Breaking News

Mobile payment service introduced in South Africa

by MobiCash creates wider channels for users to transact without withdrawing funds, says MobiCash's Donald Mudenge.
23 May 2016 | 5317 Views
Unbanked South Africans in rural communities and townships can now access a variety of financial services through MobiCash, a recently introduced mobile payment services platform.

According to MobiCash, the system creates a cashless service for customers, allowing them to pay for goods at registered spaza shops, retailers and wholesalers by processing payments on their mobile phones.

The mobile money platform, a partnership between cashless financial services company MobiCash and cellphone payments company Boloro, has already been introduced in other parts of the African continent such as Botswana, Ghana, Kenya, Rwanda, Uganda and Malawi, where the company says it is doing "very well".

The multi-services platform, headquartered in Hong Kong, targets mainly townships and communal markets, it can also be used by merchants to place orders with their wholesaler, through the MobiCash m-commerce option.

Donald Mudenge, COO of MobiCash, says financial inclusion remains a big challenge in SA and Africa as a whole. Banks and other private and public financial institutions, in their endeavour to deliver financial services on a large scale, have been limited due to the lack of technological, regulatory and physical frameworks that have the propensity to cater for the majority of the population regardless of their social and economic standing

"It is out of this realisation that MobiCash was established to address these underlying challenges by creating a disruptive mobile platform which combines "proximity" and "remote" access technologies that are geared towards serving all categories of customers – educated, illiterate, rural inhabitant, urban dweller, youth, aged  – it is for everybody," he points out.

Explaining how it works, Mudenge says a customer can register with a MobiCash agent and deposit funds into their virtual account.

"The funds are transacted directly into an e-wallet account via the MobiCash app [if the user has access to a smart phone] or through an Unstructured Supplementary Service Data push [if the user has an ordinary phone]," he explains.

Upon registration, the customer is given a Network Smart Card (NSC) sticker, which is put on the back of their mobile device. During payment at the retailer, the teller uses a NSC reader to scan the sticker, allocating the funds, which are then used to process the payment, he continues.

"Users can top up their MobiCash accounts with an agent, merchant, ATM, bank teller or via EFT whereby their mobile number is used as reference," he points out.

The introduction of MobiCash to the SA market comes almost two weeks after Vodacom pulled the plug on its mobile money offering M-Pesa in SA, saying there was little prospect of the service to achieving a critical mass of users in its current format in SA.

Anticipating MobiCash's reception in the SA market, World Wide Worx MD Arthur Goldstuck, says there is always room for a new mobile payment service if it can create a demand through effective marketing and distribution.

"That doesn't necessarily mean there is a need for the service, or that there is any guarantee of success.

"MobiCash appears to use Near Field Communicationtechnology, which is becoming fairly well-integrated into mobile wallets, and could allow for wider uptake," he explains.

Dominique Collett, senior investment executive at Rand Merchant Investment Holdings and head of AlphaCode, says there is always space in the market for a new money service of this nature. However, she warns to compete in SA, one has to have a lot of building blocks in place to launch a mobile money transfer product.

"There are some very strong products in the market like Shoprite Money Market, FNB eWallet and Mobile Money from MTN. All of these products have strong distribution networks and large cash acceptance and disbursement access points-critical elements of a remittance product.

"They are also backed by strong brands which engender trust in the product by the consumer. For Mobicash to succeed in SA, it would need to have these elements in play and also strong regulatory support," she advised.

The mobile platform seems to be focusing on the superior tech aspects of the product which will not be sufficient to succeed here. Customers don't lack access to good tech – they lack access to the product and functionality, which comes via strong distribution and cash networks," she went on to say.

Discussing what sets this service apart from other mobile money platforms, since similar services have not taken off in SA as well as other parts of the continent, Mudenge says if any technology can work in Rwanda then it can work anywhere else in the world.

"Most players in this space assume that because SA is more technologically advanced than most African states, their mobile money technology service will be an instant success when deployed here, but that's not always the case," he observes.

For that reason, when entering the market, he explains that mobile money players have placed over-emphasis on person to person (P2P) transfers which are characterised by cash in (deposit) and cash out (withdrawal) transactions.

"However with MobiCash, our technology is disruptive in the sense that we are creating wider channels for users to transact within the virtual realm and they are able to perform their day-to-day transactions such as buy a loaf of bread, buy your mother a dress without the need for making cash withdrawal", he elaborates.

However Goldstuck has a few concerns, mainly that the service relies on several steps such as registration and depositing funds to eventually conclude a payment transaction.

"Mobile payments are moving to a one-pass, one-tap environment, in the sense that a single pass of a scanner over a code, or of a device over a point of sale, along with a single tap, should initiate and complete the transaction.

"To the extent that MobiCash can do this seamlessly, it has a chance to compete, he observes.

Mobicash says through the service, customers have access to a variety of MobiCash value-added services such as insurance – health, life and funeral policies – tax returns directly with local tax authorities and cash remittances. There are no account fees or transaction fees levied on the account. It is absolutely free to open, keep and operate.d economic standing.




Latest News

Will the system change if Chiwenga collapsed and died today?

by Hopewell Chin'ono | 18 August 2019 | 136 Views

Zimbabwe Constitution ignored - The Zimbabwe government has made it cl...

by Zimbabwe Vigil Diary | 18 August 2019 | 84 Views

Mnangagwa back from SADC Summit - President Emmerson Mnangagwa has arr...

by Staff reporter | 18 August 2019 | 501 Views

South African buffalo is nakéd, media goes on mute

by Zanele Lwana | 18 August 2019 | 639 Views

UZ investigating student accommodation scandal

by Staff reporter | 18 August 2019 | 556 Views

Caps United beat Bosso - Caps United 2 - 1 HighlandersCAPS took a huge...

by Staff reporter | 18 August 2019 | 406 Views

Another blow for Chamisa's MDC - POLICE in Bulawayo have banned an MDC...

by Staff reporter | 18 August 2019 | 1559 Views

SADC declares Zim solidarity day

by Staff reporter | 18 August 2019 | 1425 Views

Chamisa's MDC to appeal against demo ban

by Staff reporter | 18 August 2019 | 1453 Views

High Court dismisses application to stop MDC march - The Bulawayo High...

by Staff reporter | 18 August 2019 | 5589 Views

AU, UN to hear SADC position on sanctions, says Mnangagwa - President ...

by Staff reporter | 18 August 2019 | 1668 Views

Bad news for Mnangagwa faction

by Mary-Kate Kahari | 18 August 2019 | 14099 Views

Lumumba urges Zimbabwe political leaders to save 'this great country'

by Staff reporter | 18 August 2019 | 4183 Views

Chamisa says despot Mugabe is better than Mnangagwa

by Staff reporter | 18 August 2019 | 2068 Views

Phelekezela Mphoko speaks on arrest saga

by Mandla Ndlovu | 18 August 2019 | 7941 Views

Jonathan Moyo calls for UN invasion of Zimbabwe

by Staff Reporter | 18 August 2019 | 8118 Views

Police set to block MDC Alliance Bulawayo demos - Indications are that...

by Staff Reporter | 18 August 2019 | 1772 Views

Obert Mpofu behind Chief Ndiweni jail sentence, claims Coltart

by Staff Reporter | 18 August 2019 | 3121 Views

BREAKING: MDC Bulawayo demonstration stopped

by Mandla Ndlovu | 18 August 2019 | 7678 Views

Fellow Zimbabweans, could you please help me find my young children wh...

by Ryton Dzimiri | 18 August 2019 | 2425 Views

Mphoko wants ZACC to arrest Mnangagwa, Mugabe

by newzimbabwe | 18 August 2019 | 4865 Views

Pastor in hot soup over ID - A Zimbabwean pastor who was recently arre...

by Staff reporter | 18 August 2019 | 1485 Views

Gukurahundi victim documents horror story

by Staff reporter | 18 August 2019 | 850 Views

Lobengula descendants want Dabengwa honoured

by Staff reporter | 18 August 2019 | 687 Views

Man accused of stealing wheelbarrow - A Bulawayo man has been arrested...

by Staff reporter | 18 August 2019 | 378 Views

Chamisa, Mnangagwa need to compromise, says Coltart

by Staff reporter | 18 August 2019 | 891 Views

Vuzu parties stoke fears of upsurge in HIV cases - The raging phenomen...

by Staff reporter | 18 August 2019 | 451 Views

Zacc probes Mupfumira prison conditions

by Staff reporter | 18 August 2019 | 1071 Views


Zimfest delivers another 'phenomenal' festival

by Tidi Kwidini | 07 August 2019 | 629 Views

Should you be betting on reality TV show outcome too?

by Staff Writer | 05 August 2019 | 82 Views

WATCH: Jah Prayzah featuring Iyasa Sadza nemuriwo song

by Mandla Ndlovu | 23 July 2019 | 5596 Views

Muvhango star Marang Phala visits Prophet Sovi's church

by Mandla Ndlovu | 22 July 2019 | 9567 Views

Pure Black set to take Africa by storm

by Mandla Ndlovu | 04 July 2019 | 997 Views

'Cook Off' movie set for UK premiere

by Agencies | 02 July 2019 | 813 Views

Zimbabwean rapper teams up with top selling American singer

by Staff Reporter | 17 June 2019 | 1319 Views

Hp Omen 15-5116tx – The Next Generation Gaming Laptop

the hp omen 15-5116tx is being targeted at the performance hungry gamers. it comes in a single variant boasting an eye-catching attractive design. the notebook offers a slim, lightweight chassis and appears like a piece of art than an actual gaming... Read More
Sergey 11 June 2015 ago

Greatsoftline For All Of Your Software Needs

coupon and promo codes: greatsoftline for all of your software needswhile some online sellers have promotional services that reduce the overall amount you spent, others do not .you need to be on the lookout for the best outlets in order to chase th... Read More
ITnews 25 February 2015 ago