Central Bank of Nigeria discusses challenges, mobile payments and connectivity ahead of Nigeria Com

Chairman
Licensed Mobile Payment Operators

This year NigeriaCom has developed the mobile money section of the conference, involving the critical players within the mobile payments ecosystem, the regulatory body and some of the pioneering banks. With the Central Bank of Nigeria participating the discussion about reaching the unbanked population is a session not to be missed. We discussed the mobile payments landscape and some of the challenges for a cashless society in Nigeria with Dare Owolabi, Chairman of the Association of Licensed Mobile Payment Operators (ALMPO)

Com World Series: How is your company positioned in Nigeria and what are its future objectives? 

Dare Owolabi: Mobile Money Operators in Nigeria is positioned and believed that mobile money is sustainable and are taking a scalable approach to provide convenient and affordable financial services to the unbanked. Mobile Money for the Unbanked (MMU) works with mobile operators and their future objectives are to provide a financial industry that accelerates the availability of affordable financial services that provide safety, security and convenience to the unbanked.

Com World Series:  What do you think are the top 3 major trends that are affecting your business in the region in 2013?

Dare Owolabi: The 3 major trends that are affecting mobile money business in the past years are:

• Level of illiteracy among subscribers: Mobile money operators have not sufficiently educated their customers on the use of mobile money.

• Financial Institution Regulators:  Articulation of policies that will improve the financial inclusion is still a far play

• High cost of USSD: transaction cost is high

Com World Series:  What are the remaining challenges in terms of connectivity and quality of services in the region and which technologies are most likely to resolve these issues?  

Dare Owolabi: Network connectivity is a major issue:  there are lots of interruptions due to unstable broadband. This makes subscribers to lose confidence in operation of mobile money. The technology that will resolve these issues is to transform telecommunication industry.

Com World Series: How are smartphones/tablets and cloud services impacting mobile/internet service providers in Nigeria?

Dare Owolabi: Most Nigeria use smartphones and tablets and this have increased the infiltration and usage of internet. It is left for the operators to continue to invest and improve data consumptions in order to buy subscribers credibility.

Com World Series: In your opinion, which companies are spearheading innovation in the region and what can be learnt from them?

Dare Owolabi: In our opinion all mobile money operators are trying their best to drive the industry and make sure it succeeds.
Dare and the Central Bank of Nigeria plus other distinguished speakers will be sharing views on Day One, 16 September at 15:40 on the panel: The mobile money advantage and reaching the unbanked

Shiny, digital, mobile money - Numeris-Media

Anne Agbakoba, Chief Research Officer
Numeris Media

May 2014 / Growing up, I often scratched my head over the concept of a money order: how did my father, who was away at Onitsha for a couple of days, manage to get money across to my mom in Lagos, which she would receive either at a post office or at a particular branch of Union Bank.

It was pure mystery. Mention this to today’s ‘natives’ (connected youth) – for whom money transfers involve a quick swipe of their smartphone – and they would laugh endlessly.

But, fast-forward to 2014, and with the growth of personal mobile phone ownership (table below), Africa has become the global leader in delivering financial services to the world's unbanked masses.

Across Africa, new ventures are using mobile money as a platform to facilitate other services like insurance, analytics, consumer credit, and eCommerce. The continent’s mobile network operators are boosting their bottom lines and raising standards of living by offering mobile wallets to the unbanked, making it possible to conduct a variety of transactions: from person-to-person money transfers to bill payments and point-of-sale purchases.

Convenience

When in Nairobi (Kenya), I would get cash out of my Ecobank bank account, hand it over to an ‘M-Pesa’ mobile money agent, present an ID, type in a PIN, and the agent would credit my phone number with an equivalent amount of digital currency.

Similar to the ‘Paga’ mobile money service in Nigeria, I could store my mobile money and then, for a small fee, send it to any other phone number on my network – whether to a friend or a taxi, or to purchase airtime.

Disruptive idea: a bakery deploys mobile money?

However, despite the fact that mobile money seems all smooth, shiny and digital, the problem the global poor have had with traditional banks is their grossly inadequate bank branch network i.e a mobile money service can only thrive if there is a generous number of outlets where people can draw or deposit cash. A larger spread of locations results in the service being more accessible.

Now, here is how a BAKERY in Mexico took care of business.

Grupo Bimbo, one of the largest baking (yes, baking, not BANKING) companies in the world, got the bright idea that all the

700,000 family shops and small merchants that buy its baked goods might as well become retail locations for mobile money and payments services.

And so, using technology from Blue Label (a leading South African provider of prepaid airtime), Grupo Bimbo began installing mobile payment terminals in its merchants’ shops. The new machines enabled the small retailers offer mobile airtime top-up and bill payment services. And a partnership between Grupo Bimbo and Visa also allowed the retailers offer cashless debit and credit card transactions.

From September 2013, specially trained technicians could be seen across Mexico, literally arriving on bread trucks to set up machines and train shop owners.

CONCLUSION

It definitely looks like mobile money services are well on their way to replacing cash transactions and enabling the spread of micro transactions across Africa and other developing economies. Millions of people would be able to store, send and spend money at low transaction costs using their mobiles. And the need for financial inclusion, the slow growth of rural banking, and the increased use of remittances, will offer a big opportunity for mobile money growth.

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Guest blog post by Anne Agbakoba, Chief Research Officer, NUMERIS-MEDIA anne@numeris-media.com

Simbarashe Mabasha discusses how mobile money services will evolve and more ahead of this year's VAS Africa

Simbarashe Mabasha, CEO, Wabona

Ahead of VAS Africa 2014 we are in conversation with Simbarashe Mabasha, CEO, Wabona

Com World Series: Please describe your company’s position and objectives in Africa

Simbarashe Mabasha: I am the CEO of Wabona and our objectives are to provide an innovative, affordable and unique Video-on-Demand service for Africans via mobile and online.

Com World Series: What do you think are the top 3 major trends affecting your business in the region in 2014?

Simbarashe Mabasha: Data costs, Medium specific content, Somewhat slow smartphone growth

Com World Series: Which do you consider to be the most popular services for African consumers and enterprises?

Simbarashe Mabasha: Music and general entertainment services for consumes. Data management services for enterprises.

Com World Series: What are the main challenges operators need to adapt to in order to deliver attractive services to their customers?

Simbarashe Mabasha: Data prices have to come down.

Com World Series: What is the best way forward for operators and OTT players – competition or partnership?

Simbarashe Mabasha: Partnership.

Com World Series: How are mobile money services likely to evolve in the years to come?

Simbarashe Mabasha: They will surpass conventional banking and credit card services.
Com World Series: How do you see mobile fitting into marketing and advertising campaigns?

Simbarashe Mabasha: Mobile is crucial to growth of the market and Ad-revenues for operators and OTT players as a whole.

Com World Series: Which companies are showing most innovation in the region and what can be learnt from them?

Simbarashe Mabasha: Zuku is offers a Triple-Play approach by providing a PayTV, voice and data solution for consumers. This combination of DTH and OTT is a step in the right direction.

See Simbarashe Mabasha talk on Day 1 of VAS Africa (24th June at 15:10)

Anthony Masunga discusses popular services, main operator challenges and money services, ahead of VAS Africa this June

Anthony Masunga, COO

Botswana Telecom

VAS Africa speaks with Anthony Masunga ahead of VAS Africa this June

VAS Africa: Please describe your company’s position and objectives in Africa

Anthony Masunga: My company (Botswana Telecommunications Corporation including beMOBILE) is evolving from single lines of business (Mobile, Fixed, Internet) into a converged operator. These changes were introduced in 2013 through organisational restructuring and will be supported by massive investment in technology to support the strategy of fixed mobile convergence. In addition to that, changes at shareholding level will involve partial privatisation of the whole company which would see the Government of Botswana listing 49% of the shares in the local Botswana Stock Exchange.

VAS Africa:  What do you think are the top 3 major trends affecting your business in the region in 2014?

Anthony Masunga: Consumer Demand: Access to Affordable, high quality internet

Capex for Fixed Access Network: Investment in the access network to improve wireline broadband connectivity vs returns

Capex for High Speed Mobile broadband (LTE and 3G): Investments in the mobile networks to improve mobile broadband experience vs. returns

VAS Africa:  Which do you consider to be the most popular services for African consumers and enterprises?

Anthony Masunga: Mobile money transfer for the consumers

VAS Africa: What are the main challenges operators need to adapt to in order to deliver attractive services to their customers?

Anthony Masunga: Truly identifying the needs of the customers (African markets differ from country to country and no single solution is fit-for-all markets)

VAS Africa:  What is the best way forward for operators and OTT players – competition or partnership?

Anthony Masunga: Partnership (Lowers opex for operators and improves time-to-market).

VAS Africa:  How are mobile money services likely to evolve in the years to come?

Anthony Masunga: More public utility companies will embrace the technology and it will be used for purchase of water, power, TV subscription and social payments.

VAS Africa:  How do you see mobile fitting into marketing and advertising campaigns?

Anthony Masunga: It will just be a cheaper and more direct form of marketing and advertising campaigns provided issues of SPAM are addressed

VAS Africa: Which companies are showing most innovation in the region and what can be learnt from them?

Anthony Masunga: First National Bank in partnership with different Mobile Networks for money transfer and payment services (e-wallet, m-wallet and payments)

See Anthony Masunga speak on the 24th June at 12:40! 

Friday News Round Up...

The Com World Series team live and breathe emerging markets, so we want to make sure we spread the news!

Hot Stories in Emerging Markets

MVNOs in KSA soon..but why limiting the market to 3 MVNO licences only? http://lnkd.in/8PuENi

Turkcell combines m-wallet and location services - http://telecoms.com – telecoms industry news, analysis and opinion
http://www.telecoms.com/42539/turkcell-combines-m-wallet-and-location-services/

Kenya sees increase in data usage
http://www.itnewsafrica.com/2012/04/kenya-sees-increase-in-data-usage

Kuwait eyes law to regulate social media sites
http://www.arabianbusiness.com/kuwait-eyes-law-regulate-social-media-sites-455194.html?utm_medium=twitter&utm_source=twitterfeed

Webinar

Bringing Value to the Mobile: The Path Ahead for Mobile Money and Mobile Financial Services
http://webinars.telecoms.com/webinar/bringing-value-to-the-mobile/?token=MPU

The Com World Series team concentrates on emerging markets in Africa, the Middle East and Eurasia 24/7 – 365 days of the year. You can follow the news with us by joining our online communities.

Mobile subscriptions in West & Central Africa predicted to increase 68% over next 5 years to reach 310m+

The West and Central Africa region has consistently been the fastest-growing in Africa in the past few years. Mobile subscriptions in West & Central Africa are predicted to increase another 68% over the next 5 years to reach in excess of 310m.  Over this period, the strongest subscriber growth is expected in the telecom markets of DRC, Benin, Cote d’Ivoire and Togo.   Competition for these new customers is fierce though, as operators compete with new entrants in a more crowded environment.

Unlike East Africa, where competition has been fought mainly on price, West & Central African operators in the region’s more developed markets have harnessed improved connectivity as a way of increasing customers.  They have invested in their networks to offer value added services such as mobile money transfer, which are regarded as a customer retention tool and way to increase rural coverage.  Data services, in particular mobile broadband is now offered in 7 of the region’s 24 markets.

Despite these clear developments, it’s still early days in the provision of these new services in West & Central Africa, and the companies which will succeed in seizing the best opportunities will have to move fast and be innovative. 

This June, 700+ telcos from across the region will meet at West & Central Africa Com conference and exhibition to discuss how to seize these opportunities.  Find out more at www.comworldseries.com/wcafrica