The Ecobank-Airtel's Fusion of Banking and Telecom
No matter how we see it, there will be convergence between mobile internet and finance, in Africa, at a deeper level beyond mobile apps and web apps. The new partnership between Airtel and Ecobank makes that clearer. With this partnership, Airtel and Ecobank evolve into a fusion of telecom and banking ecosystem. MPESA remains the standard in that redesign but MPESA will not necessarily be the future because MPESA has a marginal cost problem. There needs to be a new layer where transaction and distribution costs simply disappear! Only symphonic innovation through fusion of banking and telecom will enable that in finance, in Africa.
Airtel Africa, ... and Ecobank... have signed a partnership which will allows millions of Airtel Money and Ecobank customers across Africa to improve their access to mobile financial services and carry out a variety of mobile transactions
This partnership, which is subject to regulatory approval in each market, will enable Airtel Money customers , through Ecobank’s digital financial services ecosystem, make online deposits and withdrawals, effect real time domestic and international money transfers, make in-store merchant payments, and access loans and savings products amongst others.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
The partnership will also allow Ecobank corporate account holders to make bulk disbursements, such as payroll payments, directly into Airtel Money customer wallets. Additionally, Ecobank will be able to sponsor Airtel Money to issue both virtual and physical debit and pre-paid cards to Airtel Money customers.
After all the balkanizations, disruptions and fights; we still expect convergence or M & A, your capacity to do big things is very limited, when you are too small.
We will see more of this in the future.
