MFS Africa is enabling millions of consumers to embrace mobile payments
A startup comprised of 30 people is helping accelerate the growth of mobile commerce in Africa. In 2009, MFS Africa began offering a new mobile payments platform, allowing consumers to use their mobile devices to complete transactions. The platform was embraced by some of the continent’s largest telecommunications companies, which account for more than 500 million consumers combined. With smartphone penetration on the rise throughout Africa, the demand for mobile payments services is growing quickly.
Remittance is being supported by mobile devices, allowing more consumers to send money back home more easily
According to the World Bank, remittances, money that foreign workers send home to their families, had increased in sub-Saharan Africa by 2.2%, reaching some $32.9 billion. Many consumers are beginning to use their mobile devices to send money back home, seeing these devices as more convenient than traditional remittance processes. MFC Africa has been enabling consumers to participate in mobile commerce of all kinds, which has also made the remittance process easier for consumers overall.
MFC Africa allows those with low-end mobile devices to participate in mobile commerce
While smartphone penetration is on the rise in many African countries, the majority of mobile consumers have conventional, low-end devices. MFS Africa has developed a platform that these consumers can use, ensuring the mobile commerce is not solely the domain of those with smartphones and other high-tech gadgets. The firm has allowed some 55 million people in 17 African countries to connect to one another. Approximately 15% of its users are considered active, making two or more mobile payments every month.
As mobile payments grow, consumers are being targeted by groups that want to exploit financial information
The growth of mobile payments may represent some promising economic opportunities for companies operating in Africa. As consumers become more mobile-centric, businesses are feeling the need to provide mobile services to these consumers. One of the issues these organizations will have to overcome, however, is security. As mobile payments continue to grow, security is likely to become a more problematic issue for consumers.
Apple has opted to take a relatively slow approach to the expansion of its mobile payments service. The company has shown interest in bringing the service to other countries, but it has opted to take its time in doing so. The slow approach may pay off in the long run, as consumers will become more comfortable with mobile payments when apple Pay becomes more available.