MICROCAPITAL BRIEF: Etisalat Lanka of Sri Lanka, Dialog Axiata of UAE Partner to Extend Ezcash Mobile Payment System in Sri Lanka

Dialog Axiata (DA), a Sri Lankan mobile communications subsidiary of Malaysia’s Axiata Group Berhad, reportedly has announced that it will begin a partnership with Etisalat Lanka (EL), a cellular network owned by the Emirates Telecommunications Corporation of the United Arab Emirates, to extend Dialog’s “eZcash” mobile payments to EL’s customers in Sri Lanka. EZcash is a mobile cash transfer service that enables subscribers to load money onto an account on their mobile phones without the need for a bank account. This account balance can then be used to send money to other users, pay bills and purchase products. In 2013, customers effected transactions worth a total of LKR 6 billion (USD 45.9 million) over eZcash, and monthly transactions have since reached LKR 700 million (USD 5.3 million), according to a statement attributed to Fariq Cader, head of mobile money and payments systems at Dialog.

Dialog reported that its local coverage spans all provinces of Sri Lanka, with international roaming services also provided across 200 countries as of April 2013. EL began operations in Sri Lanka in 2010 after acquiring 100-percent stake of the local arm of Tigo from Millicom International Cellular. With corporate offices in Luxembourg and Sweden, Millicom reports 50 million customers in 13 countries in Africa and Asia. EL reported 167 million subscribers across 16 countries as of 2013.

By Juan Blanco, Research Associate

About Dialog Axiata (DA)

Dialog Axiata, an ISO 9001-certified company based in Colombo, Sri Lanka, is a subsidiary of Malaysia-based Axiata Group Berhad. Its coverage spans all provinces of Sri Lanka, with international roaming services also provided across 200 countries. It reported total assets of USD 713 million and 8.7 million customers as of 2012. Axiata Group Berhad reported 200 million customers in 10 different countries in Asia.

About Etisat Lanka (EL)

The UAE-based mobile network operator Etisalat began its operations in Sri Lanka on February 25, 2010, after acquiring a 100-percent of the local arm of Tigo, a subsidiary of Europe-based Millicom International Cellular. The company was previously known as “Celltell,” which inaugurated its operations in 1989 and changed its brand name to “Tigo” in 2007. Etisalat is fully owned and operated by the Emirates Telecommunication Corporation of the United Arab Emirates. It serves 167 million subscribers in 16 countries in the Middle East and Asia.

Sources and Additional Resources

[1] Lanka Business Online, “Mobile money boosted in Sri Lanka with pioneer partnership,” March, 2014, http://www.lankabusinessonline.com/news/mobile-money-gains-traction-in-sri-lanka/887557331

MicroCapital Story, March 28, 2014, “Western Union, Paga to Augment Mobile Money Transfer Services in Nigeria,” https://www.microcapital.org/microcapital-brief-western-union-paga-to-augment-mobile-money-transfer-services-in-nigeria/

MicroCapital Story, March 20, 2014, “MoneyGram, Vodafone Partner to Enable Global Mobile Money Transfers Via M-Pesa,” https://www.microcapital.org/microcapital-brief-moneygram-vodafone-partner-to-enable-global-mobile-money-transfers-via-m-pesa/

MicroCapital Story, February 27, 2014, “Commercial Credit and Finance of Sri Lanka Raises $12m by Selling 25% Equity Stake to Creation Investments,” https://www.microcapital.org/microcapital-brief-commercial-credit-and-finance-of-sri-lanka-raises-12m-by-selling-25-equity-stake-to-creation-investments/

MicroCapital Story, July 30, 2013, “Government of Sri Lanka Proposes Long-Delayed Regulations for Microfinance Institutions (MFIs),” https://www.microcapital.org/microcapital-brief-government-of-sri-lanka-proposes-regulations-for-microfinance-institutions-mfis/

MicroCapital Universe Profile: Dialog Axiata (DA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Dialog+Axiata

MicroCapital Universe Profile: Etisalat Lanka (EL), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Etisalat+Lanka+%28EL%29

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