Airtel Africa, the second-largest mobile network in Nigeria, on Monday said it has secured a partnership with Ecobank Transnational Incorporated (ETI), the parent company of the pan-African banking group, Ecobank.
With the pan-African bank’s operations in 33 countries, Airtel is looking to tap into the network and push its mobile money services to millions of people across the continent. Although the telco is in 14 countries, its Airtel Money service is yet to reach the markets where it currently services.
The link-up with Ecobank will not only address this deficit, but it will also help the telco compete with established giants like Safaricom and MTN which presently share the top two mobile money positions on the continent.
As part of the partnership, Ecobank customers will be able to make bulk disbursements, such as payroll payments, directly into Airtel Money customer wallets. Ecobank will also be able to sponsor Airtel Money to issue both virtual and physical debit and prepaid cards to Airtel Money customers.
“This partnership is a further demonstration of Airtel Africa’s commitment to providing affordable, simple and innovative solutions for our consumers across Africa,” said Raghunath Mandava, CEO of Airtel Africa. “We will continue to offer locally relevant m-Commerce solutions with partners like Ecobank to enhance the daily lives of our customers.”
Airtel is one of the frontline applicants for Payment Service Bank (PSB) license in Nigeria which the Central Bank of Nigeria (CBN) has promised to deliver very soon as part of efforts to drive financial inclusion. Interestingly, Ecobank also has a large presence in the Nigerian market. The Nigerian leg of the partnership, therefore, is likely to kick off subject to the approval of Airtel’s license application from the CBN.
Once approved, Airtel Money customers in Nigeria will be able to make online deposits and withdrawals, effect real-time domestic and international money transfers, make in-store merchants payments, and access loans and savings products amongst others using Ecobank’s digital financial services ecosystem.
“We believe that financial inclusion can ultimately contribute to economic development, collaborating with major telecommunications providers in Africa is, therefore, a key strategic driver towards closing the gap between the banked and underbanked,” said Ade Adeyemi, CEO Ecobank Group. “This potential extensive reach will further provide convenience to customers, intra-country and particularly for cross-border transactions and remittances across Africa.”
FRANK ELEANYA
