Three South African mobile operators – Cell C, MTN, and Telkom – have become new members of the GSMA’s Open Gateway initiative. This step is an effort to counter fraud and digital identity theft that has been rising over the years.
The GSMA Open Gateway forms a network of application programme interfaces (APIs) that has been constructed in conjunction with mobile operators across the globe. The main objective is to offer developers universal access to different operator networks.
As active participants in this initiative, the GSMA stated that the South African telecom companies will be able to carry out number verification and SIM swaps by leveraging the two universal network APIs. This standardization of APIs will facilitate local developers to work on number verification and SIM swaps.
Interestingly, there has been a significant 24% rise in reported digital banking fraud cases in South Africa in the year 2022, as revealed in the report released by the South African Banking Risk Information Centre last year.
The telecom industry body argues that standardizing APIs by mobile network operators (MNOs) is an effective way to reduce such risks. The MNOs are in a strong position to improve security measures within banking applications and online platforms by exploiting their existing infrastructure and technical expertise. They can also bring fraud detection and prevention mechanisms into action.
Angela Wamola, Head of Sub-Saharan Africa at the GSMA, has expressed that mobile network operators could serve as strategic partners for developers, helping banks, financial institutions, and commerce providers to mitigate the rising issue of banking fraud in South Africa and protect their clients.
The availability of the two APIs to South African operators will provide businesses with additional resources for verifying the identity of their customers, thereby protecting them from identity theft while preserving user experience. GSMA’s Open Gateway supports developers with unified integration that functions across operators.
An initiative launched at MWC Barcelona in 2023 amplifies interoperability between operators, industry associations, developers, and content creators, while conforming to all essential technical standards, regulations, and user privacy standards.
According to the GSMA, the initiative already includes 42 mobile operator groups globally – representing 237 mobile networks and accounting for 65% of worldwide connections – from countries as diverse as South Africa, Norway, Brazil, and New Zealand.
These APIs safeguard 100% privacy and will be beneficial across various sectors, including banking, finance, insurance, and retail.
Cell C CEO Jorge Mendes stresses the importance of collective effort in creating a collaborative ecosystem that prioritizes consumer protection. Saad Syed, CEO of Chenosis, which is part of the MTN Group, welcomes the collaboration with other mobile network operators to provide a standardised, consistent experience for developers consuming the services.
On the other hand, Lunga Siyo, CEO of Telkom Consumer and Small Business, highlights the impact of digital fraud on trust in the digital economy, expressing enthusiasm about partnering with the GSMA to eliminate existing vulnerabilities.
