The MTN Group has chosen mobile financial services provider Fundamo's Mobile Wallet solution to power its “MTN MobileMoney” service, which will be available to a subscriber base of over 80 million users across 21 countries in Africa and the Middle-East.
The deal, says Fundamo, is worth $9.7 million, and is the largest mobile banking software deal to have been announced. The company says this partnership will bring basic financial services to MTN mobile subscribers in largely unbanked populations of sub-Saharan Africa and Middle-East.
According to both companies, the deal is an extension of the existing relationship between MTN and Fundamo to expand MTN MobileMoney from SA into 20 additional countries.
Dare Okoudjou, head of MobileMoney international development for the MTN Group, says: “We selected Fundamo for two key reasons; because they could support the concurrent multi-country roll-out and aggressive time to market that we required for our project, and because their solution is mature, scalable and well tested in developing markets, as well as being designed from the ground up to be fully compliant with all banking regulations. With Fundamo's future-proof solution, we can take full advantage of the mobile payment market.”
MTN MobileMoney, notes Fundamo, is a SIM-based version of Fundamo's Mobile Wallet Solution version 3.1, specifically designed to meet the needs of MTN's subscriber base, using HSM technologies that offer ATM level security, and a PIN system that prevents sensitive information from residing on the handset, entirely safeguarding users against theft and fraud.
Aletha Ling, executive director at Fundamo, says the MTN MobileMoney solution doesn't require users to set up a bank account, instead offering a variety of services; from money transfer, mobile payments and balance checking to mobile purchases, and the ability to buy airtime in real-time.
According to Okoudjou, MTN MobileMoney is anticipated to be a key differentiator for MTN, supporting customer acquisition and retention, while strongly reinforcing the MTN brand in outlets throughout the country that accept MTN MobileMoney payments. Initial trials of the service in several markets are showing a satisfactory level of acceptance from both end-users and merchants, notes MTN.
“We're delighted to be extending our relationship with MTN. Mobile wallet capabilities have the capacity to change the face of Africa, unlocking basic financial services, improving lifestyles and stimulating wealth through increased commerce. We're proud to be a part of these changes,” says Ling.
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