Africa’s Fintech Frontier: Ericsson Targets 50% Market Share with Mobile Financial Services

Ericsson AB, renowned for its global stature in 5G networks, is quietly emerging as a significant player in mobile payments across the developing world.

Currently powering more than one in five mobile transactions globally, Ericsson’s software oversees over 400 million mobile wallet accounts in 24 countries, making it one of the largest white-label platforms worldwide.

The head of Ericsson’s Mobile Financial Services unit, Michael Wallis-Brown, emphasized the pivotal role Africa plays in their expansion strategy.

“We’re touching 10% of the market in Africa today, and we can get to 50%,” Wallis-Brown stated in an interview, outlining the enormous growth potential within the continent.

Despite operating somewhat under the radar, Ericsson’s aggressive expansion plan for its fintech arm envisions penetrating new markets, potentially including Europe and the United States.

Wallis-Brown, a fintech veteran with a background at Nokia Oyj and in the startup realm, refrained from disclosing revenue specifics but highlighted the platform’s capacity to provide basic financial services to individuals without access to traditional banking.

The platform not only facilitates fundamental financial transactions like withdrawals and transfers but also offers advanced services such as merchant and e-commerce payments, micro-lending, and insurance.

Ericsson recently extended its decade-long partnership with MTN Group Ltd, Africa’s largest mobile operator, with 63 million active subscribers already on the platform.

As the company embraces public cloud deployments, Wallis-Brown envisions exponential scalability for Ericsson’s mobile financial services.