Enabling money transfer interoperability within Tanzania to realize true potential of mobile money
About
Applicant name: Airtel Tanzania and Mahindra Comviva
Innovation Name: Domestic mobile money interoperability
Innovation Type: Service
Website: http://www.africa.airtel.com/
Mission: Enabling money transfer interoperability within Tanzania to realize true potential of mobile money
Innovation Description: 21Mn Tanzanians use Airtel Money, Tigo Pesa & M-pesa, but one service user cannot transfer money to other service user. Operators introduced off-net transfers, where recipient receives a code via SMS, which he shows to agent to get cash in 7days. But Off-net txns are digital-to-cash, costly & inconvenient
Solution: Airtel Money integrated with Tigo Pesa & M-Pesa to launch Africa’s 1st domestic interoperable mobile money service allowing users to directly transfer money btwn 3 services. Comviva helped Airtel to establish secure technical integration with Tigo Pesa & M-Pesa & align customer service, settlement & compliance processes
Consumer benefits
Convenient: Instantly send/receive money to/from other network users digitally. No rush to cash-out in 7days
Same cost to transfer money to all networks
Interoperable txn is 500% cheaper than off-net txn
Secure: money retained in digital form
Operator benefits
Cost-savings: No cash-out commission to be paid to agents
Increases P2P transfers
Creates level playing field, retains customers
Status of Innovation: In-market
Innovation Active Since: 02/18/2016
Applicant Type: Private Company
Headquarter City: Gurgaon
Headquarter Country: India
Year Founded: 1999
Main Category
Main Category Choice: Remittance Synergies
Why do you think you should win this category?:
Synergy of Collaboration: First time 3 competing services collaborated to launch Africa’s 1st interoperable mobile money transfer service. Created win-win for all:
Direct cross-network digital money transfer enhances consumer convenience, increases txns
500% cheaper than off-net
Network effect: Grows reach from 6Mn Airtel users to 21Mn
Cashless Tanzania vision: Digitizes more cash & retains it in digital form
Prevents customer from reverting to cash
Saves money for operators by reducing cash-out/cash-in commissions
Increases system efficiency by reducing off-net txns & fund reverts
Unique technical approach: Instead of using costly interoperability switch, Airtel made integrations with Tigo Pesa & M-Pesa & made changes in mobile money software. This simple unique cost-effective approach helped to rapidly launch interoperability
Phenomenal uptake
2Mn monthly interoperable txns
Before interoperability 89% on-net, 11% offnet txns. After interoperability 48% on-net, 48% interoperable, 4% off-net txns
P2P transfers grew 105% in 2 yrs
Secondary Category
Secondary Category Choice: End-user Experience
Why do you think you should win this category?
Interoperability enhances user experience in many ways:
Easy to use: Sending money to customers on other networks is as simple as sending money to customers on own network.
Quick: Money is instantly received by recipient in his mobile money account & he can use it in digital format immediately to pay bills, pay merchant or transfer to other
Transparent and easy to understand pricing: Customer pays same charge while transferring to Airtel Money, M-Pesa or Tigo Pesa user.
Cheaper: interoperable transfers are 500% cheaper than off-net transfers
Peace of mind: Unlike off-net transfers, there is no rush to cash-out in 7 days. Recipient can store money digitally as long as they want
Impacts consumer-behaviour: Interoperability simplifies cross-network remittances, preventing customer from reverting to cash and displaying multi-SIM behavior
Phenomenal uptake
2Mn monthly interoperable txns
Before interoperability 89% on-net, 11% offnet txns. After interoperability 48% on-net, 48% interoperable, 4% off-net txns
P2P transfers grew 105% in 2yrs
Team Members
Full Name: Mohit Bhargava
Role: Manager, Product Marketing – Mobile Financial Solutions
Linkedin: https://www.linkedin.com/in/
Full Name: Prabhu Ram.S
Role: Senior Group Manager (Project head)
Link: https://www.linkedin.com/in/
Supporting Links
Detailed Description: Domestic Mobile Money Interoperability from Airtel Tanzania and Mahindra Comviva: https://www.mahindracomviva.
News for launch of mobile money interoperability in Tanzania by Airtel, Tigo and Vodacom: http://www.telecomlead.com/
Article on mobile money interoperability: https://www.linkedin.com/
Video describing mobile money interoperability in Tanzania: https://www.youtube.com/watch?
