FNB storming the telecoms castle
While established operators MTN Group and Vodacom, who between them dominate the mobile space, look to Africa to expand their mobile money payment solutions, banking group FNB isn’t so much as making waves as it is ‘small tsunamis’ with an offering of its own.
Earlier this month (3 April 2012), the group reported that more than one million FNB eWallets have been created – with more than R1.6 billion paid into them since 2009.
The FNB eWallet allows people to send money to anyone in South Africa with a valid cellphone number. Funds are transferred instantly and the recipient receives an SMS indicating that funds have been sent to their cellphone.
Recipients are able to withdraw cash at FNB ATMs, buy pre-paid airtime or electricity, send money to another cellphone, purchase and/or get cash at selected retailers as well as make once off payments.
“We have seen year-on-year eWallet growth of 143% since January 2011,” said FNB’s CEO of eWallet Solutions, Yolande van Wyk.
“Average daily Send values are in excess of R3 million – double the figures we saw a year ago. We believe the growth of eWallet illustrates the important role it plays in providing access to financial services.”
So how does that compare against similar offerings from Vodacom and MTN? In 2010, Vodacom teamed up with Nedbank to launch M-Pesa, a service which enables people, including the unbanked, to transfer money from person to person using their mobile phones.
By mid 2011, Vodacom had signed up 140,000 registered users. The group added that the next likely update would be at its annual results announcement on May 21, 2012.
M-Pesa (M for mobile, pesa is Swahili for money) originated in Kenya as a product for Vodafone affiliate, Safaricom. As of November 2011, M-Pesa boasted over 14 million subscribers.
M-Pesa in Tanzania has nine million subscribers, a service offered by Vodacom Tanzania.
And as of December 31, 2011, MTN’s mobile transfer service, MTN Mobile Money had more than six million registered subscribers.
“The service is now available in 12 markets, including Ghana, Ivory Coast, Benin, Guinea-Bissau, Cameroon, Uganda, Rwanda and Swaziland. In keeping with our focus to offer customers products and services that add value to their lives, MTN Mobile Money customers in Uganda, Rwanda and Swaziland, for example, are now able to use the service to pay utility services and other bills such as school fees, DSTV and CanalPlus,” Christian de Faria, MTN Group chief commercial officer told BusinessTech.
“Also, in Uganda, MTN recently entered a partnership with Western Union that will allow MTN Mobile Money customers in that country to transfer and receive money from all over the world through their mobile money accounts. This year, the Western Union service on MTN Mobile Money will be launched in five other MTN markets,” de Faria added.
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