|View printer-friendly version|
|Fundamo Reports Accelerated Mobile Financial Services Growth in Africa|
In Africa, Fundamo now powers 27 deployments in 19 countries.
Cape Town, South Africa, November 13th, 2012: Fundamo, a Visa Inc. company and a leading specialist mobile financial service provider, today reported accelerated growth of mobile financial services in Africa. In 2012, Fundamo has launched three new services – FirstMonie with First Bank Nigeria in Nigeria and Celpay with Celpay International in Uganda and Zimbabwe. Fundamo now supports a total of 27 deployments in 19 countries across Africa. Fundamo’s success is testimony to the demand for mobile financial services driven by the needs of 647 million consumers in Africa that do not have a formal bank account (World Bank, 2012).
"Earlier this year the industry celebrated a decade of banking the unbanked. The market has transformed since we launched the world’s first mobile financial service in a developing economy with Celpay in Zambia. Mobile money providers are rapidly diversifying and consumers are demanding access to more sophisticated services," said Hannes van Rensburg, CEO, Fundamo, a Visa company. "One thing hasn’t changed – Africa, the cradle of mobile financial services, continues to lead the world with a swath of new deployments in 2012."
Spotlight on Nigeria
A recent survey by Fundamo and Visa, the Visa Mobile Money Study, revealed that consumers have sophisticated financial service needs that go well beyond the established transaction set offered by mobile money services today. For example, the majority of consumers surveyed in Nigeria intend to use mobile money to save money for their family (59%) and pay utility bills (58%). To meet this demand FirstMonie offers consumers a host of advanced services including utility payments (airline tickets, electric, insurance), cash withdrawal from an ATM without a bank card, and payment for goods at merchant locations.
FirstMonie is available to all mobile phone subscribers in Nigeria, regardless of their mobile network. It is one of the first interoperable cross-network mobile financial services in the world. It allows a consumer on one mobile network to send and receive money from a consumer on a different mobile network. The number one intended use of mobile money by consumers surveyed in Nigeria is sending money to a family member (86%).
Increased service provider diversification
Earlier this year, Celpay International, a specialized mobile financial service provider, launched services in Uganda and Zimbabwe, powered by Fundamo. Celpay International provides mobile financial services to consumers and corporate customers. In Uganda, Celpay has partnered with mobile network operator Uganda Telecom, and in Zimbabwe it is working in partnership with several banks.
"The launch of services by Celpay International and First Bank Nigeria highlights the growing number of service providers competing to meet consumer demand in Africa," said van Rensburg. "A great deal of credit must go to governments across Africa which are driving the principles of financial inclusion and creating regulatory environments in which services like these can flourish as part of grander ‘cashless society’ plans. We expect to see a host of exciting government schemes gain ground in the next year."
The network effect
"Start small, think big, scale quickly has always been our advice to service providers. Within 18 months of service launch, consumers understand mobile money is easy to use and secure – they trust it and start to use more sophisticated services", said van Rensburg. "The next step to drive growth is breaking down the walls between services and countries to foster a rich ecosystem that connect consumers in Africa to each other and the global economy."
Fundamo executives are available at AfricaCom to discuss this news. Please contact Lana Pike to arrange a meeting: +27 (83) 459-2420, firstname.lastname@example.org.
Note to editors:
About Fundamo, a Visa company
About Visa Inc.