(Alliance News) - FTSE 250 constituents Airtel Africa PLC and Finablr PLC said Tuesday they have entered into an "extensive" global partnership for "seamless" cross-border payments.
The coupling will see Airtel's mobile money operations integrate into Finablr's technology platform, allowing Airtel customers to perform inward and outbound cross-border payments.
"The arrangement will allow customers to leverage Finablr's global network to send money from over 100 countries into Airtel Money mobile wallets across Africa, in a convenient, secure and cost-effective manner," Airtel Africa said in a statement.
Airtel said it will benefit from Finablr's global payment platform, which spans 170 countries, and Finablr said it will be able to expand across Africa due to Airtel's 100 million subscribers in the continent.
"The partnership is viewed by both parties as long term with significant potential to grow. Following the launch, the partners will explore additional opportunities including intra-Africa payments and other value-added services," Airtel said.
The services are expected to be launched market-by-market in a phased manner, with the first country to go live by year-end. Airtel said the launch will also be supported by a "comprehensive" worldwide marketing programme.
"We are excited that Airtel Money will collaborate with Finablr to introduce global payments services, enabling customers to make cross-border remittances, pay bills, make purchases and withdraw cash from our outlets and agents across the continent. This is another important example of how mobile technology will play a key role in changing the way people connect with their homes in Africa," Airtel Africa Chief Executive Raghunath Mandava said.
Finablr CEO Promoth Manghat added: "We are delighted to partner with Airtel Africa, and join hands to deliver affordable and reliable payments services to customers. Together, building on the strength of our technology platform, we are delivering fintech at scale thereby empowering consumers and businesses across the continent."
According to Airtel - using World Bank estimates - inbound remittances to Sub-Saharan Africa grew nearly 10% in 2018, reaching USD46 billion. Remittance remains the primary source of external financing in the region, Airtel said, and is "critical" for its socio-economic development.
Shares in Airtel Africa were down 0.2% in London on Tuesday morning at 57.40 pence. Finablr was 1.1% higher at 162.75p.
By Paul McGowan; paulmcgowan@alliancenews.com
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