Globacom and UBA are set to launch a mobile money service called U-Mo. This was revealed this past Friday when a Memorandum of Understanding (MoU) was signed between Afripay Ltd, a member of the UBA Group and Glo Mobile. (Afripay Ltd. recently obtained a mobile money license from the Central Bank of Nigeria).
The service will allow mobile phone subscribers to open mobile money accounts to store Electronic Value (EValue) of money easily on their mobile phones using their mobile numbers as their account numbers. Money transfers to any mobile phone number will be enabled as well as their uses such as the ability to pay for goods and services via their mobile money account among others.
Nigeria’s mobile payments industry is a particularly interesting one given the large number of mobile phone subscribers – about 90 million according to the National Communications Commission. It goes without saying that the sector currently has massive unexploited potential.
Kenya’s mobile payments sector has been incredibly successful with Safaricom’s M-Pesa service transferring the equivalent of 11% of Kenya’s GDP in 2010.
It will be interesting to see how the sector takes shape in Nigeria. We will keep you posted.
About United Bank for Africa
United Bank for Africa (UBA) is one of Africa’s leading financial institutions and is the product of the merger of Nigeria’s third (3rd) and fifth (5th) largest banks, namely the old UBA and the erstwhile Standard Trust Bank Plc (STB) respectively, and a subsequent acquisition of the erstwhile Continental Trust Bank Limited (CTB). It offers universal banking to more than 7 million customers across 750 branches in 19 African countries and has a presence in New York, London and Paris.
Globacom Limited is one of Africa’s fastest growing telecommunications company. Owned by the Mike Adenuga Group, Globacom operates in Nigeria, the Republic of Benin and has recently acquired licenses to operate in Ghana and the Ivory Coast.