Nearshore Americas

Mahindra Comviva, Sonda Team Up to Explore LatAm’s Mobile Money Market

Mahindra Comviva, a subsidiary of India’s IT services firm Tech Mahindra, has teamed up with Chile’s Sonda IT to capitalize on the the growing demand for mobility and data analytics solutions in Latin America.

Under the agreement, Sonda will provide implementation and systems integration support to Mahindra Comviva across ten Latin American countries. The Indian firm, whose number of mobile money subscribers in the region grew a record 170 percent, is aiming to see a 300 percent growth in revenue over the next three years.

Mahindra’s expansion comes in the backdrop of recent Ovum’s report, which found a huge demand for analytics in Latin America’s telecom market. Owing to the intensive and expensive process of collating data from multiple sources, integrating data is posing a huge challenge for telcos. On average, 11% of the marketing budgets are allocated to advanced analytics tools such as data mining and predictive analytics, says the report that was sponsored by Mahindra.

But in Latin America, Comviva is largely focusing on financial technology solutions. It has often claimed that it holds an 11 per cent of Latin America’s mobile money market. Many people in Latin America do not have a bank account, but in countries like Brazil, everyone seems to own a mobile phone. Therefore, Mahindra appears confident that mobile wallet will be a huge hit in the region.

Among its popular solutions is mobiquity, with which merchants and shopkeepers can carry out financial transaction over mobile phones, without cash or plastic cards. Reports say Mahindra controls 25 percent of the global mobile money market.

The company has similar partnerships in El Salvador, Guatemala, Honduras, Bolivia, Colombia, Paraguay, Guyana, Curacao and Peru. Mahindra’s mobile wallet and payments solutions are a hit with Africans.

According to GSMA, LAC witnessed a 50 percent growth rate in the number of new registered mobile money accounts between December 2013 and 2014, becoming the world’s fastest growing region in new accounts.

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Raúl Véjar, CEO of Sonda IT, stated that mobility systems and solutions are key to competing efficiently in this massively digital era, where data analysis, management, interoperability and security are essential aspects.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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