FUNDAMO
Based on the rate of adoption, analysts’ predictions and the sheer demand for mobile banking and payment services, this industry migrated from entrepreneurial fringes to the corporate mainstream.
Overview of the year to 30 June 2007
During the past year, a number of important announcements catapulted the mobile banking industry into the spotlight. During February the GSM Association, in collaboration with MasterCard, announced support for international money transfer by making use of mobile phones. Mobile payment volumes started increasing significantly in countries like Japan, South Korea and the Philippines.In Africa initiatives like MTN banking and Celpay (DRC) received big media exposure. The USA market started picking up momentum too with various announcements.
Both MTN banking and Celpay reported good growth in subscriber numbers and volumes of transactions. Celpay (Zambia) reported a growth in revenue to a point where 2% of the country’s GNP is now being managed on the Fundamo system deployed in Lusaka. MTN banking made some adjustments in its business model and distribution strategy and is now growing rapidly.
During the period, Fundamo also sold licences to clients in the Middle East and North America and expects to increase market share in these markets next year. On the back of this increased activity, Fundamo’s turnover grew as expected. During the year, Fundamo raised R36 million (US$5 million) from Mark Shuttleworth’s venture fund (HBD) for product and market expansion. Fundamo also won a number of awards during the past period, amongst others the Frost and Sullivan technology leadership award as well as qualifying as one of South Africa’s Top Technology 100 companies for the sixth year in a row.