Omnichannel Payment Systems, MFS Africa, Plans Entry in Nigeria – TechEconomy.ng
Despite progress in recent years, formal financial services remain out of reach for many people in Africa. And, even when these services become available, usage is low due to a range of factors, including transaction costs and security.
Mobile money and other forms of non-traditional financial services have been shown to be key enablers of financial inclusion in Africa – they have disrupted traditional financial services by providing better ways to transfer funds than use of cash.
Through mobile and digital payment systems, customers in Sub-Saharan Africa have access to business loans, savings, and other services that a traditional bank would otherwise provide.
The greater availability of financial services is having an incredible impact on many aspects of life in Africa and playing a role in reducing the poverty of communities.
MFS Africa is an omnichannel payment player helping to deliver the kind of impact the continent needs.
It is the largest omnichannel payments hub in Africa, connecting over 400 million mobile money users on the continent.
Reaching broadly the continent’s unbanked and underbanked populations, MFS Africa connects mobile network operators, money transfer organizations, cross-border remittance companies, financial service providers and merchants around the world to millions of mobile wallets on the continent.
“Our services are focused on creating more opportunities for Africans who need to make payments, transfer money and remit funds to others,” says Dare Okoudjou, Founder and CEO from MFS Africa. “Merchants, banks, mobile operators and mobile money transfer companies have come to rely on our compliant and cost-effective service, and that’s why the MFS Africa network has grown so much across the African continent.”
MFS Africa has achieved a significant presence in Sub-Saharan Africa, now being connected to over 60% of all mobile money wallets in the region. Understanding the need to connect mobile money to the rest of the world, MFS Africa recently expanded its core banking and fintech offering through the acquisition of US fintech GTP.
This will allow the company to tokenize the mobile money space and connect to traditional card scheme ecosystems such as VISA and Mastercard.
Okoudjou explains that “our guiding principle is that African consumers and businesses should be able to pay for anything, both offline and online. We’ve always known that to truly break down borders, we need to connect mobile money to the rest of the world; card networks seem to be the most effective way to achieve this.
The company works in more than 35 countries in Africa, but believes there are still other areas where it can provide its services.
It is in this context that MFS Africa has negotiated an additional financing agreement with Norsad Capital, an impact investor offering tailored debt solutions to mid-market growth companies in Sub-Saharan Africa.
Kenny Nwosu, CEO of Norsad Capital, said, “Norsad Capital’s term facility will help MFS Africa break into Nigeria, a market that is critical to MFS Africa’s growth strategy. With its vast population and ability to do business, Nigeria represents the largest movement of money on the continent, and our funding is important because it comes at a stage of business development where it is about to experience significant growth.
According to Nwosu, “This is a very attractive investment for Norsad as MFS Africa has a strong position in the market, and this market share positions MFS Africa to be at the forefront of financial inclusion and digital payments in Africa”.
There is also great synergy between the two service providers as MFS Africa is aligned with Norsad’s goal of building a better Africa. As Okoudjou of MFS Africa explains, “MFS aims to reduce the cost of sending remittances to Africa. We currently connect mobile money systems to each other and to money transfer organizations, banks and other financial institutions, enabling money transfers to and from mobile money accounts. Our entry into the Nigerian market will allow us to significantly expand our footprint on the African continent, bringing much-needed financial services to thousands more people.
In line with Norsad’s impact goals, MFS Africa is aligned with Norsad’s goal of building a better Africa. Mobile money has disrupted traditional financial services by providing a better way to transfer funds instead of cash. Thanks to mobile payments, customers in sub-Saharan Africa can access business loans, savings and other services just as they would at a bank. Mobile money is having an incredible impact on many aspects of life in Africa and playing a role in reducing poverty in communities.