JOHANNESBURG, (CAJ News) – MULTINATIONALS corporations and informal merchants in the Fast Moving Consumer Goods (FMCG) sector are set to benefit from a partnership agreement between MTN Business and Switching House.
These will partner on a cashless payment solution that bridges the divide between the large enterprises and cash-based informal merchants.
It is envisaged this would result in reduced costs, increased security and greater efficiencies around payments.
Debbie Minnaar, General Manager: Products and Services, Group Enterprise Business Unit, MTN, said this solution is aligned with MTN’s efforts to deliver digital services to its multinational clientele, while at the same time serving the underserved.
It is estimated that around 70 percent of informal merchants in Africa are not able to make and receive electronic payments, and therefore recognise the value of inclusive payment solutions.
“This switching payment solution will enable MTN to increase the economic participation of informal cash only merchants in Africa while allowing users to safely transact in a digital space, to benefit both FMCGs and Consumers,” said Minnaar.
Leveraging off of MTN Mobile Money, the solution will enable informal merchants and traders to pay for goods using their mobile device and without the need for a formal bank account.
Multinationals benefit from transactions occurring in real-time, and the elimination of the risks and administrative overheads associated with cash transactions, as well as a reduction in costs associated with formal banking.
Customers can access the solution through various devices such as smart and feature phones.
The solution is currently active in Uganda and will be rolled out to further other African markets in early 2016.
– CAJ News