African payments company MFS Africa announced that it is acquiring US Fintech Global Technology Partners
African payments company MFS Africa announced that it is acquiring US Fintech Global Technology Partners, a transaction that changes the paradigm of businesses from the developed West, acquiring businesses in emerging markets to expand their global distribution. The purpose of the acquisition was stated to provide MFS Africa users with the ability to access international services while using their mobile wallet. A financial service that is not common in the developed markets.
This transaction points to a significant change in both the technology industry in Africa and how enterprises in developed markets are now looking at the African consumer. Africa has always been a leader in mobile financial services, ever since Safaricom launched m-Pesa over a decade ago. LigaData client MTN Uganda is considered one of the most advanced mobile financial service platforms in Africa, offering multiple financial services to a large percentage of the population.
Africa’s digital economy is large and growing, with an estimated market size of $115 billion, and is expected to reach $712 billion by 2050. The continent will be home to a third of the world’s young people and is urbanizing faster than other regions, Endeavour’s recent report revealed
Now we are beginning to see the integration of financial services beyond just the local market to include international payment rails, remittance, and e-commerce services. A consumer in Africa is now part of the digital economy as much as a consumer in the United States or Europe creating truly bi-directional commerce.
Historically, financial services in Africa have been fragmented and separated by different regulatory, technology systems and a lack of consumers with bank accounts. Mobile banking has offered tens of millions of Africans access to a ‘bank account’ in the form of a mobile wallet enabling them with a proto-bank account that enables them to trade with each other and access new forms of financial services. The integration of these mobile money systems with the international payment systems can create a seamless connection between the African consumer and business owner with the rest of the world will eliminate the friction that has made financial services very costly and difficult to manage for consumers in developing markets.
We are seeing the very beginning of a new economy in Africa and other fast growing emerging markets as new local digital businesses begin to look to partnerships and acquisitions in new markets to expand beyond their local market.
LigaData is supporting global telecommunications businesses harness the power of data analytics and AI to enable innovative MFS solutions.
By Mike Penner, Head of Mobile Financial Services @ LigaData