As the COVID19 pandemic persists globally, the world continues to explore emerging opportunities informed by morphing appetites for digital platform use in the faculty of alternate channels. Africa’s second largest copper producer Zambia has continued to see increased usage of MoMo for touchless transactability whose velocity has increased significantly over the last one year. Ecosystems partnerships have become more prominent as customer value chains evolve. This has accelerated digital strategy for most if not all players in the payment system.
Read also: MoMo sprints 81% in 1Q21 as contactless payment appetite leaps
State owned Mobile Network Operator – MNO Zambia Telecommunications Company on June 18, signed a landmark strategic partnership with Mastercard which will enable the telco’s mobile money clients perform safe and seamless digital payments on the Mastercard network including international e-commerce transactions. The unique feature of this partnership is that it will cater for a clientele base even without accounts setting a springboard for financial inclusion in a digital ecosystem.
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“We are very excited about this partnership with Mastercard, which is another step in realizing our ambition to become a digital lifestyle partner of choice. With access to Mastercard’s unrivalled network of merchants, this partnership instantly increases the ecosystem of locations where our mobile wallet can be used, bringing greater convenience, more choice, and an enhanced user experience for our customers,”
Zamtel Chief Executive Officer Sydney Mupeta
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Some of the key solutions the partnership will provide will include a cocktail of Mastercard virtual solution, a physical debit card, and Mastercard QR, giving its clients new ways to access and pay for products and services at the millions of merchants compatible with Mastercard globally.
With a Mastercard virtual (non-plastic) payment solution linked to Zamtel Mobile Money wallets, consumers and small businesses can make payments to local and global online brands and merchants, expanding their reach to an international online marketplace. This means e-commerce transactions can be done instantly through mobile wallets for a wide variety of payments including for travel, entertainment subscription services and bill payments, while ensuring that the customer’s financial data is always secure and private. For in-person payments, Zamtel Mobile Money customers will obtain a physical Mastercard debit card linked to their Zamtel Mobile Money wallet, which they can use to withdraw money from ATMs and pay at point of sale for goods, services and settle their bills.
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“As more consumers embrace online and digital experiences, new digital payment partnerships are evolving, which are transformative for the growth of economies. We are pleased to advance our digital partnerships strategy in MEA with Zamtel, as we support their digital transformation and bring more seamless payment experiences to their customers. Telcos play a critical role in enabling the digital economy and hence are a critical partner for us to drive the financial inclusion agenda forward.”
Amnah Ajmal, Executive Vice President for Market Development, Mastercard Middle East and Africa
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Customers will also have access to Mastercard QR, an interoperable payment solution that will enable them to make face-to-face payments at outlets by scanning the Mastercard QR code displayed at checkout or by entering a merchant identifier.
The GSMA in its annual ‘State of the Industry Report on Mobile Money’ revealed a dramatic acceleration in mobile transactions during the COVID-19 pandemic as lockdown restrictions limited access to cash and financial institutions. The report reported 13% global growth in 2020 to more than 1.2 billion mobile money accounts (double the forecast).
The Kwacha Arbitrageur
