When Tranglo started as a fintech in 2008, international airtime transfer was the topic. However, the proliferation of digital payments technology in the years since means airtime recharge has taken a backseat; it accounted for just 1.2% of the USD1 trillion mobile money market in 2021.
Airtime is money
However, international airtime transfer is still growing modestly. According to a GSMA report, airtime recorded USD12 billion in 2021, an increase of 21% YOY. That is not an insignificant amount. It shows that there is a niche market for airtime recharge.
Airtime is attractive to consumers and service providers in developing countries because of its simplicity and high margins. For example, international airtime transfer accounted for less than 5% of Tranglo’s processing value in 2021. Yet, it remains a significant profit contributor to Tranglo.
Airtime transfer retains a unique position among the unbanked because they are accustomed to “topping up” or “recharging” their mobile credits. Airtime is also the simplest and fastest way to transfer small amounts. With 1.4 billion people still unbanked, airtime remains viable in certain parts of the world.
The World Bank and other financial bodies have noted airtime's crucial role in driving financial inclusion. Often used for bill payments or groceries, airtime is money in countries where formal banking services are limited.
Types of international airtime transfer providers
- Mobile operators - Usually integrated into the customer’s existing mobile account, these telcos are the most direct providers, making it easy and convenient.
- Third-party providers - Online platforms and mobile apps, such as TreatsUp, also offer international airtime transfer services. These services may often be more affordable than mobile operators as they operate a wholesale model and offer more flexible payment options.
- Joint ventures - Some non-bank players, such as money transfer operators, have formed partnerships with other financial institutions or airtime solution providers. They are often more cost-effective than those offered by traditional banks and the airtime recharge option complements their wider money transfer offerings.
Getting more airtime
International airtime transfer services like Tranglo Recharge have seen a rebound in popularity as more businesses and consumers realise the importance of alternative payments. Given its latest trajectory and resilience, we remain optimistic about airtime.
Keen to get into the international airtime transfer market? Are you already offering airtime recharges but need a better alternative? Speak to us and upgrade to the widest global airtime network.
