Vodafone Group PLC (VOD) has recently entered into an agreement with HybridPayTech, a unit of Canadian mobile payment technology company, Freeport Capital Inc. for offering machine-to-machine (M2M) solution for mobile payment service.
Vodafone’s M2M platform allows secured processing of credit and debit card payments globally using its network via smartphones or tablets. The service improves customer payment experience while offering new revenue generating opportunities.
We believe that the new contract with HybridPayTech will boost Vodafone’s enterprise business, which was re-structured into one unit after merging the Enterprise segment and Cable & Wireless Worldwide. Vodafone is also building upon its mobile financial services brand – M-Pesa – by undertaking development initiatives mostly in the African continent.
With respectively 18% and 14% market penetration in countries like Kenya and Tanzania, Vodafone foresees exponential businesses growth for M-Pesa in other African markets. In this regard, the company views India as a bankable target market with 700 million untapped customers in mobile financial services.
Further, to fortify its enterprise segment, the company also inked a multi-year contract with BAE Systems plc, which deals in defense, aerospace and security business to supply mobile communication worldwide. The agreement remains accretive to the company’s global enterprise customers while promoting its security products and services.
We believe Vodafone’s future growth hinges on key drivers like increasing mobile data services, growth in enterprise markets through converged fixed and mobile services (Vodafone One Net) as well as new pricing plans such as Vodafone Red. Further, growth in emerging markets including Eastern Europe, India and Africa and the popularity of machine-to-machine and near-field communications are supporting revenue accretion for the company.
More From Zacks.com