Visa Incorporated (Visa), a US-based payments technology company, has recently announced that it is offering under-banked consumers in developing countries prepaid, globally interoperable electronic payment accounts. The new product will enable users to send and receive international remittances, make online or in-person purchases and withdraw funds from automated teller machines (ATMs).
Visa will initially target the product at developing countries in Africa, Asia and Latin America. South Africa-based Mobile Telecommunications Network (MTN) Group will be the first to offer the new product to its mobile money customers, initially in Nigeria and Uganda.
Jim McCarthy, head of product for Visa, said “Reaching consumers who have previously lacked access to formal financial services with secure and reliable electronic payments is finally a reality…Mobile technology has become the single most important driver of financial inclusion that is enabling financial institutions, mobile network operators and Visa to connect unbanked consumers to each other and the global economy.”
In June 2011, Visa announced the acquisition of South African mobile finance platform provider Fundamo to advance its mobile financial services and payments capabilities.
As of December 31, 2010, MTN reports total assets of ZAR 154 billion (USD 22.5 billion), with approximately 141 million subscribers in 21 countries in Africa and the Middle East.
By Kristha Abores, Research Associate
About Visa:
Visa is a global payments technology company based in the United States. It partners with financial institutions to provide credit, debit and prepaid cards to consumers. It also offers payment programs and consulting services for commercial clients. As of June 30, 2011, Visa’s network included 1.9 million automated teller machines (ATMs) and 1.9 billion Visa cards. As of September 30, 2011, Visa reported total assets of USD 34.8 billion, net income of USD 3.65 billion and 15,500 financial institution customers in 200 countries and territories.
About Mobile Telecommunications Network Group (MTN):
Established in South Africa in 1994, Mobile Telecommunications Network Group (MTN) is a multinational telecommunications provider that provides cellular telephone service. MTN also operates MobileMoney, a banking platform that can be used on cellular devices. As of December 31, 2010, MTN reports total assets of ZAR 154 billion (USD 22.5 billion), with approximately 141 million subscribers in 21 countries in Africa and the Middle East.
Sources and Additional Resources:
[1] “Visa Introduces New Mobile Prepaid Product for Developing Countries,” http://corporate.visa.com/media-center/press-releases/press1157.jsp
“Visa Acquires Fundamo, Signs New Agreement With Monitise,” http://corporate.visa.com/media-center/press-releases/press1128.jsp
MicroCapital.org article, June 30, 2011, “MICROCAPITAL BRIEF: Mobile Finance Platform Fundamo, Bank Andara Aim to Extend Access to Financial Services to 40m in Indonesia,” https://www.microcapital.org/microcapital-brief-mobile-finance-platform-fundamo-bank-andara-aim-to-extend-access-to-financial-services-to-40m-in-indonesia/
MicroCapital.org article, September 7, 2011, “MICROCAPITAL BRIEF: Central Bank of Nigeria Issues Mobile Money Operating Licenses to Affiliate of Fortis Microfinance Bank, 10 Other Companies,” https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-issues-mobile-money-operating-licenses-to-affiliate-of-fortis-microfinance-bank-10-other-companies/
MicroCapital.org article, June 14, 2011, “MICROCAPITAL BRIEF: Central Bank of Nigeria’s (CBN’s) Cash Withdrawal Limit Expected to Impact Microfinance Institutions (MFIs),” https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria%E2%80%99s-cbn%E2%80%99s-cash-withdrawal-limit-expected-to-impact-microfinance-institutions-mfis/
MicroCapital.org article, May 30, 2011, “MICROCAPITAL BRIEF: Haiti Mobile Money Initiative, Managed by World Council of Credit Unions (WOCCU), Continues to Seek Recipients for $12m in Grants for Development of Mobile Payment Platforms from Gates Foundation, USAID,” https://www.microcapital.org/microcapital-brief-haiti-mobile-money-initiative-managed-by-world-council-of-credit-unions-woccu-continues-to-seek-recipients-for-12m-in-grants-for-development-of-mobile-payment-platforms-from-g/
MicroCapital Universe Profile: Visa, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Visa
MicroCapital Universe Profile: MTN, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mobile+Telecommunications+Network+%28MTN%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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