MICROCAPITAL BRIEF: Blue Label Telecoms, MasterCard Partner to Provide Point-of-Sale Devices (POS) to Rural Shops in South Africa

Blue Label Telecoms Limited (Blue Label), a South Africa-based distributor of financial transaction services, and MasterCard, a US-based payments and technology company, are partnering to provide 22,000 small traders and rural shop owners in South Africa with point-of-sale (POS) devices that will allow businesses currently operating on a cash-only basis to accept card payments [2]. Blue Label set up POS terminals throughout South Africa, but the partnership with MasterCard will allow the distributor to reach more small- and medium-sized retailers and service providers.

MasterCard holders will be able to use their debit, check, or credit cards at these terminals to make payments, withdraw cash and purchase prepaid vouchers for airtime and electricity [1]. As part of the deal, Blue Label will upgrade 7,000 existing POS terminals using MasterCard software [1].

At the end of 2012, Blue Label held total assets of USD 437 million, return on assets (ROA) of 7.51 percent and return on equity of 13.26 percent. As of July 2013, MasterCard reported total assets of USD 12.5 billion and 1.2 billion payment cards in circulation worldwide.

By Megan McGowan, Research Associate

About Blue Label Telecoms (Blue Label): Blue Label Telecoms Limited (Blue Label) is a South Africa-based distributor of financial transaction services and prepaid electronic tokens in emerging markets. Blue Label sells insurance, cellphone minutes and prepaid electricity in South Africa and India. Blue Label processes approximately 300 million monthly transactions throughout the world. At the end of 2012, Blue Label held total assets of USD 437,000,000, return on assets (ROA) of 7.51 percent and return on equity of 13.26 percent.

About MasterCard: MasterCard is a global payments and technology company that is headquartered in New York, USA. It connects consumers, financial institutions, merchants, governments and businesses in approximately 210 countries and territories. MasterCard’s products facilitate commercial activities such as shopping, traveling, running a business and managing personal finances. As of July 2013, MasterCard reported total assets of USD 12.5 billion and 1.2 billion payment cards in circulation worldwide.

Sources and Additional Resources

[1] MasterCard Press Release: “MasterCard and Blue Label Telecoms Extend Electronic Payments to Small Businesses”, http://newsroom.mastercard.com/press-releases/mastercard-and-blue-label-telecoms-extend-electronic-payments-to-small-businesses/

[2] Tech Central: “Blue Label in Rural Payments Push”, http://www.techcentral.co.za/blue-label-in-rural-payments-push/43375/

[3] Bloomberg Business Week: “Blue Label Telecoms Ltd ?(Blu:Johannesburg Stock Exchange)”, http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=BLU:SJ&dataset=balanceSheet&period=A&currency=native

MicroCapital, September 4, 2013, “MICROCAPITAL BRIEF: MasterCard, South African Social Security Agency (SASSA) Distribute 10m Biometrically Secured Debit Cards to Social Grant Beneficiaries,” https://www.microcapital.org/microcapital-brief-mastercard-south-african-social-security-agency-sassa-distribute-10m-biometrically-secured-debit-cards-to-social-grant-beneficiaries/

MicroCapital, August 16, 2013 “MICROCAPITAL BRIEF: Western Union, eTranzact Launch Mobile Money Service in Nigeria” https://www.microcapital.org/microcapital-brief-western-union-etranzact-launch-mobile-money-service-in-nigeria/

MicroCapital, June 12, 2013, “MICROCAPITAL BRIEF: MasterCard Introduces “SME Online” Internet Payment Solution in Nigeria”, https://www.microcapital.org/microcapital-brief-mastercard-introduces-sme-online-internet-payment-solution-in-nigeria/

MicroCapital Universe Profile: MasterCard, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

 

 

Similar Posts: