Mobile money to add 10% to MTC revenue
Mobile telecommunications giant MTC estimates that its mobile money services launched this week in partnership with MobiPay will contribute around 10% to revenue in the next five years as the service does not form part of its core business
MTC revenue for the 2012 financial year increased 11% to N$1.6 billion mainly attributed to the introduction of the 38cents call tariffs and increased data sales.
On Wednesday MTC MD Miguel Geraldes told the Economist that the mobile payment solution service, called MTC Money will be used mainly as a tool to reward loyal customers by offering an array of convenient mobile payment services.
Geraldes said: “Our main aim is not to generate a significant revenue stream from it, but to reward loyalty and to bring us closer to our customers. Revenue from this service will not represent more than 10% of our total revenue. Basically our aim is to increase the connection that we are having with our customers. I would say from a customer perspective, the service will be much more convenient and beneficial than to MTC.” He said Wednesday’s launch was a culmination of almost two years of negotiations with payment solutions enterprise MobiPay.
Geraldes said MTC will bring its strong brand and customer base into the 50/50 partnership as well as provide marketing for the service while MobiPay will be responsible for all the commercial aspects of the business including the applications as well as manning the call centre. MTC Money allows customers to use cellphone technology to transfer, withdraw and deposit money, buy airtime, electricity, pay bills and make point of sale payments at any MTC Mobile Home, MobiPay outlets, agents and merchants countrywide. The service went live on Thursday. It is available on all types of mobile phones, and can be used to transfer money to any MTC number or subscribers from other networks using a mobile phone.
Tim Ekandjo, MTC Chief Human Capital and Corporate Affairs Officer said with more than two million subscribers, it is clear that mobile platforms have become an essential element of consumers’ lives.
“When MTC looks at a mobile phone, we see more than just a device to make calls or send text messages. We see a new tool in the hands of a globally mobile workforce and an interacted connection to family and friends,” Ekandjo said. He added that part of the MTC business strategy is to offer customers multi-products, multi-platform convenience and choice. “MTC Money capabilities provide customers with an option to send and receive funds, do payments where and when they want, where MTC has network coverage,”Ekandjo said.