Dr. Wansegamila
JF-Expert Member
- Feb 3, 2012
- 2,968
- 8,139
For mobile money companies to convert more transactions from cash to digital, they need to segment the market more effectively. "The P2P transaction fee business model does not address all the use cases," said Ahmad, Azampay CEO. While virtual goods such as airtime, TV payments and electricity are heavily skewed towards digital payments, most consumers prefer to pay for point of sale goods in cash because it is more convenient and to avoid the transaction fees.
Mobile money companies need to strategise around how to lower fees while creating varied value propositions for different kinds of end-users. "If ten percent of transactions in Tanzania are digital, ninety percent are not. Our thinking is how do we start to expand the pie into that ninety per cent" he said.
Offering convenience at no cost was one value proposition that turned customers towards digital payments on the company's SARAFU platform. The fact that retailers can now order all their goods at competitive prices during convenient hours with free same-day delivery was an advantage they could not pass up.
Mobile money companies need to strategise around how to lower fees while creating varied value propositions for different kinds of end-users. "If ten percent of transactions in Tanzania are digital, ninety percent are not. Our thinking is how do we start to expand the pie into that ninety per cent" he said.
Offering convenience at no cost was one value proposition that turned customers towards digital payments on the company's SARAFU platform. The fact that retailers can now order all their goods at competitive prices during convenient hours with free same-day delivery was an advantage they could not pass up.
