Microfinance Focus, August 25, 2011: South African bank ABSA and Vodacom have signed a contract worth €77.5 million to offer their customers the chance to use ABSA's mobile banking services free of charge, Making Finance Work for Africa reports.

The new alliance allows South African customers to access their bank accounts online without having airtime on their handsets. Users will now be able to request mini statements, buy airtime and electricity as well as make CashSend payments through the bank's ATMs, even if they do not have credit on their phone or cannot use it to access the internet.

Both companies are working on a 'tap and go' payment system which should allow, in the future, mobile phones to be used to pay for transactions as an alternative to cards and cash.