Nokia targeting at least 300 million customers by the end of two years
Traditional money transfer firms face tough times even as banks come up with new strategies to counter blistering competition from mobile cash transactions that put a strain on their deposits growth.
In addition to aiming to become the world’s largest entertainment network through its vast share of the mobile handset market, Nokia, the Finland-based firm, now aims to become the world’s largest mobile bank as well.
The mobile phone giant with up to 1 billion customers around the world is seeking to tap into a market of at least 4 billion unbanked people globally with its money transfer service.
The company recently unveiled Nokia Money, a service for extending cash transfer to those without banks around the world which is expected to be gradually rolled out next year to selected markets worldwide.
On December 7 in Cairo, Alex Lambeek, Nokia vice-president for mobile phones, told journalists from Middle East and Africa that the firm is currently building a wide network of Nokia Money agents where consumers can deposit or withdraw cash from their accounts.
He said the firm is also seeking regulatory approvals from various countries and, at the same time, growing its partnerships ahead of the official rollout of the service.
Growing interest
In addition to news about Nokia Money, in what appears to be growing interest from global firms in markets in Africa and other emerging regions, Nokia also launched its latest devices in the company’s range of handsets focused on mapping and navigation, the Nokia 2710 Navigation Edition.
Normally, firms unveil new products in developed economies and later gradually roll them out in countries in Africa. But this launch was the opposite, demonstrating the potential that the continent and Middle East have to the growth of companies. The new handsets will be available in the second quarter of next year.
When Nokia Money is established in the region, it will join Zap, Zain Kenya’s money transfer platform, and M-Pesa, Safaricom’s flagship mobile money transfer service.
This is expected to further tilt the scales in the money transfer market that is already very competitive.
Early in the year, Zain enhanced Zap to allow any of its over five million customers in the three countries where the service is active – Kenya, Uganda and Tanzania – to transfer money in seconds using the mobile phone platform.
Users can receive cash from anywhere in the world directly to their mobile handsets as well as send funds directly to their bank accounts.
Eddy Rizk, general manager Nokia North Africa, says unlike the current service providers, Nokia Money will enable transactions to be done by subscribers to any network in the world.
The service will not be limited by national borders as it is with local or regional players.
