Mobile Commerce Insider Featured Article

September 15, 2014

Millicom and Kalixa to Provide Online Payments Processing in Africa and Latin America

Not having financial infrastructures is one of the biggest hurdles developing countries around the world face as they try to grow out of the poverty the vast majority of their population currently experience. Without banks or other payment systems in place, it is difficult to conduct transactions beyond their neighboring environment, thereby limiting their growth. A new joint venture between Millicom, an international telecommunications and media company, and Kalixa, provider of omni-channel payments with a single payments platform, have developed an online payment service to operate in Africa and Latin America.

The collaboration between the two organizations will start providing services for merchants with a payment gateway and POS solution while consumers will have the option of a1-click payment and eWallet platform for online services.

The new system is designed to address the multi-device and cross-platform services that exist across these regions by covering the end-to-end payment ecosystem. According to Millicom, the service will initially be available in Colombia and Brazil in the second half of 2014. Once it has been established, the company will use its network infrastructure in 14 countries and online partnership in 31 countries across Africa and Latin America to deliver a reliable e-commerce solution.

Millicom’s CEO and President, Hans-Holger Albrecht said “Working with Kalixa will enable us to offer a complete digital payments service in markets where ecommerce is growing rapidly and where we already have a strong presence. It is a great combination of our respective expertise.”     

Kalixa will bring a full range of payment services that includes issuing, acquiring and acceptance solutions to over 8,000 merchants across 100 markets with its four core products: Kalixa Pay, a prepaid e-wallet with 200,000 users across Europe; Kalixa Pro, an mPOS for small businesses and sole traders; Kalixa Accept, which allows merchants to accept more than 200 payment methods; and the PXP Payment Gateway with customers including Urban Outfitters, Intercontinental Hotel Group and MasterCard.

Even in the most impoverished communities, these regions present great opportunities for e-commerce providers because of the high adoption rate of mobile technology. Currently the world's unlikely leader in mobile payments is Kenya. Even though close to 60 percent of Kenyans live on less than $2.50 a day, the vast majority have mobile phones, which they use to pay for everything from cab rides to sending money to their relatives in rural areas. This has resulted in in Kenya having half of the mobile money transactions in the world, with annual transfers of $10 billion.




Edited by Maurice Nagle




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