One example is our Mobile Financial Services (MFS). These include, for example, money transfer, purchasing, payment and balance checking via a mobile handset. The popularity of these services continued to rise in 2010 and we now have over 50 customers worldwide.

Gemalto MFS meet the highest security standards. And, because they work on all devices, our services do not limit the consumers who can use them. This is particularly important in emerging economies, where most handsets are basic models.

Our MFS expertise means Gemalto is playing a key role in expanding digital democracy. Opening up financial services to anyone with a handset extends important life choices. This is especially significant for the five billion people worldwide without a bank account.

In February 2010 we strengthened our MFS offering with the acquisition of Valimo, a world leader in mobile authentication. Valimo enables mobile phone users to sign digital documents securely by entering a password or PIN code.

This acquisition is now translating into new business. For example, in 2010 MTN Middle-East and North Africa chose Gemalto’s LinqUs security solution to launch MFS in five countries. Together they represent a potential market of 30 million people.

And it’s a market that is likely to expand. Active users of mobile money services are predicted to double in the next two years – exceeding 200 million by 2013. It’s estimated that nearly 40% of active users by 2015 will be in the Africa and Middle East region.

 

Mobile money by cellphone offers small businesses access to the global village. It also acts as a stepping stone to more formal financial services. Kenya’s “M-Pesa” service is one example. More than seven million Kenyans use M-Pesa for bills and other payments, to send and receive money and manage bank accounts. One recent study shows that the income of M-Pesa households has increased by between 5% and 30% since they started using it. And because these non-interest, secure accounts also encourage saving, they offer easier access to medical treatment. 

In countries such as Tanzania and South Africa, innovative “no account needed” mobile services and “top-up” debit cards are also transforming how people send, receive and spend money.

Gemalto secure digital services are also improving African lives in countless other ways:

• Storm warnings by SMS are protecting fishermen on Lake Victoria in East Africa;
• SMS messaging is reminding patients about their visits to HIV clinics and delivering test results;
• ePassports in Nigeria, South Africa , Senegal and the Ivory Coast are protecting people from identity theft and making it easier to complete transactions;
• eHealth cards in Gabon are improving access to healthcare and health insurance systems.

With the development of sustainable solar-powered cellphones, digital technology looks set to bring even more benefits to African economies and communities.