Mobile Money covers 16% population in sub-Saharan Africa (Africa)

Money transfer via mobile phones has expanded to 16 percent of the total population in sub-Saharan Africa, according to a new World Bank study, as reported by Mobile Money Africa. The Global Financial Inclusion Database, or Global Findex, has found only 3 percent of the population in the rest of the world take advantage of money transfers through mobile phones.

As per the report, in sub-Saharan Africa, take-up of mobile money services, pioneered by Kenya-based Safaricom’s M-Pesa service, has been boosted by the fact that traditional banking is hampered by transportation and other infrastructure problems.

A statement issued by World Bank claims that money transfers through mobile phones is a form of increasingly nontraditional banking that often doesn’t require users to travel or set up an account at a brick-and-mortar bank. Further, such mobile banking allows account holders to pay bills, make deposits or conduct other transactions via text messaging. Kenya, where 68 percent of adults report using a mobile phone for money transactions, has seen particularly impressive growth in this market.

As revealed in the report, said Asli Demirguc-Kunt, the Bank’s director of development policy and chief economist of the Finance and Private Sector Network, said that nearly two-thirds of the unbanked cite poverty as the obstacle to financial access, but about a third also blame the cost of opening and maintaining an account or the bank’s being too far away, which means long bus rides for many.

In markets like Uganda, mobile money transfer services have become a revenue generator, with players hotly competing for users as margins on voice services have been driven down over the years. MTN Uganda, for example, has more than 2 million registered customers after launching in March 2009. MTN reported recently that US$100 million gets transferred over the service every month.

The four mobile money offerings in Uganda including MTN Mobile Money, Airtel Money, Warid-Pesa and Uganda Telecom’s M-Sente are largely similar, allowing registered users to load money into their accounts, make transfers to other users, buy recharge vouchers as well as withdraw money.

MTN and UT bank offer ‘Mi-Life mobile insurance (Ghana)

Telecom operator MTN is offering users Mi-Life insurance services in collaborations with UT bank. According to reports, James Bukari, Commercial Manager of Sales, explained at the launch that MTN had realised several products like vehicle traffic devices, Mobile money and others to help their customers not to carry monies in their bags, and students not to walk far away for their school fees.

He said the insurance would help customers to prepare for the unexpected, as it allows every person to insure a loved one, which he said, would work through MTN mobile, where the person receives a confirmation by SMS message.

Bukari indicated that when two persons contribute $0.52 every month for over three, and the unfortunate thing happens, or one dies, $210 will be paid for the other partner as insurance, according to a report by MobileMoneyAfrica.

Furtehr, when they contribute $1 a month for over three months, $420 will be paid to the other person. He further noted that Mi-Life insurance provides money in the event of death of the subscriber or the next of kin.

As per the report, the premium payment for insurance will be deducted from the user’s MTN Mobile Money wallet once per month, while one receives an SMS of the deduction of the monthly premium as the insurance cover is renewed. According to him, once the premium is deducted, the insurance cover lasts for one month until the next monthly premium is deducted.

O2 launches mobile money wallet service (UK)

O2 announced the launch of O2 Wallet: a seamless and secure digital wallet service that will deliver the benefits of mobile money to more UK consumers than any other product or service currently available.

The O2 Wallet combines many functions. O2 Wallet enables consumers to securely transfer money to any UK mobile phone number as easily as sending a text. Money Messages allow consumers to make daily transfers of between $1.6 and $800; and will make lending, borrowing or repaying money to friends and family easier than ever.

O2 Wallet makes shopping via one’s mobile a breeze. A comprehensive barcode and search engine function compares the prices of millions of branded goods from more than 100 online retailers. In addition, consumers will enjoy unique daily discounts and deals via the ‘My Offers’ icon. At launch these will include discounts and money-off offers from retailers such as Debenhams, Comet, Sainsbury’s Direct, and Tesco Direct.

O2 Wallet enables consumers to digitise their existing debit and credit cards making it quick and easy to pay for things via their mobile. Customers can load money into their O2 Wallet account via one of their debit cards, by receiving a Money Message or with cash at more than 30,000 locations including O2 stores, PayPoint and epay retail outlets. O2 Wallet’s ‘transaction history’ helps consumers keep on top of their expenditure with texts alerts when the account balance changes; a 30-day payment history on the app; and a 12-month history online.

O2 Wallet offers both a physical and a virtual O2 Money Account Card. Both are based on a Visa prepaid account making them ideal for customers wanting to manage their finances as they can only spend what they put in. The ‘virtual’ O2 Money Visa Account Card is perfect for online shopping. Consumers can also apply for the physical O2 Money Visa Account Card to pay for things on the high street or withdraw cash from ATMs. This is a contactless card allowing tap-and-go payments at more than 100,000 contactless payment points across the UK; it’s fast, easy and convenient.

James Le Brocq, Managing Director at O2 Money, said that O2 Wallet delivers the benefits of mobile money to more UK consumers than any other product or service currently available. With O2 Wallet, it’s easier to transfer money, track expenditure and pay swiftly and securely, all using the mobile. He added that they believe it will transform the way people manage their finances and spend money.

Additional functionality will soon enable consumers to use O2 Wallet to top-up mobile airtime, and buy train tickets.

James also said that they recognise that security is absolutely key. O2 Wallet has been trialled internally for months and has undergone extensive ‘stress-testing’ with security experts. In additional to PINs and passwords, all personal details and financial data are held on remote central servers rather than on the mobile device itself. This, they believe, is the safest and most secure way to deliver mobile payment services.

Sandra Alzetta, Senior Vice President of Mobile at Visa Europe, added that they welcome the launch of O2 Wallet and are delighted to be enabling the m-commerce experience with a Visa prepaid card. The new service creates an easy and efficient online payment experience for mobile device users, supporting the continued growth of m-commerce in the UK, as well as encouraging contactless payments among those users who choose to take a physical card. This announcement is another step towards an integrated future where the way we pay reflects the full potential of these new technologies.

O2 Wallet is compatible with the majority of smartphones as well as iPads. Even those without a smartphone can use various features of O2 Wallet – for example Money Messages – providing they have web browsing capability on their handsets.

Mobile money services receive success in Africa (Africa)

The success of mobile banking services in Africa can be gauged by a report by FNB, highlighting a 150 per cent hike in transaction growth for its cellphone banking service and 1384 per cent growth for eWallet, for the month of December 2011 when compared to the previous December.

The report reveals that customers conducted 2.4 million cellphone banking transactions during December 2011 in Botswana, Namibia, Zambia, Swaziland and Lesotho, to the value of US$ 27.9 million as compared to US$ 128,485 transactions in December 2010.

Botswana, recorded over 1.3 million cellphone banking transactions, representing a 126 per cent increase year-on-year. Further, Namibia recorded year-on-year growth of 155 per cent, with Zambia at 308 per cent and Swaziland at 227 per cent.

As per the report, Ravesh Ramlakan, CEO, FNB Cellphone Banking Solutions, has said that the increasing confidence amongst consumers in using their handsets for money transcations have greatly aided in the adoption of mobile money services in the country. He added that innovation has played a key role in growing cellphone banking across Africa. Further, their ability to adapt the service for use on any cellphone has been an important driver of this growth.

Users can conduct a number of transactions using FNB Cellphone Banking, including transferring money between their own FNB accounts, buying prepaid airtime and making third party payments.

The report reveals that, FNB eWallet has generated 407,110 original sends in its four African Operations (Botswana, Swaziland, Lesotho and Zambia) as at the end of December 2011. In Botswana FNB eWallet, saw an increase in original sends of 1236 per cent year-on-year from December 2010 to December 2011.

Yolande van Wyk, CEO, FNB eWallet Solutions has said that although eWallet has only recently been introduced to markets outside South Africa, the service has demonstrated strong potential for continued growth into the future. He claims that a country like Zambia for example has 5.4 million mobile phone users and a large informal sector, making a solution such as eWallet ideal in helping bridge the financial services gap between the banked and the unbanked. eWallet reduces both risk and cost, and in African markets they have found this to be essential in any financial product offering. Simple, convenient and affordable financial services represent the future of banking in Africa.

eWallet allows FNB customers to send money to anyone within the borders of the country in which the service operates. The convenience lies in the fact that the recipient does not need to have a bank account. The money is transferred instantly and the recipient uses a pin code sent to their cellphone to access the cash from FNB ATMs.

Airtel‘s East – African e-money connection (East Africa)

As part of a business expansion, Bharti Airtel is aiming at East Africa as a potential market for growth.  Being functional in 16 African countries, Airtel is planning further expansion in an attempt to avail the benefits of increased trade in East Africa, due to the launch of the common market in 2010. The company opined that the e-money service will make the money transactions hassle free for businessmen by saving their time, usually wasted at bank queues.

The company is optimistic about its East African venture on the grounds of its partnerships with East African international and regional banks. Partnerships with financial institutions have enabled Airtel to work efficiently towards providing banking services, money transactions and payment of bills, among others.

Kick starting the business in Africa, Airtel launched its e-money service and mobile money platform in Uganda, allowing customers to withdraw cash through ATM’s. Airtel’s mobile money platform will serve various purposes like ATM transactions, airtime top ups, etc.

The company is planning to embark its presence in countries like Kenya, Tanzania, etc.  Including Airtel, there are almost four operators in the e-money business in East Africa. Thus, for a stronger foothold in the market, Airtel is aiming to launch the e-money transactions amongst Uganda and its neighbouring countries.

Indian Post Office launches mobile money service with BSNL (India)

The Indian Post Office has launched its own mobile money service in collaboration with BSNL (Bharat Sanchar Nigam Ltd) . According to reports, subscribers across all networks would be able to avail this service for a charge of 5 per cent.

As per sources, a user would give the post office the mobile number, address and amount of the receiver. Once the cash is deposited, the Post Office will send a unique code to both the sender and the receiver via a text message. The receiver simply needs to show the unique code to the Post Office to receive the money.

The highlight of such a scheme is that it does not require any additional expenditure from the user. Further, users with regular mobile phones can also avail this service as it is carried out through text messages.

Warid Telecom launches mobile money service (Uganda)

Mobile operator Warid Telecom has launched a mobile payment service titled Warid Pesa which will allow users to convert cash to electronic money and vice versa. As per company reports, users will be able to use the electronic money to pay for goods and services via their mobile phones.

According to reports, Warid Pesa also caters to the large unbanked population by enabling users to simply deposit money into their Warid Pesa account as well as transfer the electronic money to other mobile users who can re-convert the same to cash.

As per sources, Shailendra Naidu, Chief Commercial Officer, Warid Telecom has said that not only will this service provide users with another choice, but that it is also an easy, convenient and quick money transfer service across all networks.

Nokia launches new mobile money service (India, Finland)

Nokia, the Finland based handset maker, has reportedly launched its Nokia Money service across India enabling users to perform daily financial transactions via their mobile device. According to reports, a differentiating factor for this service is in its simplicity and convenience of use.

As per sources, users can avail Nokia’s Money service by simply registering with an authorized outlet and do not require the Know Your Customer (KYC) paperwork like in the case of most mobile money offerings. Further the service is available to all mobile users irrespective of the type of mobile used by them.

Reports also reveal that customers can perform the financial transactions via SMS and do not require an internet connection. With a large portion of the Indian population still unbanked, and the increasing penetration of mobile phones, Nokia’s new mobile money service is expected to take the m-payment industry by storm.

Etisalat launches mobile money services (Afghanistan)

Etisalat Afghanistan has reportedly launched Telepin Software’s mobile money service titled mHawala. According to reports, Etisalat Afghanistan is the first mobile network operator to offer complete mobile banking services as well as cross-border money transfers in the future.

As per sources, Vincent Kadar, CEO, Telepin has said that they understand transactions better than any general value-added services infrastructure vendor and apply this knowledge to forward-thinking operators such at Etisalat Afghanistan. He added that Etisalat is responding to the needs of its customers, and is delivering a best-in-class mobile money solution that will extend value to its mobile subscribers, merchant networks, and ecosystem partners.

 

Mobile payments to see major growth in coming years

With the increasing demand for mobile payment services, mobile operators along with big companies such as Google, Visa and PayPal are reportedly working towards establishing themselves in this market. According to reports, mobile operators in the US, AT&T, Verizon Wireless and T-Mobile are spending large amounts of money in an attempt to strengthen their foothold in the mobile money market.

Further, sources claim that while Google launched its mobile wallet service in the US this year, enabling consumers to use a NFC (Near Field Communications) enabled handset to make payments; Visa and PayPal are expected to offer their services by the next year.

As reported by Wireless Federation earlier, Spanish mobile giant Telefonica announced the trial of its mobile wallet service, in collaboration with BlackBerry maker Research In Motion (RIM). Further, industry analysts believe that in the next five years, mobile payments are going to become the norm and may replace a large part of the traditional payment methods.