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Mobile Money Wallets - Is It Time to Start Offering Them To Your Customers?

August 5, 2022

Mobile Network Operators (MNOs) currently find themselves in a bind. Their primary service - the service which has, up to this point, always defined their identity - of instant communication no longer has the value it once did.


Landline, mobile and broadband services have all been eclipsed by instant messaging services and social platforms powered by wireless connectivity.


And MNOs are feeling the sting in their pockets. By no longer being the gatekeepers of analogue and digital communication, operators are struggling to redefine themselves in a post-call landscape.


Customers who no longer require the same level of voice and text services from MNOs are disconnecting their accounts, fueling churn rates through the roof.


MNOs and telcos need to modernise their service offerings in line with customer expectations - even if it means shifting away from traditional communication services as a primary revenue stream.


The smartphone boom has propelled customer demand for access to services from their mobile devices. MNOs, as providers of both smartphones and broadband services, already have the network in place to offer mobile services via mobile money wallets.

Mobile Money Wallets Unpacked


According to Statista, over 2billion people purchased goods or services online in 2020,largely from their mobile devices. The recent events of 2020 changed everything, including how customers expect to access and purchase items.


There’s simply no going back to traditional in-store purchasing of prepaid and other services - it’s all gone entirely digital.


Customers want fast, instant access to the services and goods they want when they want them. Mobile Money Wallets allow them to do just this.


Mobile money wallets are digital wallets that are each linked to a unique mobile number. They act as virtual accounts for sending, receiving, storing and spending mobile money, all of which can be done instantly and without transmission through a bank.


Using mobile money wallets, customers can use mobile money to purchase items online, top up their airtime or data, buy electricity and other prepaid services and pay utility bills and subscriptions.


With mobile money wallets, customers can transact instantly, no matter where they are without having to withdraw cash or own a bank card.  

Is Offering Mobile Money Wallets The Right Strategy For Your Customers?


While offering financial services might initially sound out of MNOs’ area of expertise, they are actually uniquely positioned to capitalise on this service. Operators already have an established customer base with registered mobile numbers with an appetite for mobile financial services.


This extensive database, coupled with their vast service network, means that MNOs can roll out mobile money wallets as a service to their customers at a faster time to market compared to a fintech company that first has to build up an existing client base.


MNOs who offer mobile money wallets and liquidity for mobile money will not only profit from offering it as a service - they can also offer the full bouquet of digital services that come with mobile money wallets to customers.


Financial, eCommerce, utility, subscription, prepaid and entertainment services can all be rolled out and offered in tandem with mobile wallets. This will allow MNOs to bolster their revenue through additional airtime and data purchases, and through surcharges for any goods or services purchased through their platform.


Providing mobile money wallets and mobile financial services will help telcos and MNOs to retain their existing customers, who will be less likely to churn or switch to another service provider, adding to their lifetime value.


Customers will also enjoy the convenience that mobile money brings them which elevates their user experience and standard of service received. In the long run, this will strengthen their customer loyalty, making them informal brand ambassadors and recommending your service to friends and family.


Mobile network operators who are serious about regaining a competitive advantage and remaining profitable in the communications landscape need to look to mobile money wallets and other services to expand their value proposition and claim their stake as invaluable service providers.


Airvantage is one of the largest service providers to MNOs across Africa. We specialise in:


●     Advanced airtime and data lending

●     Mobile wallets and mobile money lending

●     Agent lending and handset finance

●     Financial identity as a service


Our extensive credit access means we take on the risk so you don’t have to, allowing you to focus on transforming and scaling your product and service offerings.


If you’d like to learn how Airvantage can help you launch mobile money wallet services to your customers, book a consultation with us.

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