MTN takes phone banking to Africa
17 March 2009
South African mobile phone company MTN is to expand its mobile banking services to countries in Africa and the Middle East, the company said in a statement on Monday.
The group said the successful launch of its mobile money transfer programme in Uganda marked the beginning of a series of planned launches across its international operations.
The product, called MTN MobileMoney, will allow customers to manage money and make payments from their mobile handsets.
The service is not new to South Africa, where MTN MobileMoney has been offering financial services by cellphone since 2005. However, the company will now expand into 20 other countries in 2009.
Specialist mobile financial services provider Fundamo will provide the software in a deal worth US$9.7-million, MTN said.
Mobile banking has become popular in the developing world, where most cannot afford to use traditional banks that charge hefty account fees.
With MTN's mobile banking, customers will not have to open a traditional bank account, as deposits will be made into their mobile banking accounts at shops, bank branches and cash machines.
Customers will be able to check their balances, buy airtime and pay bills by sending instructions on their mobile phones.
MTN has been piloting mobile money transfer services through MTN Uganda and at the group's West and Central Africa region operations (Cameroon, Ghana, Cote d'Ivoire and Nigeria) since October 2008.
Five additional pilots were recently launched in Benin, Congo Brazzaville, Guinea Bissau, Guinea Conakry and Liberia.
"The pilots were aimed at waterproofing the systems and operational processes in preparation for the commercial launch.
"In each market, MTN has partnered with local banks to ensure that its Mobile Money Transfer services are fully compliant with financial services regulations."
MTN has more than 90-million subscribers on its networks.
Sapa
