MICROCAPITAL BRIEF: Mobile Telecommunications Network (MTN) Ghana Launches “ATM Cash Out” Service to Mobile Money Subscribers

The Ghanaian arm of Mobile Telecommunications Network (MTN) Group Limited, a telecommunications service provider based in South Africa, has launched its “Automatic Teller Machine (ATM) Cash Out” service in Ghana, allowing subscribers of MTN Mobile Money, an electronic wallet service offered by MTN, to withdraw money from ATMs without a card. MTN’s “ATM Cash Out” service is available at all ATMs of Fidelity Bank, a Ghanaian commercial bank. Further details of the new program are unspecified.

Airtel Ghana, a subsidiary of Indian multinational telecommunication service company Bharti Airtel Limited, recently also partnered with Fidelity Bank Ghana to launch cardless ATM withdrawals through its mobile money service, Airtel Money. Other unspecified partner banks in Ghana reportedly are expected to offer this service in the future.

To withdraw money from an ATM using the Airtel Ghana platform, the customer uses his or her phone to enter the amount he or she wishes to withdraw, the ATM location and his or her four-digit personal identification number (PIN). After this process is complete, the customer will receive a short message service (SMS) text message with a six-digit withdrawal authorization code. The customer then enters the authorization code into the ATM to receive his or her cash.

MTN Group operates mobile money in 14 countries with approximately 10 million customers. As of year-end 2012, MTN had revenues of USD 13.1 billion and total assets of USD 17.7 billion. Return on assets (ROA) for 2012 was 0.11 percent and its return on equity (ROE) was 0.22 percent.

By Adrija Vaiciulionis, Research Associate

About Mobile Telecommunications Network (MTN) Group Limited:
Mobile Telecommunications Network (MTN), a multinational telecommunications group, was incorporated in South Africa in 1994. MTN offers voice and data communication services to individuals and businesses. As of year-end 2012, as reported by Bloomberg Businessweek, a US-based privately held financial software, data and media company, MTN had revenues of ZAR 135 billion (USD 13.1 billion) and total assets of ZAR 181 billion (USD 17.7 billion). Return on assets (ROA) for 2012 was 0.11 percent and its return on equity (ROE) was 0.22 percent.

About Fidelity Bank Ghana:
Fidelity Bank is a commercial bank in Ghana that is licensed by the Bank of Ghana, the nation’s central banking authority. It serves 400,000 customers. As of 2012, Fidelity Bank reported total assets of USD 629,000 and return on equity (ROE) of 31 percent.

About Bharti Airtel:
Founded in 1995, Bharti Airtel (Airtel) is an Indian telecommunications company. Airtel operates Airtel Money, where users can transfer money, pay bills and perform financial transactions directly from their mobile phones. As of August 2012, Airtel’s total assets were at USD 636 billion. Airtel has approximately 261 million subscribers across 150 countries.

Sources and Additional Resources:

“Airtel Money launch Cardless ATM Service on Fidelity Bank Ghana,” Mobile Money Africa, August, 15 2013, http://mobilemoneyafrica.com/details.php?post_id=1380

Cutcher, Richard “MTN Ghana Takes Mobile Money to ATMs,” Humanipo.comAugust, 15 2013, http://www.humanipo.com/news/29759/mtn-ghana-takes-mobile-money-to-atms/

“MTN Ghana Takes Mobile Money to the Doorsteps of Subscribers,” MTN Ghana, July, 6 2010, http://www.mtn.com.gh/NewsDetails.aspx?pageid=424

MicroCapital article, April, 1 2013, “MICROCAPITAL BRIEF: MTN Mobile Money, Mobile Financial Services (MFS) Partner to Launch KwikAdvance Payday Loans in Ghana,” https://www.microcapital.org/microcapital-brief-mtn-mobile-money-mobile-financial-services-mfs-partner-to-launch-kwikadvance-payday-loans-in-ghana/

MicroCapital article, February, 18 2013, “MICROCAPITAL BRIEF: Airtel Mobile Money Service Expands to Post Offices in Madagascar,” https://www.microcapital.org/microcapital-brief-airtel-mobile-money-service-expands-to-post-offices-in-madagascar/

MicroCapital Universe Profile: Bharti Airtel
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bharti+Airtel

MicroCapital Universe Profile: Fidelity Bank Public Limited Company
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fidelity+Bank+Public+Limited+Company

MicroCapital Universe Profile: Mobile Telecommunications Network (MTN)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mobile+Telecommunications+Network+%28MTN%29

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