As more telecoms providers (telcos) adapt their business models to include mobile money services, they need a trusted fintech partner. Telcos are extending their value-added services to new markets and breaking free from the restrictions of calling plans, data and airtime in order to seize new opportunities. Without having to develop their own financial infrastructure, telcos can integrate digital payments through B2B partnerships with fintech companies like 4C Group of Companies.
Over the past ten years, the telecoms sector in Africa has expanded rapidly. Telcos require reliable, secure and scalable fintech solutions to stay ahead of the competition and boost profits. 4C has already partnered with telcos across Africa to provide a mobile money solution with cutting-edge technological tools.
Mobile money solutions for telecoms providers
Current market trends point to significant growth in mobile money in Africa. Traditional banking services are difficult for those living in rural areas to access. Telcos have much greater access to markets than banks do, including customers in rural Africa. The use of mobile devices has increased dramatically, giving individuals and businesses considerably better access to telecommunications networks.
Innovative telcos are now focusing on financial services in addition to communication in an effort to serve Africa’s unbanked population. Millions of mobile phone users are benefitting from the growing popularity of mobile wallet solutions. Customers can circumvent complicated banking processes and avoid paying for expensive mobile data or internet connectivity when using mobile money. Through USSD codes, a technology similar to SMS or text messaging, mobile money opens doors for millions of Africans with just a cell phone.
4C’s financial technologies are designed for the African market and serve as a fintech partner for telcos throughout Africa. The 4C iNsight software provides various services and solutions for telcos. Revenue assurance and regulatory compliance are both ensured by this software. 4C’s Payment Gateway also makes it quick and easy to send and receive mobile money. Telcos can use their charging gateway to automatically calculate what merchant or agent fees should be deducted from users’ accounts.
Telcos increase their revenue by leveraging automation and data science to offer geo-targeted products and services to their large customer bases. Through a secure financial instrument, telcos can increase the scope of their services and expand business operations. By partnering with a fintech, telcos can focus on their core business operations and overall growth.
Fintech partnerships promote business growth for telcos
Mobile money facilitates financial inclusion in Africa. Customers can perform essential financial transactions on their mobile phones, such as person-to-person (P2P) transfers and utility bill payments. Telcos are adding loans, credits and insurances to their portfolio of digital finance to boost revenue.
4C’s fintech solution acts as a bridge between the telco, the user and the bank. Instant transactions are made possible by high-speed data processing. This technology provides telcos with data insights from customers. Telcos can also track spending patterns and other variables to learn more about their customers.
By having a customer-focused approach, telcos can promote repeat purchases and provide clients with exclusive offers depending on their spending habits. They can also determine which customers are likely to request a salary advance or microloan at the end of the month. User data can also be used to improve services, offering more value to customers.
Cashback, rewards and loyalty programmes promote customer loyalty. Building trust and brand reputation requires a robust fintech solution. Convenience and security are key components of a customer-centric approach to mobile money services.
Digital transactions in Africa
By 2026, it is anticipated that digital payments in Africa will amount to almost $225-billion. This is approximately double the current value of transactions and an indicator of the size of the mobile money market in Africa. Governments in Africa encouraged mobile payments as a means of preventing the Covid-19 virus from spreading further.
Over $55-billion in mobile transactions were made in Kenya in 2021 – an increase of 20% from 2020. In Kenya, around 85% of internet users said they made payments with mobile money in 2021.
By 2027, it is estimated that the mobile money market will be worth over $700-million. In the next two years, it is anticipated that Africa will have close to half a billion online shoppers. Telcos can reach Africa’s growing digitised population by offering mobile money services to their customers, however, this also necessitates partnering with an expert in the industry, like 4C Group of Companies.
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