There is a US$60 billion airtime market, and that’s just airtime in Africa alone, by some estimates, by 2015 there is going to be $85 billion of prepaid airtime floating about. It’s a massive opportunity.
Movotek is introducing a new way of buying and selling airtime. It is a secure system of delivery, environmentally friendly, and hassle free as you can load airtime without scratching any papers, but just the prepaid airtime vouchers printed by the Movotek prepaid airtime machine. Movotek’s mobile prepaid airtime machine looks like a portable credit card machine. Its aim is to replace the scratch card as a method of buying prepaid airtime in Africa. The scratch card has really opened up the possibility to serve deeper and deeper into underserved markets. site name generator . And the mobile revolution in Africa wouldn’t happen without the scratch card. That was the best method available and that was kind of the benchmark we were trying to improve against.
There is a potential client that Movotek is in discussions with in Ghana that trades millions of these little scratch cards, and they don’t come cheap [to manufacture and distribute].
He added that by using Movotek’s device, informal entrepreneurs can sell airtime more efficiently, and cost effectively to their customers, allowing wider access to prepaid services.
Each device serves as a mini-business that empowers individuals to make a living or expand their existing micro-enterprise income. Movotek makes its profit by taking a small portion of the transaction amount margin and through the sale of each device (although these costs are often subsidized as Movotek introduces them to the market).
Serving the informal market
The airtime top up opportunity in targeting the informal market as massive.
“Even in South Africa, more people prefer to shop at informal trade outlets than the formal trade… I seem to recall there being about one to one and a half million informal market traders – street hawkers, spaza [informal] shop owners or people that work at spaza shops and shebeens – and that’s again a massive sector that for the most part is quite underserved, and this is in South Africa, again the most formalized of the economies. In the rest of Africa, it’s just that much bigger.
airtime top up