Mobile Money covers 16% population in sub-Saharan Africa (Africa)
Money transfer via mobile phones has expanded to 16 percent of the total population in sub-Saharan Africa, according to a new World Bank study, as reported by Mobile Money Africa. The Global Financial Inclusion Database, or Global Findex, has found only 3 percent of the population in the rest of the world take advantage of money transfers through mobile phones.
As per the report, in sub-Saharan Africa, take-up of mobile money services, pioneered by Kenya-based Safaricom’s M-Pesa service, has been boosted by the fact that traditional banking is hampered by transportation and other infrastructure problems.
A statement issued by World Bank claims that money transfers through mobile phones is a form of increasingly nontraditional banking that often doesn’t require users to travel or set up an account at a brick-and-mortar bank. Further, such mobile banking allows account holders to pay bills, make deposits or conduct other transactions via text messaging. Kenya, where 68 percent of adults report using a mobile phone for money transactions, has seen particularly impressive growth in this market.
As revealed in the report, said Asli Demirguc-Kunt, the Bank’s director of development policy and chief economist of the Finance and Private Sector Network, said that nearly two-thirds of the unbanked cite poverty as the obstacle to financial access, but about a third also blame the cost of opening and maintaining an account or the bank’s being too far away, which means long bus rides for many.
In markets like Uganda, mobile money transfer services have become a revenue generator, with players hotly competing for users as margins on voice services have been driven down over the years. MTN Uganda, for example, has more than 2 million registered customers after launching in March 2009. MTN reported recently that US$100 million gets transferred over the service every month.
The four mobile money offerings in Uganda including MTN Mobile Money, Airtel Money, Warid-Pesa and Uganda Telecom’s M-Sente are largely similar, allowing registered users to load money into their accounts, make transfers to other users, buy recharge vouchers as well as withdraw money.
MTN Group increases MTN Mobile Money presence in Zambia (Africa)
The MTN Group announced last week that its increasingly popular MTN Mobile Money service will now be available through the extensive MTN agent network and Banc ABC branch network in Zambia, further improving accessibility to financial services via the convenience of mobile telephony for thousands of Zambians.
According to a company report, in terms of the strategic partnership with Banc ABC, MTN customers will be able to load and withdraw money from their mobile phones using MTN Service Centres, MTN agents, Connect Stores and the Banc ABC branch network.
Christian de Faria, Group Commercial Officer, MTN Group, has said that the phenomenal uptake of Mobile Money in Zambia is a clear indication that an increasing number of Zambians are excited to finally have the ability to conduct financial transactions through their mobile phones.
MTN Mobile Money creates a safe environment for the banked and unbanked portion of the population to perform basic banking transactions. In some of the markets where the service is offered, customers are now able to pay their utility bills, among other transactions, using MTN Mobile Money. MTN has successfully deployed its MTN Mobile Money service in 11 other markets, including Uganda, Swaziland, Ghana, Cote d’Ivoire, Cameroon and Rwanda.
De Faria adds that the launch of MTN Mobile Money in Zambia is opening up plenty of exciting opportunities in terms of financial services inclusivity. For them, MTN Mobile Money is integral to their efforts to increase accessibility to financial services for people in their markets.
He added that the agreement with Banc ABC also confirms our commitment to continue exploring innovative ways to make our products as accessible as possible within the Zambian market.
The launch of the MTN Mobile Money service with Banc ABC will enable MTN subscribers to open a mobile money account at any of the bank’s 19 branches and 10 mobile banks across Zambia. Subscribers will, upon registration, be able to load and store electronic money on their mobile phones and use their mobile number as an account number.
says Abdul Ismail, Chief Executive Officer, MTN Zambia has said that the unique feature of MTN Mobile Money is that customers can send money to any cellphone user on MTN or other networks. This joint partnership with Banc ABC as an MTN Mobile Money agent will assist greatly in agent liquidity and providing cash-in and cash-out services for their customers.
MTN Mobile Money is currently being utilised by over 6 million customers across the MTN footprint, with over 2 million of those users in Uganda.
MTN Rwanda soon to offer standard regional services
MTN Rwanda subscribers will soon receive the same services offered by the MTN Group in Johannesburg to all its subsidiaries on the continent. Speaking to The New Times in Kampala, Nigel William, MTN Uganda’s Chief Financial Officer (CFO), said that MTN aims at offering standard services on the MTN Rwanda subscribers will near future will be enjoying the serives MTN Group offers in Johannesburg to all its subsidiaries across 20 nations in Africa. Nigel William, MTN Uganda’s Chief Financial Officer (CFO), said that MTN aims at offering standard services on the African continent where it operates in more than 20 countries including the Middle East. He further revealed that the offerings will initially begin at regional level, that are being currently offered in Rwanda and Uganda.
The standard services comprise of provision of the MTN zone, MTN mobile money, MTN Internet and Home and Away package among others. The MTN mobile money product is still being tested in Uganda Offering standard services has already began with MTN subscribers from the two countries using one network under the ‘MTN Home and Away’ package. Subscribers of the two networks can now also load the same airtime.
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