The Missed Asset In Telecom

A Missed Opportunity in the Evolution of Mobile Payments

Imagine using your phone to navigate to a shopping centre, purchase a product (let’s say a mobile phone), and pay for it seamlessly with the NFC feature on your device. This was the dream, the use case of the future envisioned by telecom operators and device manufacturers two decades ago. Back then, operators even piloted this concept, striving to integrate payments, connectivity, and convenience into a single ecosystem.

But who delivered this vision? Not the operators.

It was Apple, with the execution of Apple Pay, that brought this idea to life and reshaped global commerce.

The Untapped Asset: Prepaid Balance as Digital Wallet

For telecom operators, the potential to revolutionise payments was within reach. In prepaid markets, operators had something extraordinary—a built-in digital wallet. Millions of users routinely loaded money into their accounts to purchase products and services, creating a robust ecosystem of stored value. It was sticky, engaging, and could have offered unparalleled potential to syndicate payments beyond airtime and data. Much like mobile money in Africa. Or Apple Pay today.

Yet, instead of harnessing this asset, many operators left it underutilised, failing to recognise the broader potential of prepaid balance.

A Shift in Focus: Walking Away from the Wallet

Rather than capitalising on their unique position, operators have pivoted toward rigid, inflexible models. Instead of encouraging users to top up their prepaid balance and discover new products or services, they’ve pushed consumers into buying predefined monthly data bundles. Often via credit cards or external payment systems like Apple Pay.

Even more baffling, these bundles are often sold as physical products in corner shops, especially in markets with low credit card penetration. The prepaid account—once a gateway to digital engagement—has been reduced to a static transaction. What was once a flexible, user-driven model now limits exploration, reduces engagement, and accelerates churn.

The consequences of this shift are significant:

• Reduced Flexibility: Consumers lose the ability to discover and purchase products dynamically.
• Declining Digitalisation: With no prepaid balance to manage, users engage less frequently with operator apps and services.
• Higher Churn: Users without money tied to their accounts have fewer incentives to stay loyal, and operators lose out on multi-SIM device usage.

What’s being marketed as conventional wisdom—by industry consultants and the broader telecom ecosystem—is, in fact, folly.

Learning from Apple Pay and Fintech

Consider Apple Pay. It now accounts for nearly a third of global digital payments, offering consumers seamless, frictionless transactions through their iPhones or Apple Watches. Apple took the vision that operators once had and perfected it, integrating payment into everyday life, both online and offline.

Or take a look at the burgeoning FinTech, which has grown rapidly to address the need for easy, accessible payment solutions. Many of their use cases could have been realised with prepaid balance, had operators recognised and acted on their advantage.

A Call to Action: Don’t Abandon the Wallet

We’re not saying operators should compete directly with Apple, Google, or FinTech. But the question remains: Why abandon the wallet? The prepaid balance is one of the most underutilised assets in the telecom industry today. It holds the key to higher customer lifetime value, reduced churn, and greater consumer loyalty.

CSPs and DSPs selling products on apps need in-app payment - let alone operators who fantasise of superapps - to sell all kinds of digital products and services directly. Building a new mobile money ecosystem or integrating external wallets is expensive and redundant when the foundation already exists within prepaid balance.

By leveraging this existing asset, operators can

• Drive higher consumer engagement.
• Sell flexibly their services
• Have better cash position
• Grow consumer lifetime and drop churn significantly
• Maintain ownership of the customer relationship in an increasingly competitive digital landscape.

Conclusion: Fight the Conventional Wisdom

It’s time to challenge the industry norms and reclaim what has been lost. The prepaid balance isn’t just an old relic; it’s a powerful tool for future growth. By using prepaid balance and use it wider as a digital wallet, operators can revitalise their consumer offerings, increase loyalty, and unlock untapped revenue streams.

Let’s have a conversation about how you can make this happen. And how to offer products consumer love, and share to their friends and family - capitalising prepaid balance.

Reach out to us today, and let’s help you turn your unused asset into your biggest opportunity.

‍