Vodafone Group has inked an agreement with South Africa’s MTN Group to interconnect mobile money services.
Following the deal, customers of M-Pesa and MTN Mobile Money in East Africa will be able to transfer money to each other.
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The deal will also allow convenient and affordable international remittances between M-Pesa customers in Kenya, Tanzania, Democratic Republic of Congo and Mozambique, and MTN Mobile Money customers in Uganda, Rwanda and Zambia.
As per the terms of the agreement, MTN Group and Vodafone Group will also share best practice and work together to define the rules and standards of mobile-based remittances in Africa.
Vodafone director of mobile money Michael Joseph said: "Our agreement with MTN to connect our mobile money wallets in East Africa is a fantastic example of co-operation and interoperability between competing mobile operators. By working together, we will deliver cheaper, faster money transfers, improving the lives of many people living in the seven countries involved."
MTN Group head of mobile financial services Serigne Dioum said: "Together, we aim to build a scalable model that will accelerate remittance roll-out across the continent."
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