Altech buys mobile money firm

2011-08-24 08:01

Johannesburg - Allied Technologies [JSE:ALT] has acquired 100% of the equity in Eyenza Mobile Money.

Eyenza Mobile Money is a wallet-based system whereby a deposit is made into a central pool account after the user has registered and a wallet is created and linked to the user's MSISDN number. The user can then transact to the value of the deposit (funds in their wallet).

Commenting on the acquisition, Altech CEO Craig Venter said the group had long identified the need to become involved in this rapidly growing area in the mobile payments market, but it has taken time to identify what it believes is a suitable point of entry.

"Eyenza's offering is unique as it can offer very competitive prices on its services due to its low cost structure and convenience factor. Currently, the unbanked population of South Africa has large monetary and inconvenience costs associated with transferring money to family members, paying of bills and purchasing pre-paid products. This service is set to change that," he said.

Eyenza is not affiliated to any mobile or banking brand so it does not require an existing registered bank account and can be directly marketed to the unbanked.

Services currently offered include prepaid airtime, prepaid electricity, third party payment services (for example, clothing accounts) and making transfers to other account holders.