In collaboration with two investors, Rapyd and General Catalyst, MultiChoice Group will establish Moment, a pioneering payment infrastructure platform dedicated to businesses throughout Africa.
Moment’s primary objective is to revolutionize the African payments landscape, providing businesses with an expanded and streamlined payment infrastructure that ensures more accessible, faster, and more cost-effective transactions according to buyers’ and suppliers’ preferences.
It will also consolidate the $3.5B in payments that the MultiChoice Group processes annually to expand options for subscribers and make payment processes efficient, as well as extend Africa’s most complete payment network to African and global businesses to ultimately make digital payments more accessible, reliable, and efficient for domestic, cross-border, and global transactions.
Speaking on the joint venture partnership, Calvo Mawela, MultiChoice Group CEO, said,
Investing in this venture is a logical progression for us, as we already process payments every month from 22 million households across 50 countries in Africa. Moment fulfils our strategy to expand our ecosystem by investing in adjacent businesses that provide scalable services underpinned by technology.
The overarching goal of Moment is to establish a robust pan-African payment infrastructure catering to the needs of the 44 million small businesses operating across the continent. Also, it aims to facilitate the shift from cash-based to digital transactions, transforming the current 90% of retail transactions conducted in cash. The mission goal is to enhance accessibility to digital transactions for the 350 million underbanked or unbanked consumers in Africa.
MultiChoice taking a different approach in the streaming competition
This new approach adopted by MultiChoice represents a strategic endeavour to elevate itself amidst the challenging economic climate while distinguishing itself from streaming competitors within the market.
Although MultiChoice has experienced a hike in subscription costs this year, accompanied by a decline in its share price during the final month of the first quarter, these developments could be attributed to the impact of economic challenges on its business operations.
Nonetheless, MultiChoice aims to differentiate itself by providing consumers with a comprehensive range of viewing options and expanding its services to encompass payment solutions across more than 40 African countries, leveraging over 200 locally preferred payment methods with Moment.
This payment infrastructure platform hopes to facilitate seamless collection, disbursement, and risk management, while simultaneously driving the adoption of cutting-edge payment methods such as PayShap, TCIB, and NQR across all target markets.
Furthermore, with Moment, MultiChoice is looking to enable global-Africa trade for importers and exporters by offering virtual accounts in over 40 currencies and local payment capabilities in more than 130 countries.
Through these robust payment tools, extensive inventory, and a suite of financial services tailored to micro-entrepreneurs and SMEs, MultiChoice seeks to enhance customer satisfaction by providing seamless payment options, opportunities for savings, and enticing rewards.
Fintech industry in Africa
Africa is home to a substantial number of unbanked adults. This prevalent financial exclusion is primarily attributed to various factors, including the high costs associated with traditional banking, inadequate infrastructure, and limited financial literacy among the population.
In recent years, the emergence of fintech companies has presented a promising solution to address financial inclusion challenges in Africa. Fintechs, or financial technology companies, leverage innovative digital solutions to provide accessible and affordable financial services to underserved populations. These technology-driven platforms offer various services, such as mobile banking, digital payments, microfinance, and peer-to-peer lending.
The importance of fintech in promoting financial inclusion cannot be overstated. By harnessing the power of technology, these companies overcome traditional barriers and reach individuals who were previously excluded from the formal financial system, and this is what MultiChoice is looking to do with the new joint venture, Moment.
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