Mobile Banking and Payments Event

Mobile Banking and Payments Event

I knew it was going to be an interesting session when one of the audience told me she was looking forward to the banks slugging it out. Unfortunately the banks did not end up fighting each other but rather shared a common understanding of what needs to be done to allow all South Africans the ability to use their mobile phones as cash.

 FNB was noticeable by their absence which left Absa and Standard Bank to share their insights with us. Adrian Vermooten (Head: Mobile @ Absa Digital Channels) reminded us that South Africa is a pioneer in the mobile banking space. Absa launched their mobile banking offering in 2000 and now have a total customer base of over 5 million. Adrian also elaborated on the Absa strategy of developing multiple channels for all types of customers – from simple WIG and USSD to fully functional WAP Banking. This is constantly evolving and soon we will see on device applications and possibly an iPhone version too. This is an important lesson to remember, especially in South Africa with our dual-market. It is imperative that we develop mobile applications for all segments of the market not just those with fancy new phones. This will truly democratize the access to services for al our people.

 

Dave Parrat (GM Yello Bank) raised the important issue of Mobile Operators over charging for transaction processing which leads to inability to sell products using their systems. More than 50% of the end user cost is taken by the Mobile Operator which leads to insufficient margins for the retailer and content owners. This is not a sustainable business model and needs to be challenged. The banks are well positioned to do this. Dave shard his vision of the day when we will able to use a PIN on our mobiles to facilitate online payments.

 

Finally Johan Campbell introduced us to MiMoney which is Standard Banks new payment platform. Using vouchers that can be paid for fro any bank account, MiMoney allows you to pay from your MiMoney account to a number of merchants including Ster Kinekor and Kalahari. John explained that the merchants were very keen on accepting MiMoney payments and preferred it to cash in many cases. MiMoney also gives business a cost effective way to accept mobile payments and has allowed Mxit to increases their margins over Mobile Operator billed transactions.

 

As expected the panel discussion was very lively, with the audience asking some very tough questions. As always the most important part of the event was the networking with many people making new contacts amidst shooters!

 

Once again a big thank you to all those who attended the event, you make Mobile Monday a success.

 

Our next event is a not to be missed evening. Check back regularly for updates, you should receive you invitation soon.

 

The Mobile Monday SA team.