Wednesday , October 5 2022

Music streamers turn to telcos to pay Africa


JOHANNESBURG / STOCKHOLM, October 15 (Reuters) – Africa, with its internationally-muscled musical talent – and the use of mobile phones – is the hub of Swedish music streamer Spotify’s (SPOT.N) to reach a billion customers.

As African artists such as Nigeria’s Barna Boe and South Africa’s Blake are circulating worldwide, the continent is seen as the highlight and it is home to more than a third of the company’s 85 new markets.

The problem is payment on a continent where many people are more likely to have a mobile phone than a bank account.

This means Spotify’s first task as it launches a project that was announced in February is almost to double its point in order to win over telecom companies that are often equal to banks.

Phiona Okumu, head of Spotify Music for Sub-Saharan Africa, told Reuters the company had secured “alternative payment methods”, namely M-Pesa, when it moved to Kenya in February.

Owned by Kenya’s Telecom Telecom operator, Safaricom (SCOM.NR), M-Pesa has been used to send, save, borrow and pay for goods and services.

“Many African countries are non-banks which means they do not use credit cards and this is very true for most parts of the East African country and in Kenya you use M-Pesa for the most part,” said Okomo.

Africa In Africa This year, Spotify is seeking villains seeking rators.

“We are working with the right partners partners to ensure that we are providing solutions to payment problems that are facing many African consumers in different parts of the continent,” Okumo said.

Earn mobile money

Irene Coffin, a Spotify premium user in Kenya, said she prefers M-Bank to bank cards because she believes mobile money has made music accessible and accessible.

“Most of us have access to our phones, but most of us don’t have cards, or bank accounts,” the 31-year-old told Reuters.

Opening a bank account has led to an increase in appeal costs, distance to financial institutions, and difficulty in getting “your clients” to address the use of phones for payment due to inadequate proof of address.

A spokesman for South Africa’s Absa Bank (ABGJ.J) said in an emailed statement: “In the last few years there has been an emphasis on the expansion of modern banking services through mobile technology.

A trade has been revealed on a computer screen that shows the Spotify brand before the company starts selling as a direct listing on the floor of the New York Stock Exchange on April 3, 2018 in New York, US. REUTERS / Lucas Jackson // File Photo

By 2020, Sub-Saharan Africa had 548 million mobile money accounts, up 12 percent from 2019 – 12 percent from any region in the world, y’know, said GSMA, head of the mobile industry.

It has provided banking access to a continent where approximately 43% of sub-Saharan Africans over 15 years old had a bank account in 2017, according to the World Bank, which has not provided more recent data.

Victory, victory

Local competitors of Spotify, such as Kenya and Thailand and Danish-listed Mdundo (MDUNDO.CO) and Nigeria’s Headquarters BoomPlay, have also begun to establish lap-ups with mobile operators.

There are partnerships selling music bundles at telecom providers that give customers access to a streaming company’s premium service, and in particular music music music.

Collaboration can benefit both sides and boost revenue and help bring in subscribers, but for streaming companies, it’s all but necessary.

“It is critical that streaming companies get this right, otherwise they will lose the revenue of the users who were willing, but not able to pay them,” said Charles Stuart, PwC partner and director of technology, media and telecommunications. Communication said.

Stewart said that for telecom companies, including Airtel Nigeria (AAF.L) and Vodacom Tanzania (VODA.TZ), the partnership could help customers achieve “loyalty and stickiness” with the added cost.

MTN (MTNJ.J), Africa’s largest mobile operator with 48.9 million active mobile money users, is integrating its mobile money service into its Music Time app to allow payments, according to the group’s chief digital and Amazon. Serengeti Deim, a three-time Tech Tech officer, brought the Reuters.

“We are talking to players who are just music players and we are also interacting with players who have broad access to music, video and gaming and who can improve our digital services position,” said MTN’s Devam. Said.

BoomPlay, which has 60 million monthly active users, has allowed users to pay through mobile platforms such as M-Pesa and Tigo-Pesa in Kenya and Tanzania.

It is intended to release this option in francophone countries.

Mdundo, which has 8.7 million monthly active users, has three telecommunications partnerships in Nigeria and Tanzania, and expects one or more similar deals or deals to be reached by Chief Executive Officer Martin Nelson Reuters later this year.

“When it comes to payments to Africa and Africa, our main focus is with Telkos…

Reporting by Nqobile Dludla by Johannesburg and Supantha Mukherjee ۾ Stockholm; Editing by Barbara Lewis

Our Standards: Thomson Writer Trust Principles.

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