MovilRed/Tranza in Colombia (Model 7: use shared agent network)

by Ignacio Mas and Mike McCaffrey
Jun 17, 2015
1 min

All banks offer Tranza a line of credit to finance the float account that Tranza must maintain with them. As the bank agency business has grown, Tranza now finds itself occasionally hitting the overall credit ceiling that a bank´s risk department sets for individual borrowers. From the beginning it sought to become a multi-bank network, and refused to grant exclusivity to any bank.

The Solidda group in Colombia originated as a prepaid airtime distribution network, which originally used scratch cards and then started using electronic vouchers. It has aggregated 60,000 retail outlets selling airtime under the MovilRed brand. In 2011, Solidda saw the opportunity to extend its service range by offering cash and electronic services for banks under the agency model, and set up a separate company called Tranza S.A.S. for this purpose. From the beginning it sought to become a multi-bank network, and refused to grant exclusivity to any bank. To read through the case study, please click here.