How payments hold the key to boosting VAS in MENA and beyond

Anyone visiting World Telemedia in Marbella earlier this month will have come away sure in the knowledge that the MENA region is experiencing rapid growth in the telecoms value-added services (VAS) and telemedia market.?This growth is driven by several factors, including a young and tech-savvy population, increasing smartphone penetration and the rising popularity of mobile internet.?As a result, telecom operators in the region are increasingly investing in VAS and telemedia services to meet the growing demand from consumers and businesses.

However, one of the key challenges facing the MENA market is the lack of robust and efficient payment tools. This is particularly true for VAS and telemedia services, which often involve small, recurring payments. Traditional payment methods, such as credit cards and bank transfers, are not always convenient or accessible for consumers in the region. As a result, many consumers are unable to access the full range of VAS and telemedia services available to them.

To address this challenge, telecom operators in the MENA region are increasingly exploring alternative payment solutions, such as mobile money and direct carrier billing.?Mobile money is a popular payment method in many parts of the region, as it allows consumers to make payments using their mobile phones without the need for a bank account. Direct carrier billing allows consumers to charge purchases to their mobile phone bill, making it a convenient and secure way to pay for VAS and telemedia services.

And there has been a flurry of activity in recent weeks to address this issue and further push the MENA market. With digital payments in the Middle East, Turkey and Africa (META) projected to grow at a compound annual rate of approximately?17.7%?from 2023 to 2030, the region’s payment landscape is set for substantial evolution. Geidea( geidea ), one of the region’s leading financial technology companies, has announced a strategic partnership with?tpay ( tpay Mobile ), the leading payment connector in the region

Together, they aim to reshape the digital payments space by offering an integrated suite of payment methods, including Direct Carrier Billing (DCB), card payments, and e-wallets, all accessible through a single aggregator. This collaboration is designed to enhance the payment experience for merchants and consumers while driving financial inclusion across the region.

The partnership represents a major step forward in tpay’s journey to becoming a fully integrated payment enabler, capable of meeting the diverse needs of merchants in KSA, Egypt, and the UAE. By joining forces, tpay and Geidea complement each other’s strengths, offering a unified payment solution that simplifies digital transactions and provides a broad range of payment options within a single platform. This approach not only strengthens tpay’s service capabilities but also extends financial access to underserved communities, narrowing the gap in digital financial services across META.

Meanwhile, in sub-Saharan African, Orange Middle East and Africa (OMEA), the MENA offshoot of global telecoms company Orange, has formed a partnership of its own with Mastercard, to expand access to mobile financial services across Sub-Saharan Africa. This collaboration, one of the largest of its kind in the region, is set to enable millions of Orange Money wallet holders to access digital payments through Mastercard’s global network of merchants by 2025.

The partnership will be rolled out in seven countries including Cameroon, Central African Republic, Guinea-Bissau, Liberia, Mali, Senegal and Sierra Leone.

With only 48% of the adult population in Africa banked, according to?the African Digital Banking Transformation Report,?the collaboration between Orange and 萬事達卡 is designed to accelerate financial access, contributing to the financial empowerment of underserved communities. Orange Money customers will be able to instantly obtain a virtual or physical debit card, linked directly to their Orange Money wallets. These cards will allow seamless payments both locally and internationally, enabling transactions with local merchants and on any website or mobile app that accepts Mastercard. Customers can easily request their virtual debit card via Max it — Orange’s Super App — and collect a physical card at a designated Orange Money Mastercard point of sale.

The adoption of these varied and alternative payment solutions is what is needed to drive further growth in the MENA VAS and telemedia market. By making it easier for consumers to pay for services, telecom operators can attract a wider range of customers and generate additional revenue. In addition, the development of a more robust payment ecosystem will help to boost the overall digital economy in the region.

This was very much the theme of World Telemedia - Exhibition, Conference & Networking in Marbella: how payments holds the key to driving users to VAS and to spending. In addition, there is a growing hunger –?especially among these younger consumers – for access to streaming, social and gaming content and having easy ways to pay (and for their parents to pay) is vital to cultivating this market.

This focus on MENA is just the start. With World Telemedia scheduled to take place in Dubai in May, it will be interesting to see just how this market can be further opened up and, more importantly, what lessons the wider telemedia market can learn from it.