Mobile Operators

Mobile phone penetration has reached saturation point in many countries, with over five billion subscribers worldwide. The much-anticipated cannibalisation of revenues from voice is becoming a reality and operators are still searching for the "killer application". Mobile finance initiatives have come and gone over the past decade, meaning the next foray into payments will happen cautiously. With over 90% of many mobile markets consisting of prepaid phone customers, mobile operators already have experience and brands associated with prepaid solutions. This positions them as the natural, convenient and trusted solution providers for prepaid payment solutions.

Migrant workers frequently use their mobile phones to call home. Many also tend to send money home to friends and families, through expensive and inconvenient channels. The operator is ideally placed to bundle payment solutions with calling minutes to add significant value to this consumer segment. Operators are also attempting to grab a bigger market share by attracting the spouse and children of existing customers through focusing on more family oriented offerings. Family budgeting solutions from MFSL would serve to complement such offerings.

In addition to creating new revenue streams, financial solutions serve to strengthen the operator brand and as mobile centric solutions enter the market, the opportunity exists for operators to disrupt the financial services market and strengthen the position of the mobile phone in the financial services value chain.