Africa has become a magnet for European
companies seeking to stake their claim in the continent’s mobile
payments market, with three new entrants announcing plans to
establish operations in nine countries in the past three months
alone.
companies seeking to stake their claim in the continent’s mobile
payments market, with three new entrants announcing plans to
establish operations in nine countries in the past three months
alone.
Their target is Africa’s largely unbanked
mobile phone user base which in 2007 grew by 60 million to reach a
total of 281 million, according to the International
Telecommunications Union.
mobile phone user base which in 2007 grew by 60 million to reach a
total of 281 million, according to the International
Telecommunications Union.
Most ambitious of all new entrants in terms of
geographic coverage is UK mobile technology developer Monitise,
which has teamed up with development organisation Made In Africa to
establish Monitise East Africa. The goal of the MEA joint venture
in which Monitise has a 51 percent stake, is to offer mobile
banking and payments services in eight countries: Uganda, Tanzania,
Rwanda, Burundi, Democratic Republic of Congo, Kenya, Sudan and
Zambia.
geographic coverage is UK mobile technology developer Monitise,
which has teamed up with development organisation Made In Africa to
establish Monitise East Africa. The goal of the MEA joint venture
in which Monitise has a 51 percent stake, is to offer mobile
banking and payments services in eight countries: Uganda, Tanzania,
Rwanda, Burundi, Democratic Republic of Congo, Kenya, Sudan and
Zambia.
Another UK company, mobile messaging vendor
Broca, has set its sites on Africa’s most populous country Nigeria
and its mobile phone user base of 47 million at the end of 2007. In
an initial pilot project Broca has formed an alliance with Nigerian
banking technology vendor Telnet Nigeria which will offer the
service to its banking clients.
Broca, has set its sites on Africa’s most populous country Nigeria
and its mobile phone user base of 47 million at the end of 2007. In
an initial pilot project Broca has formed an alliance with Nigerian
banking technology vendor Telnet Nigeria which will offer the
service to its banking clients.
Broca is not the only company attracted by
Nigeria’s potentially vast market. German mobile technology
developer paybox has formed an alliance with newly established
Nigerian financial services provider MoneyBoxAfrica. According to
paybox, the mobile banking service in Nigeria will be based on
scratch cards and will enable users to open accounts on the streets
and perform numerous functions. These include topping up mobile
phone air-time, paying utility bills, buying insurance, performing
person-to-person money transfers and withdrawing cash at agents’
locations or ATMs.
Nigeria’s potentially vast market. German mobile technology
developer paybox has formed an alliance with newly established
Nigerian financial services provider MoneyBoxAfrica. According to
paybox, the mobile banking service in Nigeria will be based on
scratch cards and will enable users to open accounts on the streets
and perform numerous functions. These include topping up mobile
phone air-time, paying utility bills, buying insurance, performing
person-to-person money transfers and withdrawing cash at agents’
locations or ATMs.
Ghana also appears set to become a key market
for UK mobile phone operator Vodafone following the completion of
its acquisition of 70 percent stake in Ghana Telecommunications
Company in a deal worth £483 million ($900 million). In a
statement, Vodafone announced that it plans include the launch of
M-PESA mobile payments service in Ghana.
for UK mobile phone operator Vodafone following the completion of
its acquisition of 70 percent stake in Ghana Telecommunications
Company in a deal worth £483 million ($900 million). In a
statement, Vodafone announced that it plans include the launch of
M-PESA mobile payments service in Ghana.
Launched in Kenya in mid-2005 in conjunction
with local mobile phone service provider Safaricom, Vodafone’s
M-PESA service has proved to be a resounding success, and currently
boasts some 2.3 million registered users. In April, Vodafone
extended its reach in Africa with the launch of the M-PESA service
in a venture with South African mobile service provider Vodacom, in
which Vodafone holds a50 percent stake.
with local mobile phone service provider Safaricom, Vodafone’s
M-PESA service has proved to be a resounding success, and currently
boasts some 2.3 million registered users. In April, Vodafone
extended its reach in Africa with the launch of the M-PESA service
in a venture with South African mobile service provider Vodacom, in
which Vodafone holds a50 percent stake.
Also indicative of the potential uptake of
mobile banking on the continent, South African bank ABSA, a unit of
Barclays Bank, reported in July that the number of customers using
its mobile banking service launched in 2000 had reached 630,000,
not far short of the 1 million customers using ABSA’s internet
banking service. Another South African bank First National Bank has
reported having 700,000. mobile banking customers.
mobile banking on the continent, South African bank ABSA, a unit of
Barclays Bank, reported in July that the number of customers using
its mobile banking service launched in 2000 had reached 630,000,
not far short of the 1 million customers using ABSA’s internet
banking service. Another South African bank First National Bank has
reported having 700,000. mobile banking customers.
