters the amount, the patient confirms on their phone, and the transaction completes in seconds. This is particularly valuable for expensive prescriptions where carrying large amounts of cash is risky.
Hospital Bill Payments
Hospitals accept mobile money for outpatient consultations, laboratory tests, imaging services, inpatient stays, and surgical fees. Patients can make partial payments, settle outstanding balances remotely, or have family members send payment from a different location.
Health Insurance Premium Payments
NHIS and private insurance schemes in Ghana, Kenya, and Tanzania allow members to pay premiums via mobile money. This has significantly increased insurance enrollment in rural areas where bank branches and insurance offices are scarce.
Telemedicine Consultations
Mobile money enables patients to pay for virtual doctor consultations remotely. The payment is processed before or after the teleconsultation session, making digital healthcare services accessible without credit cards.
Community Health Worker Collections
Community health workers in rural areas collect payments for health services and medications using mobile money, eliminating the need to transport cash over long distances.
Emergency Medical Payments
In emergencies, family members who are not physically present can send mobile money to cover hospital admission deposits or emergency treatment costs instantly.
How Mobile Money Integrates with Healthcare Software
Integrating mobile money into pharmacy and hospital management systems requires specific technical capabilities:
API-Based Integration
Healthcare software connects to mobile money provider APIs (application programming interfaces) to initiate, process, and confirm payment transactions. Each provider has its own API with specific authentication, request formatting, and callback mechanisms.
Payment Flow in a Pharmacy System
- Pharmacist completes the prescription and the POS calculates the total
- Patient selects mobile money as the payment method
- The system sends a payment request to the mobile money provider
- The patient receives a prompt on their phone and enters their PIN to confirm
- The mobile money provider processes the payment and sends a confirmation callback
- The POS records the payment, updates the transaction record, and prints the receipt
Payment Flow in a Hospital System
- The billing module generates the invoice for services rendered
- A mobile money payment request is sent to the patient's phone number
- The patient approves the payment via PIN entry
- The hospital system receives confirmation and marks the invoice as paid
- The payment is reconciled in the hospital's financial records automatically
Technical Requirements for Integration
| Requirement | Description | |---|---| | API credentials | Registered merchant account with each mobile money provider | | SSL/TLS encryption | Secure communication between healthcare software and payment APIs | | Callback handling | Server endpoint to receive payment confirmation notifications | | Timeout management | Handling of delayed responses (mobile money can take 5-30 seconds) | | Reconciliation engine | Matching payments to invoices and handling partial payments | | Multi-provider support | Ability to accept MTN MoMo, M-Pesa, Vodafone Cash, and others simultaneously | | USSD fallback | Support for USSD-initiated payments when smartphone apps are unavailable |
Benefits of Mobile Money in Healthcare
Increased Payment Access
Over 400 million people in Sub-Saharan Africa have mobile money accounts but no bank account. By accepting mobile money, healthcare facilities serve patients who cannot pay by card or bank transfer. This directly increases the addressable patient population.
Reduced Cash-Handling Risks
Pharmacies and hospitals that handle large amounts of cash face theft, counterfeit currency, and accounting errors. Mobile money payments go directly to the provider's account, reducing physical cash on premises by 30-60% in facilities that adopt it.
Faster Payment Processing
Mobile money transactions settle in seconds, compared to the days required for check clearing or bank transfers. Healthcare providers have immediate confirmation that payment has been received.
Better Financial Tracking
Every mobile money transaction is automatically recorded with a timestamp, amount, sender, and reference number. This creates a complete digital audit trail that simplifies accounting and tax reporting.
Remote Payment Capability
Family members and sponsors can pay medical bills from anywhere. A parent in a rural area can send mobile money to pay for their child's hospital treatment in the city. This capability is not available with cash-only payment systems.
Lower Transaction Costs
Mobile money merchant fees typically range from 0.5% to 1.5% per transaction, significantly lower than credit card processing fees of 2-4%. For healthcare facilities with thin margins, this difference is meaningful.
Mobile Money Healthcare Statistics
The impact of mobile money on healthcare access is well documented:
- 73% of adults in Ghana have a mobile money account (Bank of Ghana, 2025)
- 68% of healthcare facilities in Kenya accept M-Pesa payments (Kenya Health Survey, 2025)
- 45% increase in NHIS premium payments after mobile money was accepted (Ghana NHIA Report, 2024)
- $2.3 billion in healthcare-related mobile money transactions across Africa in 2024 (GSMA Mobile Money Report)
- 37% reduction in unpaid hospital bills at facilities accepting mobile money (WHO Africa Study, 2024)
- 52% of pharmacy customers in urban Ghana prefer mobile money over cash (PharmAccess Survey, 2025)
Comparison: Cash vs. Mobile Money vs. Card Payments in Healthcare
| Factor | Cash | Mobile Money | Card Payment | |---|---|---|---| | Accessibility | Universal | 60-70% of adults in target markets | <15% of adults in most African markets | | Transaction speed | Instant | 5-30 seconds | 5-15 seconds | | Security risk | High (theft, counterfeits) | Low (PIN-protected) | Low (chip/PIN) | | Infrastructure needed | Cash drawer | Internet or USSD network | Card terminal + internet | | Transaction cost | None | 0.5-1.5% | 2-4% | | Audit trail | Manual recording | Automatic digital record | Automatic digital record | | Remote payment | Not possible | Yes, from any location | Only with card-not-present setup | | Works offline | Yes | USSD works without internet | Requires internet | | Reconciliation | Manual counting | Automated matching | Automated matching |
Challenges of Mobile Money in Healthcare
Transaction Limits
Mobile money providers impose daily and per-transaction limits that may not cover large hospital bills. A single surgery costing $2,000 or more may exceed the daily transaction limit, requiring multiple transactions or alternative payment methods for the remainder.
Network Downtime
Mobile money services occasionally experience downtime due to network congestion, system maintenance, or telecommunications infrastructure issues. Healthcare facilities must have fallback payment options available.
Agent Liquidity
In rural areas, mobile money agents may run out of float (digital balance), preventing patients from depositing cash into their mobile wallets. This can delay healthcare payments if the patient has no existing mobile money balance.
Provider Fragmentation
Different patients use different mobile money providers. A pharmacy in Ghana may need to accept MTN MoMo, Vodafone Cash, and AirtelTigo Money to serve all customers. Each provider requires a separate merchant registration and integration.
Fee Sensitivity
While merchant fees are low, they still reduce margins for healthcare facilities. Some small pharmacies resist adoption because even a 1% fee on thin-margin medications affects profitability.
How PharmaPOS Handles Mobile Money Integration
PharmaPOS includes built-in mobile money integration that supports MTN Mobile Money, M-Pesa, Vodafone Cash, and Airtel Money across all supported markets. The integration is seamless at the point of sale:
- Patients select mobile money as the payment method during checkout
- The system sends a payment request to the patient's phone automatically
- Payment confirmation appears on screen within seconds
- The transaction is recorded with full audit trail and receipt printing
- Daily reconciliation reports match mobile money payments to sales records
- Split payments are supported (part mobile money, part cash, part insurance)
This eliminates the need for pharmacists to manually process mobile money payments through separate provider apps, reducing checkout time and errors.
Frequently Asked Questions
Do patients need a smartphone to pay with mobile money?
No. Mobile money works on basic feature phones through USSD technology (dialing codes like *170# or *150#). Patients with any type of mobile phone can make payments, which is why mobile money reaches far more people than smartphone-only payment apps.
What happens if a mobile money payment fails during checkout?
The healthcare software should handle failed transactions gracefully. If a payment times out or fails, the system retains the pending invoice and allows the patient to retry the payment or switch to an alternative payment method. No charges are applied to the patient for failed transactions.
How do healthcare facilities reconcile mobile money payments?
Integrated healthcare software automatically reconciles mobile money payments with invoices and sales records. Daily settlement reports from the mobile money provider are matched against the system's transaction log. Any discrepancies are flagged for manual review.
Are mobile money healthcare payments secure?
Yes. Mobile money transactions are secured with PIN authentication, encrypted communication, and provider-side fraud monitoring. Healthcare software adds an additional layer by linking each payment to a specific invoice, patient, and transaction record. The security compares favorably with card payments and is far superior to cash handling.
Can hospitals accept mobile money for large bills?
Yes, but transaction limits may apply. Some mobile money providers allow enhanced limits for merchant accounts. For very large bills, hospitals can accept partial mobile money payments combined with other payment methods, or the patient can make multiple transactions across different days.
Next Steps
If your pharmacy or hospital wants to accept mobile money payments seamlessly, explore PharmaPOS for pharmacy operations or HospitalOS for hospital billing. Both systems include built-in mobile money integration for the major providers in African markets. Contact our team to see a live demo of mobile money payment processing.
