mobile money transfers Archives - AfricaBusiness.com

11Jun

By Africa BusinessNo Comments

Fintech

Investment bank predicts Africa’s remittance market will reach $500bn by 2025

Increased competition, stakeholder collaboration and investment in financial infrastructure can all contribute to lower global remittance fees, says Risana Zitha, Managing Director and Head of Africa at DAI Magister Remittances comprise a significant portion of African Gross Domestic Product (GDP), with the total value of remittances across the continent reaching nearly $100 billion in 2022 − $20 billion of which was intra-African flows. Despite the importance of remittances to the African economy, the cost of sending money to the continent remains very high. The UN Sustainable Development Goals state that remittance fees should be less than 3% by 2030, but data from the World Bank suggests that at present the global average is twice this target, with the figure as high as 20% in some pa...

Affordable digital banking to revolutionise price-sensitive East African payments market

21Apr

By Africa BusinessNo Comments

Fintech, Kenya News

Affordable digital banking to revolutionise price-sensitive East African payments market

In a region still dominated by cash and mobile money options, like M-Pesa, new collaborations between fintechs are looking to capture the price-sensitive market with innovative, open-loop digital payment solutions in East Africa. According to Mark Dankworth, President International, Ukheshe Technologies, the region is poised for a surge in digital banking growth, with the likes of MCQR and virtual cards likely to make the biggest impact. This follows the Kenyan retail-tech startup, Tanda, leveraging Ukheshe Technologies’ cutting-edge Eclipse API to increase their digital banking offering in Kenya and East Africa to include QR payments, digital wallets and the issuing of physical and virtual cards. The move will empower Tanda agents and merchants throughout East Africa to implement 100,000 ...

1Apr

By Africa BusinessNo Comments

Fintech

Airtel Africa’s Mobile Money Business Gains $100m Investment from Mastercard

Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today announces the signing of an agreement under which Mastercard, a leading innovator and global technology company in the payments industry, will invest $100m in Airtel Mobile Commerce BV (“AMC BV”), a wholly owned subsidiary of Airtel Africa plc (the “Transaction”). AMC BV is currently the holding company for several of Airtel Africa’s mobile money operations and is intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries. The Transaction values Airtel Africa’s mobile money business at $2.65bn on a cash and debt free basis. Mastercard will hold a minority stake in AMC BV upon completion of the Transac...

29Mar

By Africa BusinessNo Comments

Fintech

Mobile Money Accounts Grow to 1.2 Billion in 2020

GSMA has published last week its annual 'State of the Industry Report on Mobile Money'. It reveals a dramatic acceleration in mobile transactions during the COVID-19 pandemic as lockdown restrictions limited access to cash and financial institutions. The report found that the number of registered accounts grew by 13 per cent globally in 2020 to more than 1.2 billion – double the forecast. The fastest growth was in markets where governments provided significant pandemic relief to their citizens. Providing more opportunities in the formal economy To minimise the economic toll of COVID-19, many national governments distributed monetary support to individuals and businesses. The value of government-to-person payments quadrupled during the pandemic, with the mobile money industry working han...

22Mar

By Africa BusinessNo Comments

Fintech

The Rise Fund to invest $200 million in Airtel Africa’s mobile money business, at $2.65 billion valuation

Airtel Africa to explore potential listing of mobile money business within four years. Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, announced on 18th March the signing of an agreement under which The Rise Fund, the global impact investing platform of leading alternative investment firm TPG, will invest $200 million in Airtel Mobile Commerce BV (“AMC BV”), a wholly-owned subsidiary of Airtel Africa plc (the “Transaction”). AMC BV is currently the holding company for several of Airtel Africa’s mobile money operations; and is now intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries. The Transaction values Airtel Africa’s mobile money business at $...