GTP’s prepaid and mobile payment software integrates multiple prepaid cards with a single bank account and allows users to make prepaid payments for online shopping and ATMs. With this acquisition, MFS Africa wants its mobile money users who do not have bank accounts to access prepaid cards. With these prepaid cards, these users can access products and services from international companies like Netflix and Amazon, which do not accept digital money payments from Africa.
With his acquisition, MFS Africa is banking on the growing needs for international products like Netflix, Amazon and global e-commerce platforms. But with mobile money prevalent in so-called under- or unbanked areas, mainly rural, are users in these areas the target market for these international products and services?
Also, MFS Africa has made a deal with Spotify to allow the music subscription company to accept mobile payments from customers in Kenya, Uganda and South Africa. Does this type of partnership need expansion instead of the acquisition of GTP to provide prepaid cards for similar products?
On the other hand, this expands the access to financial services to the typically unbanked, improving financial inclusion on the continent.
MFS Africa is not the only African fintech trying out this strategy. Safaricom’s M-Pesa, Africa’s most successful mobile money service, recently partnered with Visa to launch virtual cards for M-Pesa’s 30 million users to make digital payments globally, expanding from its mobile money payments product.