eServGlobal expects mobile money consolidation

Richard Mathews, CEO of mobile service solution developer eServGlobal (ASX:ESV), believes the fragmented mobile money market is due for consolidation sooner rather than later

Mobile service solution vendor eServGlobal (ASX:ISS) expects consolidation in the mobile money industry in the short term.

In a letter to shareholders in the company's annual report, CEO Richard Mathews said the market for mobile money solutions was fragmented and with no clear leader.

“Following the heavy investments that have been made over the past five years by all sorts of companies in this space, we expect to see some consolidation occur in the shorter, rather than the longer term,” he said.

Analysts believe that there is a race to become a market leader of the relatively new segment, Mathews added.

eServGlobal has been concentrating on the mobile money business since it sold its USP pre-paid telecom billing platform to Oracle for $113.4 million.

Mathews said the company's priority for FY11 was to add more customers to the network of operators using its HomeSend international money transfer solution.

The company will also start discussions with mobile transfer organisations and banks to create an end-to-end service offering.

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