Monitise eyes Middle East and African expansion

Time for expansion: Monitise aims to grow Middle Eastern and African reach

Morse spin-off Monitise is grabbing a larger share of the African and Middle Eastern market after signing a joint venture with electronics payment firm Paynet.

Under the deal, the mobile banking services provider, which split from Morse in 2007, will make use of Paynet’s electronic payment network across Kenya, Tanzania and Uganda which connects to 35 regional financial institutions.

Monitise also recently signed a deal with Visa, as it pursues its ambition to become the worldwide leader in mobile money through partnerships with global banks and mobile operators.

Monitise's technology aims to turn mobile phones into "mobile wallets" which can be loaded with money and used to pay bills, deposit and withdraw cash, and receive money transfers. Its services can also be used by people without a bank account as well as those with a more traditional mobile banking account.

Alastair Lukies, chief executive of Monitise, said: “Paynet and Monitise share the same vision of the social and economic benefits which mobile money can bring to developing countries.

“Paynet’s established presence in East Africa and its expansion into the Middle East is a natural fit for our mobile money platform and its continued expansion into these territories with our partners around the region.”

Lukies added: “We firmly believe mobile money is most effective as an ‘open ecosystem’ where you can transact with anybody or any organisation, regardless of your bank or mobile operator. This principle underlies our success in the UK and the USA and is even more important in Africa and the Middle East.”

Bernard Matthewman, group managing director of Paynet, said: “There is a huge demand for secure, affordable and convenient banking and money services across Africa and the Middle East.

"Monitise is a global leader in mobile money services. Its tried and trusted technology and know-how will sit perfectly with Paynet’s existing networks to give people control of their money.

“Many banks and mobile operators in our region recognise the mobile money opportunity but are struggling to find appropriate solutions. The Monitise approach of providing feature-rich mobile money services, as opposed to simply selling a licence, makes it very attractive and relevant to our market.

“This partnership will make a real difference to hundreds of millions of people, giving them greater access to their bank and helping new and existing businesses prosper.”