Online revolution is the antithesis of society’s public dealing challenges. Earlier, we had to wait in long queues for the most mundane tasks be it money transfer, any bill payments, Mobile top ups, ticket bookings and many others. The new era of online revolution has provided lots of facility in your hand and with most of the things just a click away. Now, you can perform most of above mentioned mundane tasks just by using a mobile device.
According to forecasts by Informa Telecoms & Media (IT&M), the numbers of mobile subscriptions in the African continent are going to cross 1 billion by end of 2015. IT&M report states that Africa has the highest rate of growth in mobile subscriptions amongst major world regions and is forecasted to increase by 17.5% year-on-year. This growth rate is higher than world average of 10.75% for the same period.
The lack of access to formal banking in the mass market in Africa has opened door for mobile operators to build successful mobile payment services. The gap between banking penetration and mobile penetration means that while many people do not have access to financial services, they do have a mobile phone. Capitalizing on the phenomenal growth of mobile telecommunications in Africa, a number of service providers are already active in deploying mobile banking services to tap the demand from largely unbanked population.
According to data from the GSM Association, some 130 mobile money deployments had been implemented by end of March 2012, spanning all developing regions. Interestingly; Africa is leading the trend with 60 such systems and within Africa, the East African Community (EAC) is at the Forefront. Nigeria, which surpassed the 100 million mobile subscriptions milestone during Q2 2012, will continue to be Africa’s biggest mobile market and is projected to have 168.99 million subscriptions at the end of 2017. It is followed by Egypt, which is estimated to sport 129.4 million subscriptions by the same timeframe.
AFRICA- A GROWING MARKET FOR TELECOMMUNICATIONS
Africa offers big opportunities to businesses, especially in telecommunication. If you just look at Nigeria, it has a population close to 200 million. Belgium’s population is just a fraction of that, yet it has 5 to 6 mobile operators. If you dare to explore new markets in Africa and have the patience to understand the African business mentality, it’s one of the most exciting parts of the world to do business.
CHALLENGES WHILE ESTABLISHING BUSINESS IN AFRICA
Doing business in Africa requires long term investment but it’s a fact that once you able to established business relationship and acquired customers they are loyal towards you. African customers like personal relationship unlike the developed markets which are more attuned otherwise. The regulatory environment is another challenge in Africa.
In Europe, where there is blanket licensing from the European Commission to make life easy for European industries. Fortunately, many countries in Africa are trying to implement rules following the European model. Inspite of this, for every third of African countries, regulation is still a grey area. For example: Certain jurisdictions still don’t like the financial information traveling outside the country. Now if you don’t know about this challenge and move towards advance stage in your project it can block your access to the commercial market.
Is MOBILE MONEY dominating the payment system in Africa?
There is an overall need for banking sector in Africa to reach a large unbanked population. During past 2-3 years, there has been a dramatic upward trend in Mobile Money Subscription base, but market penetration is still low. I have observed, money transfer company are still spreading like bush fire as we meet people in hoards during various events and seminars who are still planning to enter in this business.
Currently, mobile money is receiving a big chunk of media coverage in Africa and internationally. New mobile money services are getting launched in the market almost every month. It is touted to be Africa’s major form of financial transaction and is positioned as part and parcel of the African life. Even with the current boom on Mobile Money Subscriptions in Africa, there is still vast room for expansion as the market is barely covered and markets such as Kenya, Nigeria, Tanzania, Ghana, Uganda and Tunisia look extremely promising.
PAYKONNECT
“Serve Mobile Money to Africa’s banked and the unbanked”
PAYKONNECT is designed to allow end users conduct financial transactions anywhere, anytime. The service is aimed at bridging the gap between the banked and the unbanked. PAYKONNECT platform provides services which are secure, convenient, cost effective and available for everyone. The Platform is already integrated with hundreds of third party product offering;
OUR CREDIENTIAL
Paykonnect Solution is a scalable platform that has been tested extensively in India. It is operational in India and runs services under the name “PAYWORLD” (the largest electronic distributor providing commercial services through more than 60,000 retail touch points doing almost 10 million sales transactions in a month).
Paykonnect platform has already been implemented internationally in KENYA, NIGERIA, ZIMBABWE, Sri Lanka and UK and looking to expand to newer geographies of Africa, Latin America and Asia.
Computer • POS terminal • Mobile Phone – GPRS active Java enabled / Android phone • Mobile Phone – SMS basedSolutions available on;
KEY BENEFITS
- New revenue streams for retailers from complimentary services
- Ease of retail chain management
- Best suited to businesses looking to offer a range of Online services
- Real time control on inventory
- Reduced logistics
Don’t hesitate to ask me when you have any questions, thanks.
Sourabh Goyal
VISIT US @ http://www.skilrock.com
WRITE US @ sourabh.goyal@skilrock.com
Skilrock Technologies 