TOLA
Overseas revenues – mobile for the masses
Shane Leahy, CEO of Tola Mobile, explains how offering alternative payment methods creates opportunities for companies to increase revenues in Africa.
T
he growth of mobile-payment systems in Africa is skyrocketing at an astounding rate. In 2002, only 3% of people in the entire continent had mobile phones; by 2010, that had increased to 48%. The
GSMA’s latest ‘Mobile Economy’ report highlights that at the end of 2016, 65% of the world’s population had a mobile subscription, with this total set to reach five billion by mid-2017. By 2020, it is anticipated that almost 860 million new subscribers will be added, taking the global penetration rate to 73%.
cards, or even a checking or savings account. The incremental growth in mobile phone take-
up has been less about the technology and more about meeting the needs of its users, who often are without hard currency – 66% of Africa’s continents inhabitants do not have access to a formal bank account.
Gaining Traction
This new ability to create financial interactions with an unbanked population brings great opportunity for businesses operating outside Africa to extend their customer base. Africa is of particular interest, with mobile gaming gaining real traction in this region, notably in Uganda, Rwanda, Kenya and Nigeria are experiencing a massive outbreak of online betting. The mobile wallet market is growing, from $18.7billion in 2014 to $260.3 billion in 2020. By offering alternative
payment methods, there is a real opportunity for gaming and gambling companies to increase revenues to untapped
In developing countries, such as Africa, we know that 2.5 billion people are unbanked. However, over 1 billion of these people have access to a mobile phone. M-Pesa is the leading mobile money service, allowing customers to securely send, receive and store money via a mobile phone. These are not smartphones; these phones have no bells, whistles, or apps. What they do offer their owners is access to goods and services without the need for cash, credit
70 MAY 2017
customer segments in Africa. However, many operators still have concerns around fraud protection and ease of implementation.
Secure transition
Clearly, payment providers have a major role to play in enabling the secure transition into this market. First and foremost, merchants and businesses must be ready to offer a payment mechanism that does not hinge on the end user having a bank account, ruling
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