Tagattitude-owned mobile banking service company, TagPay, has secured a US$1 million investment from French bank Société Générale in return for 8% stake in the company.

The investment will help to develop mobile banking in Africa and reinforce the Bank's expansion across the continent, according to Alexandre Maymat, Societe Generale's Head of the Africa/Asia/Mediterranean Basin & Overseas region, International Banking and Financial Services.

The investment comes on the heels of Société Générale's move towards adopting a mobile banking system – an important step in boosting its business in the continent, amidst rising infrastructure costs.

TagPay was launched in 2005. The company has developed a mobile payment solution which is independent of telecom operators and is being used by financial institutions in fifteen African countries.

The platform is based on cloud computing and allows consumers to check balance statements, transfer money, and pay bills using their mobile phones, irrespective of network operators or OEMs.

Didier Valet, Societe Generale's Head of Global Banking & Investor Solutions, described TagPay as central to its new digital strategy for Africa and the company is already testing the service in Senegal and the Ivory Coast.

"This acceleration in the digital transition reflects the growing trend in interconnection of individuals and systems that affects all of the Bank's activities. That means we must reinvent our interactive client interface and the way we design services, while guaranteeing the security and confidentiality of our data," said Valet.

TagPay CEO, Yves Eonnet affirmed that the investment would aid Societe Generale's expansion plans.

He added that it took the bank 15 months to establish its unit in Togo, but with TagPay, it could be done within three months. "We are sure that the future of payment would be the mobile phone and not cards."