Pending new electronic payment service regulations have prompted Orange Botswana to assimilate Orange Money as a subsidiary.
The new reserve bank regulations, enforced by the Bank of Botswana, will govern the licensing and operations of electronic payment service providers in the country.
In addition to technology system specifications, including the use of fraud monitoring tools and interoperability with other payment infrastructure systems, the regulations stipulate that licensees must establish effective, transparent and adequate government arrangements, “which include keeping of electronic payments services, as a separate business unit from the business units of the licensee.”
In response Orange Botswana has announced the restructure and on-boarding of Orange Money, which will also heighten the Group’s Fintech market ambitions.
Orange Money CEO Seabelo Pilane confirmed the plan and said, “We are currently engaged in an internal transformation project to complete the separation of the telco and mobile financial services operations.”
With ten years of operating in Botswana, Orange Money’s active user base exceeds 30% of the country’s addressable market. The company’s Orange Money Visa Card was launched in 2013 and has an active user base in excess of 230 000.
Orange has also linked up with other international money transfer services and service providers including EcoCash, Airtel Money, MTN and M-Pesa.M-Pesa, MTN and Airtel.
Outside the telecommunications industry, Orange Money has a relationship with money transfer operator, Master Remit of Australia and is in the process of collaborating with Western Union and Ria Money.