Here are three mobile money stories that caught our eye during the day. African operator Zain is further pushing it’s mobile payment capabilities with TV provider Multichoice; US-based Encore is enabling credit card payments for merchants over the iPhone; and a new service from Masabi and Mi-Pay aims to use mobiles to replace banks in poorer areas of Africa.
Zain:
Via Capital FM
African mobile operator Zain launched it’s mobile money service, Zap, at the end of June. We’ve seen several updates to the service since then, including new partners like Shell. Today, it has announced that it has entered a partnership with pay TV company Multichoice. Zap subscribers will now be able to pay their TV bills over their mobile phone.
Zain claims that since it’s launch, the service has attracted 300,000 customers.
From the release:
Zain Managing Director Rene Meza: “Our focus has been product innovation and development of competitive services by building up our Zap system. Our customers will now conveniently pay for their DSTV services from the comfort of their mobile phones. Our success is embedded in listening to our customers and delivering on what they want done from our end.”
Encore:
Encore Payment Systems is Texas-based company specialising in electronic payments. It maintains its own secure network over which merchants can process credit and debit card transactions. Encore has just announced the launch of the Encore Payment Systems iPhone Mobile Application. Aimed firmly at small merchants and self-employed contractors, the app allows credit card payments to be taken over iPhone or the Android-based G1. It’s downloadable from the Encore site, www.EncorePS.com, and works via 3G network or WiFi.
From the release:
Robel Sebany, VP of Operations, Encore Payment Systems: “At Encore Payment Systems our goal has always been to create a customized payment processing solution for the various needs of each business. With the growing technological advancements of these mobile devices we wanted to ensure our merchants had access to a payment processing option as portable as their business.”
Street Vendor:
This is the story I found the most interesting today. A phenomenon I have heard of in poorer villages in Africa is that idea of the local “phone holder”. One person who is tasked with the care and maintenance of a mobile phone. They receive a small wage for this, and in return they have to make sure the phone is available for the use of villagers. Two companies have gotten together to try and turn that device into the equivalent of the local bank.
Masabi and Mi-Pay have announced a mobile transaction system called Street Vendor. The service would requite no upgrades to handsets or network infrastructure. Based entirely on SMS, the system would allow the phone-holder to act as agent between financial institutions and locals in areas where it’s not economically viable to build an actual bricks-and-mortar bank. The two companies are at pains to point out their advanced security and anti-fraud measures. Currently the system will only support money transfer, but in the future they plan to enable utility payments, direct debit setup and micro loans.
From the release:
Ben Whitaker, COO of Masabi: “Most developing nations have vast regions with limited communications infrastructure and accessibility. In these regions, where credit cards are not yet common, this system will allow mobile operators and retail providers to create innovative new sales channels for in-demand services. A ‘Street Vendor’ with even old handsets can now offer international transaction and retail services to local consumers, without the need for vast technological infrastructure. We are excited to be working with Mi-Pay, leveraging their experience in providing fully regulated banking and remittance services to offer transactional services that can dramatically affect regional economies in the developing world.”
Norman Frankel, CEO of Mi-Pay: “This solution effective eliminates many of the traditional cost and logistical barriers to mass roll-out of mobile financial services. In developing countries, such as those in Africa, where there is insufficient payments revenue to justify the capital expense of rolling bank branches out across large geographical areas, mobile initiated domestic financial services have the potential to transform the retail sector and, therefore, the economy as a whole. The ‘Street Vendor’ system could dramatically affect developing markets by enabling retail providers to create distributed sales forces in previously untouchable regions. Masabi’s skills in delivering highly secure, graphically rich applications on low-cost everyday mobile handsets made them an obvious partner.”
