- Fintech companies, on the other hand, are shaking up the payments industry by reinventing how customers gain access to financial services
- The partnership between Cellulant and Grey Finance makes it possible for users to receive payments from overseas using mobile money in their currency and at their convenience
- In Kenya, only 50-60 per cent of our transactions are digital; in other parts of Sub-Saharan Africa, this is typically 30 per cent or lower
Cellulant considers fintech partnerships as a tool to promote the financial inclusion and growth of individual businesses in Africa and the continent’s overall economy.
Payments have historically been a complex problem for African businesses and the banks serving them.
For this reason, companies need to collaborate with many partners to process the numerous types of payments that customers use. This is necessary since each nation prefers a different group of payment alternatives.
Card payments, an area in which banks perform exceptionally well, have a shallow level of penetration, which presents a challenge for banks considering the size of the population without a bank account and the popularity of mobile money.
Banks and other financial service providers (FSIs) on a continent where merchants and consumers are progressively transitioning to digital payment channels need to discover methods to update their payments infrastructure to remain competitive.
Fintech disrupting the payments landscape
Fintech companies, on the other hand, are shaking up the payments industry by reinventing how customers gain access to financial services. This is how they are disrupting the payments landscape.
Legacy financial institutions can harness their technology to stay competitive in a landscape that is now digital first by cooperating with companies in the fintech industry. On the other hand, fintechs can tap into the existing infrastructure to expand their reach through these collaborations.
“The ecosystem of payment is quite complicated. Banks and financial technology companies need to work together if they want to be successful. We will be able to promote greater financial inclusion across all income levels if we do it this way,” said Faith Nkatha Gitonga, Cellulant’s Country Manager in Kenya, as she was speaking at the Africa Fintech Summit, which was hosted by Dx5 and held at the Radisson Blu Hotel in Upperhill Nairobi (formerly CIO Africa).
She cited the recent partnership between Cellulant and Grey Finance, which makes it possible for users to receive payments from overseas using mobile money in their currency and at their convenience, as a prime example of how partnerships open the door to more efficient and seamless transactions for thousands of people across the continent.
She also disclosed that the primary value proposition that Cellulant delivers to partners like Grey is the capability to combine mobile money and bank transfers within the African continent.
She confirmed that Cellulant feels that many prospects exist in the payment space in Africa because the region is still not a cashless economy yet.
“There are still cash-intensive businesses, such as the fast-moving consumer goods (FMCG) industry, which offer plenty of chances for business owners to innovate and deliver relevant and suitable payment solutions. Even in Kenya, which has one of the highest levels of financial inclusion, only about 50-60 per cent of our transactions are digital; in other parts of Sub-Saharan Africa, this is typically 30 per cent or lower,” she Added
Cellulant sees partnerships with fintech companies as a way to assist financial inclusion and development not only of individual companies but also of Africa’s economy as a whole.
The transformation of Cellulant from a digital content company to a mobile and digital banking service, and finally to a digital payment solution provider, was one of the topics that Faith discussed.
Cellulant stands apart from the competition in the industry thanks to its dedication to satisfying its customers. We always aim for quality and the best possible outcomes when providing customer service in any of our 35 markets.
Faith drew attention to this. “From the beginning, our company’s founders made it a point to foster this culture in all our employees.”
She underlined that this hyper-concentrated attention on the consumer is the primary reason why prominent businesses in various industries, including telecommunications, aviation, e-commerce, food and beverage facilities, retail, ride-hailing applications, retail and payment, trust Cellulant to power their payments.
“We are devoted to ensuring they are well taken care of and happy with our services. We will do everything in our power to achieve this goal. When it comes to business, one of our favourite sayings is, “Follow the money, and you’ll find the client.” We have pursued innovation throughout the years because we want to be at the centre of what the client is experiencing and what they desire. We strive to be one step ahead of that at all times.” She concluded.