MTN has introduced a virtual airtime top-up solution that allows the sale of airtime to prepaid customers from a cellphone, anytime, anywhere.
Called M-charge, any MTN subscriber can register with an MTN distributor to be listed as a vendor and can then sell airtime to other subscribers using a standard mobile phone. The distributor gets 11% of the sale and the individual vendors negotiate their share of this revenue with the distributor.
The new model will not "cannibalise" its current distribution streams, says MTN, as it will not be available in traditional distribution points. It is mainly aimed at rural people who have to travel distances to buy airtime.
The product also introduces a smaller denomination value of R10, lowering the threshold for people who have handsets but little money to purchase airtime.
The model was first tested in Nigeria, where over 150 000 of these transactions now take place per day, says MTN. In SA, there are already 20 pilot distributors around the country. MTN estimates that this model could create 9 000 jobs for every 500 000 prepaid users.
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