Mobile operator MTN's launch of a mobile money transfer service between Rwanda and Uganda this week signifies an increased focus by telecoms operators on interoperability initiatives targeting Africa's mobile money services market.

This is according to global money transfer services provider WorldRemit who refers specifically to MTN Uganda's recent launch of a cross-border money transfer service between the East African country and its neighbour Rwanda.

The service allows customers in either country to transact via MTN mobile money wallet without the need to exchange currency. The only proviso is that the recipient has to be an MTN Uganda customer for the transaction to go through successfully.

WorldRemit says the GSMA has noted that international remittances is the mobile money industry's fastest growing service offering and "is helping to vastly reduce the costs of sending money abroad."

Alix Murphy, senior mobile analyst at WorldRemit, says, "Until recently, it was impossible to send remittances internationally to Mobile Money wallets. While the vast majority of services remain interoperable, MTN's latest announcement shows that telecoms operators increasingly recognise how interoperability is necessary to reap the full benefits of Mobile Money,"

"International remittances via mobile money are growing both in Africa and globally. There are now over 260 mobile money services worldwide with over 100 million active users. The mobile money interoperability initiatives that exist between telecoms operators remain intra-country or intra-continent, as most lack the underlying infrastructure for money transfers internationally across continents. Money transfer services such as WorldRemit act as a hub to connect these disparate systems and enable seamless money transfers from abroad directly into mobile money wallets at a fraction of the cost of the traditional money transfer industry."

WorldRemit says over 60% of international money transfers to Uganda go to mobile wallet services, and Ugandans abroad send home $994 million every year "the majority of which is still sent and collected at high-street agents and cash pick-up locations," Murphy adds.

"As soon as we began offering transfers to Mobile Money in Uganda it rapidly overtook all other receive options, including both cash pick-up and bank deposits, as the preferred option for sending money home."