Blue Label’s core business is the virtual distribution of secure electronic tokens of value (predominantly prepaid airtime at present) and transactional services across its global footprint of touch points.
The group’s stated strategy is to extend its global footprint of touch points, both organically and acquisitively, to fulfil the significant demand for the delivery of multiple prepaid products and services through a single distributor, across various delivery mechanisms and via numerous merchants or vendors.
Why do consumers use prepaid products and services?
How does Blue Label Telecoms add value?
- Prepaid products and services are the ultimate budgeting tool, as consumers have absolute choice and control over what they spend;
- The majority of prepaid transactions are cash based and using prepaid as a payment mechanism eliminates the requirement for credit checks;
- Prepaid products and services can be conveniently topped up, either virtually or physically as and when required by consumers;
- Prepaid products and services are sold across a broad footprint of traditional and non-traditional outlets; and
- Prepaid products and services enable the world’s unbanked consumers to transact efficiently.
|Within emerging and developing economies, the supply of products and services via prepaid channels is becoming an increasingly significant distribution model. This is because the distribution of physical product is often logistically difficult, a significant portion of the consumers within these markets are unbanked/badly banked and therefore transact in cash, and many do not qualify for credit. Although they are unbanked/badly banked and don’t qualify for credit, these consumers have cash and are now demanding equal access to first world products and services, such as insurance.
The group’s ability to develop and distribute innovative prepaid products and services through its global footprint of touch points has allowed it to “take” first world products and services to these consumers and bridge the “access” gap.
In essence, Blue Label is able to enhance the consumers’ ability to transact conveniently, affordably and with greater accessibility and choice.