Namibia: Magnet's M-Cash to Be Launched Soon

The recently established Magnet Payment Solutions (Pty) Ltd (MPS) had its trading licence from Bank of Namibia (BoN) approved and is poised to launch its M-CASH product in December 2015.

Whilst the licence enables Magnet to issue electronic money in Namibia, their product M-CASH, a mobile wallet will enable users to cheaply send money to and from any mobile number domestically and receive it at any Magnet Bureau de Change branch nationwide, as well as purchase prepaid products (airtime and electricity).

"Yes, our licence from BoN to issue electronic money has been approved and we look forward to entering the market with our exciting new offering," said Maggie von Lüttichau, managing director at Magnet Payment Solutions.

Financial inclusion is slowly unravelling as Namibia joins the world in developing more innovative banking solutions and mobile money services. Since the emergence of FNB's e-wallet services a few years ago, other players have also joined the market. The global mobile money industry has advanced to provide numerous services and features. However, the apparent foundation lies in "send & receive money" and "buy prepaid airtime & electricity".

Namibia has witnessed steady growth of rural to urban and intra-regional migration, and as a result all such people desire to send money home to support their families. This poses a lucrative situation for Magnet as they enter the market with a simple and convenient solution in a needy market.

MPS' initial competitive advantage lies in the favourable nationwide agent network gained from the company's partnership with Magnet Bureau de Change (Pty) Ltd. The bureau has had success in offering international remittances via Western Union for the past four years and established 13 branches in 6 regions.

The importance of financial variety has soared in recent years with the emergence of several financial access options as a key thrust of public demand.

There is a rising opportunity which players in the financial market have not focused on in driving acquisition, origination and servicing costs. Most of the initiatives and incentives are directed toward the conservative banking strategies, which do not offer a solution for all.

SOURCE:NAMIBIAN