Mobile Money Africa

Lagos, Nigeria: Indications have emerged that Nigeria banks have moved against the quest of  MTN Nigeria and Zain to obtain M-Banking license operations from the Central Bank of Nigeria (CBN). The regulatory body has only issued one mobile banking operating license to MoneyBoxAfrica to deplore branchless banking services across the country.

However, efforts by MTN Nigeria and Zain to secure the same license have been rebuffed by CBN. Finacialtechnology learnt that the refusal of the apex bank to grant the Mobile Network Operators (MNOs) the license is as a result of Nigeria banks antagonistic to the idea.

Sources at the apex bank say the banks are wary of the implications of allowing non-financial institutions with vibrant brands and deep wallets to venture in financial services industry. “They don’t want to be caught unawares like Kenya banks were with M-Pesa M-Payment system, which is powered by Safaricom, the leading MNO in the country”, he quipped.

As a result, CBN may have stopped the issuance of M-Banking license to these MNOs until it put a guideline in place that governs the introduction of branchless banking in Nigeria. It would be recalled that the apex bank recently circulate draft guidelines on branchless banking in the country, seeking for contributions from all the stakeholders. This development is a major setback for MTN’s and Zain’s plans to establish a-pan African M-Payment system across all their countries of operations.

MTN M-Banking business development executive, Dave Parratt, in December 2008 told Financialtechnology that the mobile telecommunications giant will provide M-Banking services across its operations in Africa. According to Parratt, the solution from MTN will differ from those already available, because it will not require any physical infrastructure, but rather a network of rural distributors which already exists.

Source: Financial Technology Magazine

mpesa

Olga Morawczynski is a doctoral candidate at the University of Edinburgh and a co-author with Mark Pickens of a forthcoming CGAP Focus Note on M-PESA. She has spent more than a year investigating customer adoption and usage in both urban and rural Kenya.

Martin is a shoe-maker in Kibera, an informal settlement outside central Nairobi. He has set up a small stall along Kibera drive, the main entry point into the informal settlement. From this stall, he sells and repairs shoes to earn his “daily bread”. Martin lives alone in Kibera. His two wives and eight children live in his rural home, which is located in Western Kenya.  Martin explains that a large segment of his earnings is sent “back home” to his family. He continues that he usually transfers money on a weekly, or bi-weekly, basis.  He then holds up his mobile phone and explains that he always uses M-PESA to make such transfers.

During the fourteen months I spent in the field studying M-PESA usage, I met many entrepreneurs like Martin. Usually, these entrepreneurs lived and worked in Kibera and supported their family in rural Kenya. Many of them claimed that they would use M-PESA to send money home “regularly”. Others added that they would also use M-PESA for the storage of their money. To understand usage patterns in more detail, I handed out financial diaries to fourteen M-PESA users. In these diaries, I asked the participants in record anytime that money came into, and left their hands. They were asked to keep such records for the period of one month. Martin was one of the participants. An example of a day’s entry is given below:
Several interesting findings emerged from Martin’s diary. The first is related to the frequency of remittances. During the month that Martin had the diary, he sent money home five times. Three of these transfers were made to his wife, and two to his mother. The average value of each transfer was just over 1300 KES.  These money transfers constituted a substantial portion of Martin’s income. A quarter of his total earnings (money-in) was remitted back to his rural home.

Martin also used M-PESA for the storage of his money. The diary revealed that 41% of Martin’s income was at one point stored in M-PESA. During the month, Martin deposited money into his M-PESA account fifteen times. Martin did not have a bank account. As there were no formal financial institutions within Kibera, Martin would have to leave the informal settlement to access banking services. Martin continued that it was difficult for him to make such a trip. He would need to shut down his business for the time that he was out of Kibera.

Another interesting finding, related to non-usage, emerged from the diary. Martin was not using the application for business transactions. That is, he was not collecting payments via M-PESA from customers. He was also not using the application to pay suppliers. Martin explained that his customers did not want to pay with M-PESA because it was too expensive. It would cost the customers an additional 30 KES just to make the transfer via M-PESA. Martin usually charged 100 KES for the repair of shoes. This was a significant portion of the transaction cost. Martin further explained that his suppliers were located in Kibera. He would pay them in cash as he picked-up his materials.

Many of the findings revealed here also emerged in the diaries of the other participants. For example, nearly all of the participants made frequent transfers back to their rural homes. They used M-PESA exclusively to do so. A forthcoming CGAP publication, which I co-authored with Mark Pickens, will describe such findings in more detail. It will also make clear some of the impacts that were generated through usage.  As we argue in the report, users like Martin have experienced some substantial changes in their financial habits since adopting the application.

Source:CGAP

Micro Finance Institutions in Nigeria though still struggling to get a piece of the pie from stronger and more capitalized commercial Banks, but still  coming up with  impressive returns in the last few years. More than 840 MFI’s are currently operating in the Nigerian market space while many others are getting ready to open to public in the next few months.

Some viable MFI’s are posting results that are close to what  established commercial Banks with over 50 Branch networks were earning before the pre – consolidation era when they had to increase their capital Base.

Virtual Banking and Mobile banking will give massive leverage to the commercial Banks in the next few months and this will massively differentiate them further from the MFI’s and widen the gap. In the evolving scenario, what opportunities are open to the MFI’s? Can they take on the Mobile channel as a strategic channel to play catch up? Will the Banks just use them as a  cash in / cash out points for their Mobile money roll out plans?

From the regulatory point of view, MFI’s are allowed to play in mobile landscape but  Infrastructurally, they are limited by their access to technology platforms like the financial switches. They still not directly connected and will have to get connection via a third party Bank.
Mobile Banking and mobile money is the easiest route to go for any growth oriented MFI in Nigeria with wide disparate demographics and prohibitive cost for Brick and mortar Branch roll outs. Mobile presents a strong compelling advantage for the MFI’s.
Though the Mobile is an unfamiliar terrain for most operators in the financial services sector but opportunities abound. The question is, what is out there.

64 million mobiles subscribers is a significant and potential customers base that can be engaged using the mobile channel.Network coverage is nearing 70 percent of total landmass in Nigeria, an extensive reach is what the Mobile channel offers. Mobile Phones is also what they already have with negative acquisition cost to enable potential customers use the service.

Using Mobile Phones, the MFI’s can develop independent collection points, therefore cash in / cash points using the Human Atm models across areas of operations and in concentrated commercial areas like the Major markets  without a need to physically have a Brick and Mortar presence.

Increase the market penetration by serving the currently unbanked population leveraging on their Mobile and Network coverage to bring services to these group of financially excluded  at a significantly lower cost to the customer and less paper work which is always a barrier for many semi Illiterate and illiterate citizens which mostly constitute the majority of the financially excluded.

Getting more products to the existing customers is a way to retain and keep customers. Many other products can be bundled into the mobile service provisioning of the MFI’s to make it more attractive to existing customers.

Remittance business which has been the cash cow of commercial banks are areas where the MFI’s can change the business models. Online remittance gives them the reach to the potential senders; worldwide while the Mobile Phone of the local receiver is the connection point of engage for the MFI’s.

To save cost and achieve competitiveness in the face of  biting Global  Cash crunch  and in local operating environments in Nigeria, Virtual and Mobile Banking is not a question when for the MFI’s, It is a question of How.

Efina

Worldwide, Innovation drives developmental efforts which translates into National development and prosperity. Innovations increases National GDP growth by many points. In face of global economic recession, the answer remains, getting local solutions to local challenges.

Countries that had successful scaled the Innovation Challenge hurdle are better off for it with strong internal capacities and exportable potentials in terms of  products and services. In countries like India, Bangalore ICT innovation city, though government promoted, had clearly demonstrated that with focused and purposeful pursuit, Innovation can be a chief driver of National development.

Innovation funds helps countries to quickly scale up, small scale innovations to large scale offerings, aimed at the whole population and with possible export potentials. We had seen small Individually promoted Financial inclusion services aimed at Unbanked growing from small  firms to multinationals even in Africa, Wizzit of  South Africa is a classic an example. They are quickly moving into many parts of Africa now.

Innovation had never been focused on improving financial inclusion in Nigeria, though we had seen some government attempts in the past to promote innovations in some sectors like manufacturing and export sectors but it met with little or no measurable success. The Efina Innovation fund is private sector targeted and primarily aimed at deepening the financial inclusion for millions of financially excluded Nigerians which currently constitute more than 70 percent of the National population figures.

No country can achieve development with significant percentage of its population still keeping their money ‘under the Pillow’. The aim of Innovation is to promote tailor made solutions that will address their specific needs in their environment, using technologies that are available.

For the first time in the History of Nigeria, Innovators who had been left behind are now opportuned to tap into capital after meeting the criteria for assessing the funds. Innovators are not in short supply in Nigeria but they face significant hurdle in assessing funds that will take them to market faster and profitably. Average innovator in Nigeria spends average four years to get to the market since Banks hardly finance start ups or knowledge based Innovations.

Now the chances for success are more now with advisory services, Business plans and useful market data now available locally for use by fund seeking innovators.

Efina’s strong showing at the Aitec’s West Africa Banking and Payment event 2009, clearly points the way forward for potential Innovators and with purposeful leadership of  the CEO,Modupe Ladipo and the support of the DFID,CGAP and Bill and Melinda Gates foundation and other International donor partner groups, The good times are here.
Efina’s move has finally opened the frontiers for Research and development that has been a barrier to Innovations and hopefully, other private sector lead Innovation funds will emerge once Efina’s program’s proves that the only way, is upward movement for Nigerian Innovators.

Mobile Money Fundamentals Training – MMF 101
March 10th,2010
Victoria Crown Plaza Hotel
Ajose Adeogun Street,Victoria Island – Lagos
Emmanuel@mobilemoneyafrica.com / 2348030818868

Mobile Money Working Tour
May 2010
Ghana / Sierra Leone
emmanuel@mobilemoneyafrica.com

Cards Africa 2010
15-19 March 2010
Venue: Sandton Convention Centre – Johannesburg

Mobile Commerce World Africa 2010
18 March 2010
Venue: Sandton Convention Centre – Johannesburg

Prepaid Cards Africa 2010
15 March 2010
Venue: Sandton Convention Centre – Johannesburg

Mobile Money Middle East 2010

March 28 – 31, 2010
Dubai, UAE
http://www.mobile-moneyme.com/Event.aspx?id=246182

AITEC Banking & Mobile Payments
West Africa,
Lagos, 11-12 May 2010
http://www.aitecafrica.com/event/view/46

SatCom Africa 2010
12-15 April 2010
Venue: Sandton Convention Centre – Johannesburg, South Africa

SatCom Star Awards
13 April 2010
Venue: Sandton Sun Hotel – Johannesburg

Banking Outlook Africa 2010
19-23 July 2010
Venue: Sandton Convention Centre – Johannesburg

The Internet Show Africa
2-3 August 2010
Venue: Sandton Convention Centre – Johannesburg

Barry

Over View
iVeri creates technology for banks and businesses to facilitate multiple-channel transaction acceptance.  Our goal is to help our customers create a profitable and sustainable business by enabling them to implement the right transactional channels for their market environment.

We have been developing electronic payment technology since 1998.  Today, we process millions of transactions and have customers in several countries. iVeri is a proven provider of best-of-breed multiple channel transaction
technology.

MMA: Iveri’s platform works on a combo of channels and what are your experiences so far on the mobile channel?

Coetzee : Channels for transactions are determined by the infrastructure being used. So for the “mobile channel” we would include transactions by SMS, USSD, WAP and IVR. Each of these channels have their own unique characteristics which affect how they are used for financial transactions. SMS is by far the most widely used. This is because it is well established and well understood. However for financial transactions it is probably the worst channel from a reliability and security point of view. USSD is probably going to be the channel of choice going forward. However, the mobile operators are slow in deploying this channel. They seem to prefer rolling out the much more expensive 3G technology, which although it is great, unfortunately is not available on the majority of handsets in most countries. iVeri’s attitude to channels is simple. We will support all possible channels. In this way each financial business using our technology is able to choose their preferred channel based on the infrastructure available to them.

MMA: African Financial Institutions are still attached to the old norm of ‘p2p personal Banking’.How is Iveri changing the pattern.

Coetzee: Banking has survived many technology waves. Mobile is another technology wave. Banks are risk averse and as such will naturally not be leaders in innovation. iVeri, with its established record of reliability is a known factor to banks and as such reduces their risk in using new technologies.

MMA: What are the key differentiators of your solutions to competition’s.

Coetzee: Mobile transacting is already a commoditised product. All vendors generally offer the same product set. Transfer, Bill Payment, Wallet, Top Up. Vendors really only compete on price and service. iVeri is always aggressive on pricing. Probably our biggest differentiator is our experience. When you deploy new technology, you want to be sure the party you are working with is reliable. iVeri has a reliable track record.

MMA: With your focus on Africa,is time ripe to use technology extensively as a mean of customer engagement in Africa.

Coetzee: Developing markets are moving away from developed markets because the mobile handset is our technology of choice, whereas in developed markets it is the PC. We are committed to driving this move. We are only focused on providing customer centric solutions to African financial institutions. Only when we have exhausted this avenue will we look elsewhere. You have to look after your home and family before you try to look after others.

MMA: With widespread footprints in Africa,what are your views on regulations.Is it catching up with Innovations.

Coetzee: African regulators are generally re-active as opposed to pro-active. They allow the innovators to enter and create a market and then they decide how to regulate this. Although this sounds like a good way of doing things, the results are actually mostly not advantageous to the country. Re-active regulation always has to incorporate the incumbents even though they might not be good for the country. An example of this is in Kenya where any new regulation would have to incorporate MPesa, regardless of whether that was good for the country or not. India, on the other hand has a pro-active regulator who decides on what rules best for the country up front. This creates a level playing field where all players (not just the big ones) are playing to known set of rules. I would like to see African regulators being a lot more pro-active with their regulation.

MMA: What does the future hold for Africa using innovative platforms like Iveri

Coetzee:The future is just starting for electronic payments in Africa. iVeri is a dedicated payment solution provider that is made in Africa for Africa. I think the future is very bright.

MMA: In coming years,what should Africans watch out for in the Mobile money landscape.
Coetzee: Security. At the moment convenience is driving the Mobile Money wave. However, sooner or later the crooks are going to move in. The emphasis will then quickly shift to security. This is going to be very tough as the technology currently being used is not easy to secure while maintaining all the convenience. There will be a clash between increasing security and reducing convenience.

MMA:  How do you intend to engage millions of Unbanked Africans?

Coetzee: The example to follow here is the huge success in the deployment of mobile networks and handsets. In reality the technology is very advanced and complex. However, it has been packaged and marketed in such a way that most people use it without a second thought. We strive to make our products and services follow this example. Our success will be measured by our footprint.

To contact iVeri:

Barry Coetzee
www.iveri.com
info@iveri.com
http://twitter.com/iveri
http://www.facebook.com/pages/iVeri/59310882690
http://www.linkedin.com/companies/242993

Wizzit:  Your Bank in your Pocket

Wizzit is a bank operating as a division of The South African Bank of Athens Limited aimed at the unbanked and under banked segment of the population utilizing cell phone technology. WIZZIT was launched in November 2004 and  providing affordable banking to the mass market. The service works across all the networks and all phones and SIM cards.

WIZZIT solves not only an accessibility and affordability issue but from a convenience point of view offers 24/7 real time transactions and hence is “Your Bank in Your Pocket.” WIZZIT is recognized as the global pioneer in mobile banking.

It  operates a  ‘virtual bank’ in South Africa that is challenging the branch legacy that is associated with traditional banks, in order to bank the un-banked and till date, it had succeeded in signing up to 5 million subscribers.
To reach its customers, WIZZIT has adopted a unique direct sales approach, employing nearly 2,000 previously un-employed WIZZkids with good local knowledge and contacts of the neighborhoods they operate in. In addition to being able to conduct cellphone-to-cellphone transactions, WIZZIT account holders are issued Maestro debit cards that can be used at any ATM or retailer. WIZZIT charges per-transaction fees that range from 99c (USD 0.15) to R4.99 (USD 0.78) and does not charge a monthly fee nor require a minimum balance. There are no transaction limitations – the service is purely pay-as-you-go.
Footprints: South Africa
Founding Director and CEO of WIZZIT:  Brian Richardson

FAST, SAFE & AFFORDABLE

M-PESA was launched in 2007. Since this time, it has reached nearly six million people in a country with a population of 31 million people where just 5 million people have bank accounts.
M-PESA is a Safaricom service allowing subscribers to transfer money using a mobile phone. Kenya is the first country in the world to use this service, which is offered in partnership between Safaricom and Vodafone. M-PESA is available to all Safaricom subscribers (Prepay and Postpay), even without a bank account. Registration is FREE and available at any M-PESA Agent countrywide. The M-PESA application is installed on the SIM card and works on all makes of handsets.

The service allows Kenyans to transfer money fast, safely and affordably using the mobile phone. Through M-PESA, a customer can send money to another mobile phone user, withdraw cash, buy airtime for themselves or another prepaid subscriber, pay bills and make loan repayments.

M-PESA offers a very simple and secure customer proposition. Simple: The product that Vodafone piloted prior to formally launching M-PESA looked very different from the one they now offer to customers. This former product was much more complex, including features such as group lending models, group products, and treasurer accounts. During the pilot, they learned that much of this complexity had to be stripped away to meet a very specific, narrow demand from the customer: person to person money transfers.
In addition, the user experience has been simplified. There are no signing-up fees and no minimum balances to confuse the customer with hidden fees or conditions. M-PESA’s user interface is intuitive. It works on very basic handsets, and does not require a smart phone. Since 90% of the mobile phones in the Kenyan market are not smart phones, it was imperative that M-PESA work on the simple devices that customers already had.
Secure: Vodafone has also established a secure system that gives customers a sense of confidence. Transactions are completed within 15-30 seconds and customers receive an SMS confirmation that the money has been sent. Vodafone has a back-office system that tracks every transaction and makes it possible to correct any errors and respond to customer concerns. The entire platform is data-rich and transactions leave a long paper trail making the platform an unconducive place for money launderers to operate. Overall, M-PESA has high visibility and Vodafone realizes that trust must be at the heart of their business model.
M-PESA reaches customers through its network of agents. Safaricom has leveraged its existing retail distribution channels to serve as cash-in and cash-out points for M-PESA customers. In addition to this network, it has also signed up other retail stores that wish to include M-PESA services in their product offerings. Vodafone has properly aligned the incentives for these agents to participate, mainly through its commission payments for transactions, but also through benefits such as the increased foot traffic into their stores. M-PESA’s presence has expanded into rural areas, increasing customer adoption.
In Kenya alone and with over 10 million transactions monthly and  outlets outnumbering the Bank Branches by six to one, and that has spurned untold criticism from the Financial sector for stricter regulation to curb the M-PESA onslaught.
Footprints: Kenya, Tanzania and coming soon, countries of Zain operations.
Chief Executive office: Micheal Joseph

CELPAY – Cell Phone wallet services
Celpay is one of the world’s first Mobile Banking companies that combines mobile payments solutions for Consumers and Corporates. Celpay was awarded Wall Street Journal Europe innovation award in 2003.
Celpay provides a number of class leading and innovative solutions which enable individuals and organizations to streamline their payment processes, resulting in more efficient financial management.
Celpay, the ‘cell phone wallet services,’ allows registered customers to use their cell phones for merchant transactions, monthly bill payments, and fund transfer between participating phones.

Customers registering for Celpay receive a new secure SIM card, adding a menu to their cellphones that facilitates the payments and providing access to their Celpay accounts. Money can be added to Celpay accounts via transfers from a bank account, or by depositing cash or a check at a participating Celpay partner bank.

Transfers made using Celpay are free to the payer, while the payee is charged a small fee for each transaction.
Celpay provides a comprehensive mobile banking service between users, including the ability to make payments in real time, including airtime recharge. The operational model, for which Celpay received a Wall Street Journal Europe Innovation Award, is functioning in two markets, Zambia and the DRC. The service can be expanded in existing markets as well as new geographical markets in Africa and beyond. 
Footprints : Zambia, DRC and Tanzania.

CEO: Lazarus mucheje

 
 
Fundamo is the world’s largest specialist provider of enterprise mobile financial services software. Fundamo has the experience and expertise to build the technology and support the foundation of this fledgling industry and Operating out of Cape town,SA With 80 staffs and privately owned.
African operator MTN Group has chosen Fundamo’s Mobile Wallet solution to power its MTN MobileMoney service, which will be available to a subscriber base of over 80 million users across 21 countries in Africa.
The deal, worth $9.7 million (£6.9 million), is the largest mobile banking software deal ever announced, and will bring basic financial services to MTN mobile subscribers in largely unbanked populations of Sub-Saharan Africa and the Middle East. The deal is an extension of the existing relationship between MTN and Fundamo, expanding MTN MobileMoney from South Africa into 20 additional countries.

MTN MobileMoney is a SIM-based version of Fundamo’s Mobile Wallet Solution V3.1, that is specifically designed to meet the needs of MTN’s subscriber base. Using HSM, technologies that offer ATM level security, and a PIN system that prevents sensitive information from residing on the handset, users are entirely safeguarded against theft and fraud.

The solution is also fully compliant with all banking and FICA regulations, enabling banks to log in to the system and manage the banking elements of the service, while MTN focuses on customer acquisition and retention.
The solution does not require users to setup a bank account, instead offering a variety of services, from money transfer, mobile payments and balance checking, to mobile purchases, and the ability to buy airtime in real-time. Users have the option to receive a branded MTN MobileMoney debit card that can be used to withdraw cash from ATMs.
Footprints: SA, South America, Asia, Middle East and 21 countries with MTN Operations.

CEO:  Hannes Van Resburg

Zain Zap
 
Zain was the first mobile company to introduce phone-to-phone airtime credit transfer service in 2005 (Me2U). Currently over US$10 million worth of airtime transfers take place in Kenya, Tanzania and Uganda each month.
 
Zain is currently the fourth largest mobile network in the world in terms of geographic presence, with a footprint in 22 countries spread across the Middle East and Africa and providing mobile voice and data services to over 60 million active customers.
 
Providing the most comprehensive and accessible package of mobile banking features currently available on the African continent, Zap will be initially available in Kenya and Tanzania prior to launch in Uganda. Zap represents the most comprehensive mobile banking service ever launched and will provide millions of people with access to banking for the very first time.
 
Zain is partnering with leading international and regional banks including Citigroup and Standard Chartered to launch Zap, which will allow Zain customers in the three countries to use their mobile phone to:
Pay bills, pay for goods and services, Receive money and send money to friends and family, Send and receive money to the bank accounts, Withdraw cash, Top up their own airtime account or top up someone else’s,Send airtime to Zain customers in East Africa, Manage their bank accounts.
 
The Zap service will also be included as part of Zain’s pioneering One Network service, meaning that customers will be able to send airtime to other Zain customers across Kenya, Tanzania and Uganda. One Network allows travelling customers to move across geographic borders without roaming surcharges, recharge their mobile phones with locally purchased top up cards and receive calls for free.
 
Zap will provide customers with increased security and flexibility, reducing the need to carry cash and ensuring payments between friends and family remain secure. A password is needed for each transaction and the service is protected through a state-of-the-art security application. Customers will also benefit from being able to access the service 24 hours a day, seven days a week through their handset, providing the convenience of accessing cash anytime, anywhere.
 
Zain customers can sign-up for free for the new Zap banking and payment services by completing an application form and handing it over to registered Zain agents in tens of thousands of villages, towns and cities across East Africa. Zain will then provide the customer with a mobile wallet, which will allow them to use their mobile phone in much the same way as a bank account debit card and manage their money through their handset. The service is supported on all handsets including ultra low cost handsets (ULCH) which Zain is successfully rolling out across the continent.

It will cost subscribers a flat rate of US$0.1 (KShs10) for each transaction. A minimum of $0.63 (KShs50) and a maximum of U$443 (KShs35, 000) can be transacted with a limit of 25 transactions for one subscriber in one day.
Footprints: Kenya, Tanzania, Uganda and countries with Zain operations.
 
CEO: Chris Gabriel, Zain Africa

 
Macalla provides mobile payments software and has extensive experience in both the mobile and banking sectors. The platform offers the flexibility of hosted or local deployment.

The Macalla Platform provides many solutions including mobile wallet and payments. It enables subscribers to transfer cash directly from their mobile phone to the mobile wallet of family and friends nationally or internationally.

It is a secure, fast, convenient method and a cheaper way of remitting cash than using traditional means.The money received can be withdrawn at an ATM or transferred from a person or agent’s mobile wallet for cash.
The Macalla Platform enables a wide range of innovative mobile financial services. All of these services can be undertaken both nationally and internationally as the Macalla Platform is multi-lingual and multi-currency. This ensures that a donor sterling transaction is provided in the recipient‘s local currency, for example. All countries legal and financial regulations are taken into account when conducting these transactions.It supports transactions such as  Mobile top up, mobile banking, Remittances,cross border VAS, Bill payment,mobile wallet.
FootPrints: Southern Africa

 
Securing a transaction, just a Phone call away.

NSDT™ uses the audio channel of a mobile phone to transmit secure, encrypted, transaction data through sound waves and It enables mobile Payment and Banking, immediately, easily, and at a very low cost.  Tagattitude’s solutions are user friendly, simple to deploy, and do not require software downloads or hardware modifications.
In 2008, Tagattitude launched the first 100% mobile pre paid account,tagpay.
Tagattitude runs on the Near sound data transfer technology which allows any phone to be used the same way a credit/debit card is used. The phone can be used to withdraw money from an ATM, pay at a merchant POS terminal, conduct peer to peer transfers and payments, remit money locally or internationally and pay for online goods and services.
Tagattitude has several patents and has won numerous international awards for the development of NSDT.

NSDT provides a way to bank the unbanked. With NSDT, a bank can provide banking services to the unbanked while maintaining its security requirements and profitability targets. Because NSDT requires only minuscule infrastructure outlay, a bank can serve the low end of the market profitably.

Tagattitude provides a banking application to manage NSDT virtual accounts,software to enable any ATM work on NSDT and also builds a special POS terminal that is the cheapest POS terminal in the world. For existing POS terminals, Tagattitude has an add-on to enable them work with Mobile phones as well as ATM cards. 

With NSDT, a bank can open its ATM infrastructure to anyone with a mobile phone, provide banking services to millions of unbanked mobile phone subscribers, migrate everyday transactions onto its TagPOS terminals and do so cheaply profitably, securely and efficiently.
Footprints: Mali, Uganda, Nigeria
CEO : Yves Eonnet

 
Giving you so much more
Two of the biggest brands in South Africa; MTN and Standard Bank have joined forces to bring  the best of both worlds, banking and telephony.

MTN Banking offers the subscribers, the Mobile Money account which gives  access to complete banking flexibility, wherever they are, whenever  they wish – and easily accessible with total security using the cellphone. Simply put, the MobileMoney account is a transactional account, and the subscriber’s account number is easy to remember as it will be your cellphone number, plus one extra check digit.
MTN Banking has been created as a division of Standard Bank and is a partnership between MTN and Standard Bank to offer MTN customers the ultimate in cellular connectivity and banking.
Mtn MobileMoney is very convinent to use,pay for goods and services, Banking transactions and it is also, a MobileMoney Mastercard that is useable across the ATM Network.
Footprints: South Africa and other countries of MTN’s operation.
Director : Dare Okoudjou
 
Orange Money – Banking Made simple and safely.
Mobile payment becomes a reality in Côte d’Ivoire with Orange Money, a service launched in partnership with BNP Paribas, to deposit, transfer money and pay bills from  mobile phone.
Through the launch of this service in the Ivory Coast, then in other countries, BNP Paribas is committed to supporting the gradual improvement of access to banking services for many low-income households that do not have access to traditional banking services.
Thus, the operator Orange announced the commercial launch, after a test phase, the initiative Orange Money in Côte d’Ivoire, in partnership with BNP Paribas. It is a set of banking services accessible from a mobile phone can draw a number of transfers of money.
The service provides deposit or withdraw money from an account Orange Money, of transfers from owners, purchase credits communications or pay bills with his phone.
Users do not need to a Bank account to make transactions on the orange Money platform where an Orange Money can be created for free. The service is secure to prevent theft or fraud, with guarantees on transactions with the regulations of the UEMOA (Economic and Monetary Union West Africa).
Footprints: Cote d Ivoire
Contacts: Marc Rennard, executive director in charge of Orange’s operations in Africa, Middle-East and Asia

 
Life Just got easier
Afric Xpress (AX) is an electronic payment solution provider focused on mobile payments. The company’s mission is to foster electronic – based markets in Africa by turning mobile phones and computers into commercial platforms with the ultimate goal of empowering  customers with security, speed, and convenience. They implement their mobile payment solutions in partnership with telecom companies and banks.
Afric Xpress uses a proven, secured and reliable payment transaction platform that is currently deployed in several countries. The robust transaction engine interact with multiple devices: mobile phones, ATMs, point of sale (retailer) systems, prepaid platforms, bill payment systems…

At the core of the system is a powerful payment engine running in a secured and highly scalable, industrial strength servers. It provides streamlined authentication, authorization, wallet and payment services to consumers and value-added business partners like leading banks, mobile carriers, utility companies, merchants, and event organizers. It serves as a major hub for businesses and consumers alike to transact and settle payments conveniently.
txtNpay is a mobile phone-based secured payment system aimed at both banked and unbanked mobile phone customers. TxtNpay enables its users to send money to anyone with a mobile phone, pay bills, buy pre-paid airtime, check their bank balance, and purchase goods and services. Customers need to get a txtNpay wallet before they can send money. The txtNpay wallet is an electronic stored value account.

Customers can open a txtNpay wallet via the website www.txtnpay.net or at an approved partner location identifiable by the txtnpay partner logo. Wallets can be funded by buying txtNpay electronic cash at an approved partner outlet or making a transfer from their bank account. Customers pay a one-time registration fee when they open the wallet. All charges after this will only apply for the services.
txtnpay centres are approved partner outlets where customers can walk-in to make payments on Afric Xpress platform.
Footprints: Ghana
CEO :Nvalaye Kourouma

Monitise : Your Money, your Mobile
Monitise is focused on the delivery of mobile banking and payment services that cater to the needs of the mass market. Monitise plc ,the leaders in mobile banking and payments, has announced that it has signed Heads of Terms with Made In Africa, the organisation which is heading east African economic growth, to launch its mobile banking and payments platform in East Africa.  The proposed partnership will see the establishment of a joint venture, Monitise East Africa, which will be 51% owned by Monitise plc and 49% owned by Made In Africa.
Monitise East Africa will initially offer services in Uganda and then plans to expand into neighbouring countries, including Burundi, Democratic Republic of Congo, Ethiopia, Kenya, Rwanda, Tanzania and Zambia. The service will enable the provision of banking, payment and money transfer services by both banks and mobile networks, within the regulatory framework of each market.
The service allows multiple financial institutions to offer services on a single platform which consumers can access through a trusted interface, regardless of their choice of cellular network or handset.
This model presents advantages for all parties involved – financial institutions, carriers, card issuers and merchants alike – as everyone shares in the incremental benefits and revenues generated
Monitise’s vision is the creation of a common standard worldwide for mobile banking and payments.
Footprint: Uganda, Burundi, Democratic Republic of Congo, Ethiopia, Kenya, Rwanda, Tanzania and Zambia

CEO : Alastair Lukies

Africa

Emmanuel Okoegwale

According to IFAD, the impact of remittances is recognized in all developing regions of the world, constituting an important flow of foreign currency to most countries and directly reaching millions of households, totaling approximately 10 per cent of the world’s population. The importance of remittances to poverty alleviation is obvious, but the potential multiplier effect on economic growth and investment is also significant.
Remittances, the portion of migrant workers’ earnings sent back home to their families, have been a critical means of financial support for generations. North African countries such as Morocco and Egypt are the continent’s major recipients. East African countries heavily depend on these flows, with Somalia standing out as particularly remittance dependent where it accounts for accounts for 13% of Per capita Income in a country that is destabilized by war over the years and also the Ship Hijacking capital of the world.

African accounts for less than 6% of the world Remittances with over 40 Billion USD dollars sent annual from Migrant workers in other parts of the world to Family members and loved ones, in Africa. Though a significant size of the amount gets to the final destination through informal channel.Only 10 Billion USD are recorded officially but other unofficial channels, though unsafe, exist alongside the operations of the Western Union and MoneyGram of the world.

Africa is still grappling with developmental challenges of monumental proportions with significant populations still living under two USD dollars a day and low internal capacities to produce goods and service soaring  unemployment  rates. Many Africans are selling off their properties to migrate to the developed world  and in some extreme cases, embarking on the death Valley trek or crossing Shark infested waters  to start a new life and send money home.

Remittances to Africa though not much in value to amounts sent to the Caribbean and South America but Africans are paying more to send their loved ones money across the continents. Transfer costs are higher and remittance senders obtain less value for their money. Most African countries restrict money transfers to banking depository institutions, and restrict outbound flows of money unless used for trading.

In Nigeria, in absence  of a  robust National ID systems, some recipients  will be required  to apply for a National Passport at 100 USD so as to enable them cash their international remittance with value which might be less 100 Dollars.

Mobile Money providers like Wizzit, M-pesa, Tagattitude are looking at this challenge as an opportunity to tap in the 40 Billion USD dollar industry using their platforms which may not require huge infrastructure outlay and leveraging on the existing ATM footprints of Partner Banks as cash out points via the Mobile Phones.

With Informal channel unsafe and unreliable, formal channel is expensive and require documentation for recipients (Low Value and High Value), the Mobile may be the way to send love Home to Africans in coming years.