Mobile Money Africa

Roamware Inc that provides mobile roaming solutions has said it is planning to launch a micro-finance application to enable mobile phone users, especially those who do not have access to banks, to carry out financial transactions.

The company has started a pilot project on micro-finance in partnership with Grameen Bank of Bangladesh.

“We are already conducting pilots on the micro-finance application. Our development team is working very closely with Muhammad Yunus, the founder of Grameen Bank. We hope to introduce this application in India soon,” Roamware CEO Bobby Srinivasan said.

The application would be aimed at rural population across the globe that seldom has access to banks.

“The move into mobile banking and micro-financing is a natural extension for us as it leverages our customer relationships, business partnerships and technology innovation. It is a massive market opportunity for Roamware,” he added.

Western Union

Over 1 000 new Agent locations added to the network in the third quarter alone

MOROCCO, October 26, 2009 – The Western Union Company (NYSE: WU), a leader in the money transfer segment of global payments, today announced that it has added over 1 000 new Agent locations to its network across Africa in the third quarter of 2009 alone, expanding coverage to in excess of 16 000 locations.

Whilst in the first half of 2009, Western Union announced that it had added 1 000 Agent locations to reach the network milestone of 15 000 locations across 49 countries and territories, in the third quarter these efforts were doubled, with an equal number being added in a single financial quarter.

On a continent where at least 530 million [1] people representing 81% of the working age population are estimated to be without access to financial services, Western Union is working diligently to deliver on its promise to bring the Western Union® Money TransferSM service to where its African consumers work, shop and live.

“Adding over 1 000 Agent locations in Africa, where the ubiquity of bricks and mortar networks is still relatively limited is a significant achievement which has partially been facilitated by the realignment of the regulatory environments across some key markets”, commented Nathalie Ferrant, Western Union’s business development director for Africa.

With the signing of new Agents such as eFloussy and Eurosol in Morocco, Western Union is now approaching a network size of over 3 000 locations, which results in a network density approaching one Agent location per every 10 000 inhabitants [2] in Morocco.

Its Agent network in Nigeria is also approaching a similar size due to the recent signing of Bank PHB amongst others. With recent signings in these two key markets; Western Union has the most extensive payout networks in two of Africa’s largest remittance markets in terms of the volume of remittances received [3].

During this past quarter Western Union has also marked significant progress in further markets across Africa:

• Angola – Western Union has more than doubled its coverage as a result of the continued roll-out of the Western Union Money Transfer service with Banco de Fomento Angola (BFA), reaching a total footprint of over 100 Agent locations across the country.

• Libya – Western Union has signed agreements with three new Agents including United Bank for Commerce & Investment (UBCI) and National Banking Corporation (NBC).

• South Africa – the roll-out of the Agent network in South Africa is on track having exceeded 200 Agent locations, with the roll-out with Absa set to continue.

“We are extremely pleased with the progress of our network expansion strategy having grown our footprint to some extent across 32 markets out of the 49 in which we currently operate. We will continue to focus on this area of our business to ensure that our African customers not only enjoy increased convenience, but also vital access to fast and reliable money transfers,” concluded Khalid Fellahi, Western Union’s senior vice president, Africa.

—ENDS—

About Western Union
The Western Union Company (NYSE: WU) is a leader in global payment services. Together with its Vigo, Orlandi Valuta and Pago Facil branded payment services, Western Union provides consumers with fast, reliable and convenient ways to send and receive money around the world, as well as send payments and purchase money orders. Western Union, Vigo and Orlandi Valuta operate through a combined network of more than 400,000 agent locations in 200 countries and territories. In 2008, The Western Union Company completed 188 million consumer-to-consumer transactions worldwide, moving $74 billion of principal between consumers, and 412 million consumer-to-business transactions. For more information, visit www.westernunion.com

Contact:
Western Union
Lisa McConnell
Communications Manager, Africa
Tel: +27 11 549 3310
e-mail: lisa.mcconnell@intl.westernunion.com

Alex Ngarambe

Kigali — The National Bank of Rwanda (NBR) will regulate the new mobile money transfer system that will soon be introduced by MTN Rwanda, the central bank Governor said.

François Kanimba said MTN has approached the Central Bank and that the bank has issued the company a license of operation after satisfying the criteria.

“It is important that this system be regulated because it is for the public interest and there is need to safeguard public interest,” explained Kanimba.

The new system will be regulated through the laws governing the payment service providers and the payment system laws.

However, the timeframe in which this will start operations is not yet known as the company is still working on the project which is expected to commence in the near future.

The new service will help MTN subscribers transfer money from one person to another.

The service comes as a relief to millions of Rwandans who have either had to endure high money transfer charges imposed by either banks, or money transfer institutions like Western Union, Money gram.

It is meant to extend affordable, accessible and user friendly money transfer services to millions of the un-banked population in the county.
The same service is being offered by MTN Uganda and other regional telecom companies including Kenya’s Safaricom and Zain.

The system can help transfer money locally and internationally provided it’s from an MTN to MTN network.

Official at MTN say that the system is convenient, secure and affordable way for MTN subscribers to send money, buy airtime and pay bills using their cell phones.

Whether users have an existing bank account or not, they can register for MTN Mobile Money as long as they are MTN subscribers.

Those who do not have MTN SIM cards or even a phone can still receive money from MTN Mobile Money users and send money through a network of agents in their country.

OKUTTAH MARK

From the domestic kitten to the cheetah, the fastest animal on earth, and the lion, the king of the jungle, all cats are reputed for hiding their claws until they are ready for the big kill.

KCB, whose symbol is a lion, is poised to pounce on the mobile banking scene after it let known its intentions to launch a regional money transfer service targeting the higher end market that has until now been ignored by the early birds in the field.

The product to be known as the “mobile wallet” is scheduled to roll out in the new year and will combine the convenience of the mobile handset with the latest in cardless technology to gain a universal appeal that has eluded the existing vendor-based solutions offered by rivals in the banking sector as well as cellular service providers.

For one, the wallet will be accessible to subscribers to any mobile phone network, first in Kenya and then in Rwanda and Southern Sudan, which gives it a potential market of 17 million Kenyans.

Secondly, the mobile wallet will not limited to KCB account holders meaning it has a potential to reach 6.4 million customers, nine times the bank’s current reach, in the banking sector alone. Mr Tom Kahigu, the head alternative business channels and innovations, at KCB says the services will enable them tap into the unbanked.

“The big difference in what we will be offering compared to what is in the market is that one does not need to be a KCB account holder to utilize the services, instead one will be operating a virtual account” said Mr Kahigu.

Potential customers who intend to use the service are only required to be a subscriber to any of the four telecommunication companies and possess a form of identification to get registered.

They will then be operating a virtual account similar to the ones run by Safaricom’s M-pesa and Zain’s Zap.

Banks which have launched mobile banking, include, Equity bank, Standard chartered Bank, Consolidated Bank among others.

They all use a Unstructured Supplementary Service Data (USSD) platform that enables customers access banking services in real time.

It is a capability built into the GSM standard for support of transmitting information over the signalling channels of the GSM network. USSD provides session-based communication, enabling a variety of applications that allow interactive services and utility payments with limited cash transfers.

Unlike the services already in the market, however, the mobile wallet will allow its non KCB customers to either send or receive money through the mobile wallet.

In other banks one needs to be an account holder to enjoy the mobile banking service.

The bank has also interfaced its platform to that of M-pesa, allowing those on KCBconnect to withdraw money from their M-pesa accounts and send it to any other account or withdraw funds from the KCB account and put it in an M-pesa account.

Mr Kahigu said improved telecommunication infrastructure had opened vast opportunities for innovative services and that the bank had entered into agreements with telecommunication companies to offer their services.

STEVE MBOGO

A substantial amount of remittances is still being lost because of high transaction costs because of failure by governments to allow more institutions to carry out international money transfers.

A new report by the International Fund for Agriculture Development (Ifad) says as much as 20 per cent of the cash is lost, money that could be invested to create wealth.

The study said most of the remittance recipients who save do not use the formal channels.

“Bringing these funds into the formal financial system can increase their impact dramatically.”

It advocates the licensing of microfinance institutions, which reach the majority poor and more companies licensed to engage in the business.

It is only in Kenya, the Democratic Republic of Congo, and Ghana where microfinance institutions are allowed to carry out international money transfers.

Except for less than 10 countries in the continent, lack of competition is being blamed for the high costs.

And, because they do not operate in rural areas, the recipients incur extra costs in travel and more often are exposed to mugging.

Ifad found that only two major money transfer companies control 65 per cent of all remittances and that 80 per cent of African countries restrict institutions to offer the service.

The huge charges for transfers to Africa has previously been cited as forcing people in the Diaspora to use informal means of sending money.

Ifad recommends that financial reforms be undertaken to allow for more financial institutions to enter the business to increase competition.

Exclusivity agreements between the firms and the local banks should be phased out, Ifad says.

“[Such] contracts that prevent agents from forming partnerships with other providers block competitors from entering the market,” said the report.

The fund has also recommended that institutions be innovative to provide other financial services to remittance recipients like insurance and savings products to strengthen the link to development.

If the transfer charges were manageable, the report says, would lead to savings, which can be used for other development activities and encourage Africans in the rich countries to send more cash.

Mpesa

SIMON NDONG’A

Air travelers will now be able to book their tickets from their mobile phones and pay through Safaricom’s money transfer service, M-Pesa

This follows the signing of an agreement between the listed telecoms firm and three local airlines – East African Safari Air, Air Kenya and Aircraft Leasing Services.

Chief Executive Officer Michael Joseph said that the initiative would enable the firm’s subscribers to obtain day-to-day services in an efficient, cost effective way and also help reduce the hustles travellers undergo to book their airlines.

“I want to congratulate the airlines who are willing to go with us to see the benefits of this, to see what benefit can be offered to customers and even come to the airport and get services using your mobile phones,” he said. “It is just part of the services that we want to offer.”

To use the service, subscribers will be required to log on to www.safaricom .com from their mobile phones. They will then select their preferred flight, enter their names and mobile number upon which they will get a booking reference and instructions on how to pay through M-Pesa.

Once they make payments, they will receive a confirmation SMS with their booking details.

“You can even come to the airport with your mobile phone and show your confirmation number there and then you will get a ticket,” Mr Joseph said.

“This feature is really unique and I am very happy that we have done this.”

The launch comes at a time when Safaricom is widening the gap between it and the competition in the data market.

Pilots for this service began in July this year culminating in its launch. Safaricom has targeted to recruit over one million data subscribers in the next three months through such innovative services.

Alex Ngarambe

Kigali — MTN Rwanda, the country’s first and largest mobile operator by market share expects to hit 2 million customers by the end of the year.

According to Yvonne Makoro, Senior Marketing Executive of the Nyarutarama based Telecom Company, the company is optimistic that it would achieve this by providing good and quality services to their clients.

MTN Rwanda boasts of the widest network coverage in the country with 1.7 million subscribers, according to Makolo.

However, contrary to this figure the firms parent company, MTN Group , said in its latest report that subscriber base in is about 1.2 million subscribers.

“Our plan is to reach the target which we set in our effort to being the leading telecom operators in the country,” said Makoro.

However, with the entry of another player Tigo, which will soon launch operations as third national operator MTN Rwanda does not enjoy the monopoly it used to.

In their continuous campaign to deliver better services to their clients, MTN Rwanda unveiled a new Customer Service Centre (CSC) in Rubangura house, Kigali City centre two weeks ago.

MTN is also set to roll out a Mobile Money product which is meant to extend affordable, accessible and user friendly money transfer services to billions of un-banked people around the world.

Makolo said that the company is working on the project and the service will be rolled out in due course. The service is already being used by MTN Uganda and other regional telecom companies including Safaricom of Kenya and Zain.
With the launch of MTN zone where callers make big savings of between 5-90 percent in areas where there is low network utilisation, the company was targeting 20,000 subscribers from the commercial launch.

MTN says that it is targeting 200,000 subscribers and hopes to acquire 50 percent share of the 6 million mobile subscribers that Rwanda Utilities Regulatory Authority (RURA) is targeting by 2012.

However, according to the African Economic Outlook (AEO) report released in Kigali recently by the African Development Bank (AfDB) MTN’s market share dropped from 96 percent to 80 percent by the end of 2008.

The Group said its market share had dropped to 83 percent as at June 30, 2009 but expects it to recover by 4.4 percent in 2013.

Sponsor Wire.

“Sending Money Home to Africa”

African workers send home more than US$40 billion to the region each year but restrictive laws and costly fees hamper the power of remittances to lift people out of poverty, according to a new report by the UN’s rural poverty agency, the International Fund for Agricultural Development (IFAD).

“Sending Money Home to Africa” will be presented at the Global Forum on Remittances 2009, organized by IFAD and the African Development Bank (AfDB) in Tunis, Tunisia, on 22-23 October 2009.

Globally remittances top $300 billion per year, outstripping foreign direct investment and development assistance combined. But while transfer costs have declined significantly in Latin America and in Asia, sending money home to Africa is still expensive. Within Africa, costs can be as high as 25 per cent of the sum.

At the G8 summit in L’Aquila in July 2009, world leaders recognized the development impact of remittance flows and set a goal of reducing the cost of remittances by 50 per cent over the next five years, by promoting a competitive environment and removing barriers.

Two major money transfer companies – Western Union and Money Gram – control nearly 65 per cent of the locations where remittances can be picked up. Most African countries restrict the kind of institutions that can offer remittance services, penalizing microfinance institutions, which have a greater geographical reach than banks.

The number of payout locations across the entire African continent is the same as Mexico, which has only a tenth of Africa’s population. Between 30 and 40 per cent of all remittances to Africa are destined to rural areas where many recipients have to travel great distances to collect their cash.

The report finds that simply by expanding the kinds of institutions able to conduct remittances services to include microfinance institutions and post offices, the number of payment points would more than double.

The IFAD report highlights how new technologies – such as cellphones – and existing infrastructure – particularly post offices or small retail outlets – could vastly increase the reach of remittance services. Algeria, where 95 per cent of remittances are paid through post offices, could be a model for other African countries.

“Supporting this people-to-people money flow to rural areas of Africa is especially vital now because of the recession” noted IFAD Assistant President, Kevin Cleaver, before leaving for Tunis. “The power of remittances can be catalysed by easing restrictions and making it less costly for African families to collect this money,” he added.

Most money sent home by migrants is spent on daily consumption but research shows linking remittances to financial services for the unbanked – savings accounts, loans and insurance – allows even the very poor to save and potentially invest in the development of their community.

On its part, the AfDB, together with a number of partners including IFAD, is committed to search for ways and means to better use such resources. In that respect, the Bank launched a study on migrants’ remittances in four corridors, France/Comoros, France/Mali, France/Morocco and France/Senegal. The study, disclosed in Paris in 2008, shows that remittances range in volume from 9% to 24% of GNP in those countries covered, which is 80% to 750% of ODA received. The AfDB intends to play a still greater role in channeling migrants’ remittances, notably through a multilateral fund to be set up in the near future.

Media contacts:

Frances Kennedy, media contact IFAD in Tunis, +39 347 2429462f.kennedy@ifad.org

Jessica Thomas, media contact IFAD in Rome, +39 06 5459 2215

Chawki Chahed, media contact IFAD in Tunis, +216 22 290 290,

Lotfi Madani, media contact IFAD in Tunis, +216 21 21 81 50l.madani@afdb.org

Yvan Cliche, media contact IFAD in Tunis, +216 71 10 23 87y.cliche@afdb.org

For more on the report, please contact the authors:

IFAD Technical Advisory Division :

Pedro De Vasconcelos

Robert Meins

NBK Partners with Visa and Zain to Launch the First EMV-Chip Compliant NFC
Mobile Payment Trial in the Middle East

National Bank of Kuwait (NBK),the largest bank in Kuwait and Visa Inc, the world’s leading payment solution
provider have partnered with Zain the leading telecommunications operator across the Middle East and Africa to launch the first Near Field Communication (NFC) mobile payment trial in the GCC, using NFC enabled Nokia 6212 devices.

The six month pilot will take place from October 2009 to April 2010 using NFC software technology provided by ViVOtech. Registration will be open from October 2009 for interested NBK customers to participate in the trial. To register for the trial, customers will visit NBK website and follow the registration instructions.

The trial will allow 500 selected NBK cardholders to download their Zain Visa credit card account details directly to their Nokia 6212 classic handset over the Zain network. Once the account has been personalized on the phone, customers can then begin to make purchases at any one of the 100 merchant partner outlets at Kuwait’s largest mall, The Avenues by simply passing a Nokia mobile phone over the Visa payWave reader at the point of sale. The trial uses the same EMV technology which protects all NBK credit and debit
cards.

There are three milestone innovations occurring within this trial. The concept of ’smart posters’ will be introduced to consumers, allowing them to collect retail offers that can be immediately redeemed for purchases at partner outlets simply by tapping their mobile phone against the poster. Secondly,
customers and trial participants will be able to download a free Visa prepaid card by tapping the phone on a smart poster. Thirdly, participants with a credit card and a pre paid card, will also have the option to choose to pay from either cards from their phone at the point of sale, allowing greater on the go flexibility and convenience.

Purchases will be charged directly to the customer’s NBK Zain Visa credit card or Visa prepaid card account just as they would be with a traditional card payment. Payments initiated with a mobile phone benefit from the same security as all NBK Visa card transactions, making mobile payWave a fast, reliable and
secure method of purchasing goods. ViVOtech, the market leader in contactless/NFC payment software, is providing the underlying technology, including the NFC wallet, over-the-air (OTA) card provisioning software, smart posters and the mobile coupon application.

Shaikha Khalid Al Bahar, NBK Deputy Chief Executive Officer said, “NBK is proud to launch the first EMV Chip compliant NFC Visa payWave mobile payment trial in the Middle East. We strive to offer the best and most comprehensive financial services to all our customers, as well as being at the forefront adopting cutting edge technology to enhance services and develop innovative products. Partnering with Visa and Zain has given us a strong platform from which to launch this innovative mobile payWave payment trial for our customers. We are pleased that our customers can benefit from the ease and convenience of paying for their everyday items with their everyday device and also enjoy dynamic retail offers through smart posters while still enjoying
the same level of security that a NBK Visa card transaction provides”.

Kamran Siddiqi General Manager for GCC, Levant, Iraq and Pakistan from Visa said, “As the shift from cash to electronic payment methods continues, Visa is extending its products and services through the mobile channel to deliver fast, efficient and safe mobile payments and related services. We are very excited to have partnered with NBK and Zain to introduce this first trial in the GCC market and are looking forward to deploying it to NBK customers in Kuwait. Recent Visa market research reveals that nearly 80% of Kuwaitis polled were very interested in the idea of having mobile payWave on their phones. We therefore believe that the NBK Visa mobile payWave will appeal to Kuwaiti consumers who are eager to adopt new innovations and technology which brings greater convenience and choice to their lives.

Khalid AlHajery, CEO of Zain Kuwait, said: “This exclusive agreement is in line with Zain’s ongoing effort to offer the best and the latest technology to its growing customer base. Mobile phones are no longer merely devices for making and receiving calls, instead continuous investment in innovation has meant that mobile phones are increasingly becoming a platform for new technology such as proximity payments”.

Through this pilot, NBK, Visa and Zain will gather user insight across a wide range of parameters that include customer acceptance of making contactless transactions through mobile NFC, customer card preference between credit and Visa prepaid while making a payment and tracking of response to NFC-enabled
smart posters and coupon redemptions.

About National Bank of Kuwait (NBK):
NBK was founded in 1952 as the first indigenous bank and the first joint stock
company in Kuwait and the Gulf Region. NBK reported profits of USD 925 million
(KD 255 million) for 2008, among the highest in the Arab world. NBK’s total
assets were USD 43.4 billion (KD 12 billion) at the end of 2008, while
shareholder equity stood at USD 5.2 billion (KD 1.4 billion).

NBK is by far the largest financial institution in Kuwait with effective
market dominance in the commercial banking market and has been consistently
awarded the highest credit rating of all banks in the region from Moody’s,
Standard & Poor’s, and Fitch Ratings. NBK also stands out in terms of its
local and international network, which includes branches, subsidiaries and
representative offices in China, Geneva, London, Paris, New York, Singapore,
and Vietnam alongside its regional presence in Lebanon, Jordan, Egypt,
Bahrain, Qatar, Saudi Arabia, Turkey, and the UAE.

About Visa:
Visa operates the world’s largest retail electronic payments network providing
processing services and payment product platforms. This includes consumer
credit, debit, prepaid and commercial payments, which are offered under the
Visa, Visa Electron, Interlink and PLUS brands. Visa enjoys unsurpassed
acceptance around the world and Visa/PLUS is one of the world’s largest global
ATM networks, offering cash access in local currency in more than 170
countries. For more information, visit www.corporate.visa.com.

About Zain

Zain is a leading telecommunications operator across the Middle East and
Africa providing mobile voice and data services to 69.5 million active
customers as at 30 June 2009. In terms of country footprint, Zain is the 3rd
largest mobile operator in the world with a commercial presence in 24
countries.