Music streamers team with Africa mobile firms to extend their reach

A trader is reflected in a computer screen displaying the Spotify brand on the floor of the New York Stock Exchange in New York, US, in this April 3 2018 file photo. Picture: REUTERS/LUCAS JACKSONAfrica, with its internationally recognised musical talent — and growing mobile phone use — is central to Swedish music streamer Spotify’s plans to extend its reach to a billion customers.

Phiona Okumu, Spotify’s head of music for Sub-Saharan Africa, told Reuters the company secured “alternative payment methods”, namely M-Pesa, when it moved into Kenya in February. Costs associated with opening bank accounts, the distance to financial institutions and the difficulty in meeting “Know Your Customers” requirements because of inadequate proof of address have added to the appeal of using phones to pay.

Such partnerships are based on telecom providers selling music bundles that give customers access to a streaming company’s premium service and exclusively-curated music mixes.

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