GSMA Says All Three Madagascar Mobile Money Providers Will Work Together

The GSMA announced on Monday (Sept. 12) that all three mobile money providers in Madagascar, including Airtel Money, mVola and Orange Money, are launching interoperable mobile money services across the country.

According to a press release, GSMA said the launch makes Madagascar the second African market, following Tanzania, where all mobile money providers are making their services work with each other, enabling transactions to flow easily across all mobile money providers.

“The launch of interoperable mobile money services across all networks in both Madagascar and Tanzania underscores the mobile industry’s commitment to delivering life-enhancing financial services to consumers. Greater financial inclusion will empower the underserved and drive economic growth across the country,” said John Giusti, chief regulatory officer of the GSMA, in the press release. “In Madagascar and Tanzania, there are more mobile money accounts than bank accounts. Traditional ‘bricks-and-mortar’ banking infrastructure tends to be far from poorer communities; therefore, interoperable money services will deliver significant long-term benefits to citizens, extending the range of digital financial services provided and ultimately serving as a safer and more reliable replacement for cash as a means of payment in day-to-day transactions.”

According to the GSMA, in developing markets, 1 billion people have no formal bank account, but they do have access to a mobile phone. Offering customers access to mobile money leverages the widespread use of the mobile phone, as well as the extensive coverage of mobile networks to enable customers to have a safer, more secure and convenient way to access financial services. The GSMA noted that the GSMA Mobile Money program is designed to work closely with mobile operators and industry players to drive adoption of a mobile money ecosystem. It provides tools and insights to help deployment, as well as supports the creation of enabling regulatory environments to expand digital financial inclusion.