Telekom Networks Malawi Limited (TNM) has launched a mobile money service named Mpamba to champion its effort of adding value to the development of the country’s economy.
The service, to be overseen by an independent board of trustees, is launched following approval by the Reserve Bank of Malawi and is poised to offer financial services to banked and unbanked, urban and rural population.
Speaking during the launch of the service in Blantyre, TNM Managing Director, Willem Swart said the mobile money initiative will change and transform how payments are done in the country through priceless transactions that are convenient, affordable and reliable thereby becoming a building block in turning Malawi into a great nation.
“This is our commitment in developing services that every industry can use. Through the service, our customers can make transactions through their phones. Different sectors of economy can participate in creating value by using mobile money services. To ensure the system is 100 percent running, we have set our systems in Limbe and Lilongwe to guarantee availability at all times,” Swart said.
Mpamba Mobile Money Service will operate under a mobile money intelligent platforms and systems supplied by Fundamo, a subsidiary company of VISA, the largest card company in the world.
Through Mpamba accounts, customers will be able to pay for services through their mobile phones from anywhere in the country which include, deposit and withdraw money from Mpamba account at any of TNM agents, send money from Mpamba account to another account of a friend or family member.
The mobile money service will also allow customers to pay merchants or vendors for goods and services, pay for utility bills such as water and electricity (both post and prepaid), digital satellite television (DSTv) among other services.
Soon, according to the mobile operator, the Mpamba Mobile Money service will incorporate other services such as school fees and bulk (salary) payments, social cash transfer as well as loans payments.
Through the service, customers can also transact bank push and pull, thus, moving money from their bank accounts registered under the service into their Mpamba account which can be cashed out later.
Meanwhile, TNM has partnered with over 1, 000 commercial businesses which will allow customers on Mpamba Mobile Money service pay for goods and services using their accounts on TNM mobile phone. Some of the business partners include GOtv, Steers and Debonairs.
“As required by Reserve Bank, the board of trustees will oversee the funds service customers deposit in their Mpamba accounts, which will be safeguarded in Trust Accounts held at National Bank and First Merchant Bank. The Board of Trustees has oversight responsibility for the funds in these accounts,” reads the statement from TNM.
“The funds in the Trust accounts will earn interest and over time the accumulated interest will grow. In line with Guidelines for Mobile Payments issued by Reserve Bank, such interest will not be to the benefit of any TNM Mobile Money participant including TNM. The Board of Trustees will use the interest funds and income thereon accumulating to engage into social investment. Programs for the benefit of the great nation as the Trust at its sole discretion may determine from time to time,” Swart added.
He further said the full costs of the operations for the mobile money business will be borne by TNM and not the Trust, adding the revenue from transactional service fees paid by the customers will also accrue to TNM.
As a promotion, customers registering to the service are getting a bonus of K500 worth of airtime for registration from May to July 2013, 50 percent bonus when buying airtime of not less than K500, 100 percent bonus when buying airtime of more than K100.
The launch of the service follows a two-month trial as required by RBM and the whole system has been in place for almost six months now.
Through the service the country is expected to earn several benefits including social financial transformation, financial inclusion of the unbanked people, generating economic linkages in the value chain as well as increasing Gross Domestic Product (GDP) for the country.Follow and Subscribe Nyasa TV :