Growth opportunities for telcos
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By offering mobile money services, telcos are tapping into a rich new source of revenue. Today already, many telcos in African countries are generating more than 20% of their revenues, and an even greater share of their profits from mobile money.
TAPPING INTO THE EXISTING CUSTOMER BASE
The rollout of the service among existing mobile customers provides significant saving potential from the recharge of prepaid phone balances (i.e. airtime top-up) via mobile money. Today most recharges of phone balances are either done through so-called electronic voucher distribution at a point of sale or through the sale of scratch cards. Both types of recharges are typically done via third-party vendors, requiring commissions on every sale that can be as high as ~30% .
In the case of scratch cards, which is still the primary means of recharge, even more challenges exist. Cards must be procured, stored, and distributed to the relevant parties, which constitutes a significant logistical challenge. Faulty cards that need replacement and the system's vulnerability to fraud add further complexity.
Thus, converting customers from conventional recharge methods to mobile money produces substantial savings by cutting out intermediaries (and connected commissions), and eliminating the cost of scratch cards.
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5) goetzpartners project experience
6) goetzpartners project experience
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