Mobile money muscles into African market
Speed, convenience of service has proved popular in sending cash home
MOBILE money is a growing market in Africa today, with 12 percent of adults in the region having access to a mobile money account. This was among the issues discussed on the first day of this year’s AfricaCom conference at the Cape Town International Convention Centre yesterday.
Tumi Chamayou, Ericsson’s vice-president of strategy, marketing and communications, told delegates that a digital Africa is the foundation for a sustainable future.
She said broadband has increased by 25 percent in the last quarter on the continent and in Nigeria there is a new subscriber every second.
Chamayou said the usage of LTE will increase by 28 percent from now until 2021.
She said banks and governments work in a certain way and consumers need to find ways to utilise information communication technology (ICT).
She said in the automotive industry, for instance, companies such as Tesla and General Motors both had similar issues involving the software problems in their vehicles.
“General Motors sent out a note to all its users to say they need to bring their vehicles to the factory to get it repaired.
“Tesla, meanwhile, called all its customers and told them not to use their cars and that a software update will correct the problem.
“Shortly after, that update was downloaded and the car was ready to drive again.
“One of those practises is extremely efficient.”
She also highlighted how the music industry was one of the first sectors to change the entire value chain through technology, from the producer to the consumer.
Chamayou said it was important for businesses to learn their customers’ behaviour patterns and how they want to interact with their services.
“They realised that if a consumer can pick and choose what they want, then I as a business need to rethink how it is I want to produce and deliver content that meets their needs.”
She highlighted that more than 13 countries in the region had mobile money penetration.
Meanwhile, Alix Murphy, the senior mobile analyst at WorldRemit, said the firm is performing the role of translator, enabling people around the world to send money instantly from their smartphone to EcoCash, M-Pesa, MTN Mobile money, Airtel Money, Tigo Pesa, Zaad, and others.
She said the speed and convenience of a true mobile-to-mobile service has proved incredibly popular with many sending money home: “More than half of all WorldRemit money transfers to Africa now go to mobile money accounts.
“We are seeing fascinating behavioural trends emerge.
“People are using mobile money transfers more like they use instant messaging than traditional remittance services.”
PEOPLE ARE USING MOBILE MONEY TRANSFERS MORE LIKE THEY USE INSTANT MESSAGING THAN TRADITIONAL REMITTANCE SERVICES