Pakistan: Branchless Banking - Competition Intensifies with New Entrant

Sep 2014
Pakistan, September, 07 2014 - An intense competition among telecom companies is forcing them to come up with innovative ideas to attract and keep subscribers hooked to their networks.

Their top-most priority is to provide quality coverage in distant areas. This goal has recently been achieved via strengthening of their network base with the third and fourth generation technology.

Money transaction via mobile is the emerging trend all telecom companies are focusing on. The latest entrant in this market is Warid Telecom, which gave second thoughts about quitting the market and decided to invest $400 million to strengthen and upgrade its network. For the company, Mobile Paisa is an important inclusion to the business plan.

“We always struggled to maintain a high level of customer expectation through our best services that are personalised around customer’s desires,” said Faisal Khan Sadozai, Director of Mobile Financial Services, Warid Telecom, in an interview with The Express Tribune.

“Mobile Paisa is a convenient cash management service available on mobile phone. It is mainly about facilitating money transfer for both the unbanked and banked customers. The service can be used for reloading airtime units and for payment of utility bills, and in future, also for goods and services,” he said.

At present, Warid has some 10,000 agents in 500 towns delivering services that they are aiming to triple in a couple of months. The company has aggressive plans to cover areas, which are still unexplored by other operators and have potential markets.

The management claims that they have a strong edge on the technology front, human resource and most prominently have entered into a partnership with Bank Alfalah, its sister concern.

“This is a perfect combination for Mobile Paisa to boost services and become a game changer,” Sadozai said.


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