Nigeria Mobile Marketing

The telcos in Nigeria are taking the battle to the next frontier in coming months: Mobile Money. Not to be left out of this race are Banks and Independent providers which had seen the clearly untapped potentials in an economy of only 20 million Bank accounts and 60 million mobile subscribers under an addressable market of 140 million people. No one wants to be left behind in the evolving ecosystems.

As the likes of MTN, Zain and NSDT provider, Tagattitude of France, are getting ready to commence Mobile money Transfer and payment in Africa’s largest Mobile market with over 62 million mobile subscribers, the banks are warming up to any provider that will deliver the best value in terms of returns and value. While Zain’s partnership with citi Bank has been widely reported in the media but it is still unclear which technology that they will be deploying. For now, No news is coming out from the second National operator, Globacom on Mobile Money roll out plans.


MTN will be using the USSD technology and will partner with banks for a National roll out in coming months. USSD, Unstructured Supplementary Service Data which is also a form of sending messages over a GSM network is not very similar in terms of processing the message from source to destination. USSD is comparable to when a subscriber is loading airtime to the phone using the x and # commands.

The major drawback for this technology is that users will require to remember the strings or codes to initiate a transaction, it is session oriented which means it terminates if the network situation is poor or congested ,does not store any transaction History, Transactions must originate from the Subscriber mobile Phone.

From the users point of view, many semi literate folks might find it challenging to remember the strings or it is too long or not easy to recall and will also require some form of Identification to receive remittance from the Banks or agents points.


Both operators, MTN and Zain will be adopting the Operator – Bank model. In this model, the mobile operator will provide the infrastructure while the Banks will be cash in and cash out points. The main advantage for both parties are that existing goodwill and customers can be rapidly converted with lower cost of customer acquisitions and also the Branch networks of the Banks will serve as service points, most likely the service centers of mobile operators will join as agent points as significant transactions are already been undertaken at those points. The Major draw back of this model is that the customer will still require to physically visit the Banks for Remittance collections and it might be a challenge for those in the semi Urban and Rural areas where the spread of Bank Branch Network is limited and no form of Identification.

The Near sound Data Transfer technology provider, Tagattitude of France which had also won the Global Consumer Product Innovations Prize twice at the GSMA will be deploying, the Bank – Independent Agent Model. They do not provision services to end users directly. The Banks will be at the fore front working with Agents like Micro Finance Banks, eateries, Fuel stations, Transport firms and even corner shops across the length and Breath of Nigeria.

The Main advantage of their offering is that is 100 percent independent of the Networks, easy to use as users will only require to make a simple call and immediately compatible with all Mobile phones and Networks, GSM, CDMA and even Landlines. The Language menu can be domesticated for major Local Languages in Nigeria or even Africa.

The major draw back for the service is that people with impaired hearings may not be able to use the service.

Unlike USSD, Near sound data transfer is a combo of services and transactions can be initiated from diverse sources. It can be deployed for local and international Remittance, person to person payment, Salaries and wages, ATM, POS,Local and International credit cards and online.

On the international Remittance angle, established operators might lose out if they don’t quickly implement a mobile strategy or they can either team with the likes of Tag whose technology is adoptable to suit their offerings and available across all Networks and mobiles.

For the Operator promoted model, it immediately corners millions of existing subscribers already on their platform but the major draw back is that transaction can only be initiated by On network subscribers. It could turn out in different ways as it may push up subscriber base and on the other hand, serve as a funnel syndrome to limit service availability non network subscribers.

The evolving ecosystems will be keenly contested and any model that offers better value will carry the day but for sure some upsets are in the offing from the likes of Tagattitude.


Emmanuel Okoegwale
www.Linkedin.com/in/emmanuelok
emmanuel@mobilemoneyafrica.com
Tweeter: @mobilemoneyafr

financialtechnology, a Pan-African financial services technology magazine will host the maiden edition of Mobile Payment (M-PAY Nigeria) conference in Lagos on June 2, 2009 at the MUSON Centre. According to the editor-in-chief of the magazine, Mr. Sola Fanawopo, M-PAY will bring together stakeholders in the emerging mobile transactions ecosystem in Nigeria. This include Mobile Network Operators (MNOs), banks, telecommunications and financial regulators, M-Banking integrators, witching companies, handsets manufacturers, entrepreneurs, consultants, MFIs and the media to chart a course for the deployment of mobile commerce businesses.

Mobile Network Operators (MNOs), banks and third party aggregators are launching mobile money services in a new country every day. And, Nigeria, the biggest mobile communications market in Africa seems to be the next bus stop for the MNOs. Many of these players will be speaking at MPAY Nigeria in June. He noted that some Nigerian banks are already offering M-Banking services for their customers while some are seeking partnership with MNOs. And of course, the “MPAY would not incomplete without the involvement of the third-party operators and switching companies. These companies will also be speaking at the event. Ditto to the telecommunications and financial services regulators“, he said.

Specifically, MPAY will provide practical guide on “how to do it” as well as offer a roadmap in the preparation for the next revolution. With the theme “Preparing For the Next Revolution”, the M-PAY conference has been billed as the next best conference of ideas and innovation, which would parade topnotch innovators.

Fanawopo said M-PAY conference would offer new growth opportunities and new product ideas which would drive product innovation. “In the long run this would assist businesses to develop deeper and fresh understanding of the market and put them in good stead to make informed decisions that would ultimately improve the bottom-line”.

Benefits derivable from attending M-PAY Nigeria are legion. Stakeholders and participants would have full understanding of regulatory requirement in mobile payment services, appreciate the role of switching companies in processing mobile payment transactions as well as understand the business case for a collaborative multi-operators and multi-bank mobile payment network.

In addition, participants will also gain insight into how to build an agency network for effective cash-in/cash-out, understand how to integrate mobile payment with existing financial services infrastructure and how to make mobile payment work for MFBs and mastering of entry strategy for mobile payment in a new market, among others.


Emmanuel Okoegwale
www.linkedin.com/in/emmanuelok
emmanuel@mobilemoneyafrica.com

mPay Connect provides strategic, product planning, and business development consulting services to clients interested in offering mobile financial services to their customers. mPay Connect is experienced in serving clients with banked and unbanked customers world-wide.

www.mpayconnect.com

MMA:Some Mobile Money players are actually managing their services like a Product.Is it really a product or services?

GENCER:I think the more important question is: Is a mobile financial offering a transformative new business or simply a new channel for distributing existing services/products? For instance, mobile banking may be viewed as a new channel to reach banked customers with their online banking services 24x7. New mobile payments offerings, like mPesa, are transformative businesses since they offer a new set of products and services to unbanked customers that have been unable to have access to financial services in the past. This means a lot more than just extending existing banking services to new customers. It implies a brand new infrastructure and way of reaching a very large set of people with a new business model (tailored for a wide-set of low-income individuals.) The level of complexity involved with setting up the business extends from regulatory considerations to new marketing and agent channel setup. The business model and strategic implications of offering such a business will impact the way non-financial institutions (like MNOs) will interact with their customers moving forward. I liken this to PayPal on steroids… because it involves regional payments offerings, with new regulatory considerations around electronic money as well as cash-in and cash-out, for a set of customers that have never been served previously.

MMA: Mobile payments is transforming the way people react with money in parts of Africa,do you think such successes can be replicated all over Africa?
GENCER: Anyone who has been in payments for any set of time will argue “the devil is in the details.” As such, every country, every market will need to be carefully scrutinized to see whether 1. there is a customer need for a mobile financial services offering, what the current behavior is , whether it can be modified over time, and what the offering will be; 2. the regulatory dynamics will allow for it; 3. the business case makes sense to pursue; and 4. there are a set of entities that will be able to successfully execute on a plan.
The rule of thumb is, if there is an existing way of making payments and it’s reasonably secure, convenient, cost-effective, and ubiquitous, that market may not be a market ripe for mobile financial services. However, in markets where there is a need to overcome a pain point around money movement/services (in one of those areas), those markets will be good targets.

MMA:Is Mobile money a hype?
GENCER:Yes, there is a lot of hype around Mobile Money. Is it justified? Mobile money can mean many things… mobile banking, mobile remittance, mobile payments (proximity and remote), or mobile microfinance. My strong view is: In the developed world where banked customers have excellent means for transacting today, I don’t see a strong customer value proposition beyond the “sexiness” of the concept. People will adopt, but not en masse. Nor will mobile financial services significantly impact their lives. There are a few exceptions to this rule in the developed world where mobile payments make sense: 1. Transit and micropayments based on cash (where cash has been predominately used and the payment method is painful today); and 2. To serve the unbanked who are predominantly cash-based customers and do not have effective payments instruments available to them.
In emerging markets, the hype is more justified where 4 billion people live on less than $8/day. Enabling electronic money movement by reaching these people through the most ubiquitous device in the world (mobile phones) has the ability to change the financial lives of these individuals while significantly impacting the economies of these markets by connecting them to financial assets globally for the first time in history.


MMA: MNO vs Bank Model,which is best for Africa?
GENCER: I don’t see that there is an “either/or” answer here regarding MNO vs. Bank. I will focus on emerging markets for this question. First of all, again, markets vary, but my general point is: MNOs and banks are working and will continue to work together because they need each other. MNOs are needed as the entities that will connect with the masses of unbanked customers directly (banks don’t have the financial motivation to serve these customers directly.) MNOs will provide the virtual bank accounts, the retail footprint, and the marketing/education for customers on the services. Their partner banks (or alternative financial institutions) will do all the money reconciliation and settlement, potentially holding the funds as an aggregated merchant account (similar to the PayPal model), as well as offer the compliance and regulatory support around mobile financial services.
Another question to consider is: To what extent will large, global banks WANT to get involved with the unbanked in their various markets? These entities may decide not to participate for fear of negative brand and business impacts associated with improper KYC and regulatory compliance issues while serving unbanked customers through MNOs. PayPal grew rapidly because they had no fear of getting it wrong 10 years ago. A similar mindset will be needed in this market by a financial institution who has less to lose and much to gain.

MMA: Africa is lagging behind in capacities to deploy Mobile Money,what options are open to players in Africa?
GENCER:I actually think Africa is in the perfect position for mobile money because the financial services industry is not as developed there as elsewhere. As such, similar to what happened with mobile telephony vs. fixed wire, Africa is in the perfect position to leapfrog traditional banking infrastructures with mobile financial services. I see this as an advantage since other developed markets have a “good enough” solution for consumers today which will prevent true consumer adoption of a new system (no need). This is why so much innovation is currently happening in Africa.

MMA:The MPESA Model seems to be a major attraction for Mobile Money players,are we seeing a one-size-fits all emerging?
GENCER: No. When it comes to payments, every market differs significantly because consumer behaviors around finances are considerably unique from one market to the next (as well as other factors including regulations, market dynamics around the ecosystem of players, etc.) From my experience at PayPal, every market was scrutinized carefully to understand how people interact with money, payments, etc. as well as the regulatory aspects of the country. How consumers paid for things even in Italy differed significantly from their habits in the US.
In Kenya, there are over 6.6 million consumers using the mPesa network. In Tanzania, the adoption rate is lagging significantly. There is no “one-size-fits-all” approach, but there are certain principals that are emerging that should not be overlooked. There will be methodologies employed and ways to scale mobile money services so that it can be cost-effective. Localization will always be critical, however.

MMA:What roles can firms like mpay connect play in the emerging ecosystem?
GENCER: We are just at the beginning of this very exciting industry. Innovations around mobile financial services are emerging worldwide on the disparate projects that are taking place. mPay Connect is a bridge for those ideas, people, and businesses. Every week, we reach out to mobile financial services colleagues world-wide to understand best practices and bring those important principals, ideas, and partners back to our clients seeking to enable mobile financial services.

MMA:Do you see Mobiles winning the cash King in Africa in coming years?
GENCER : Two things to keep in mind here: 1. Old habits die hard (especially when it comes to financial behavior); and 2. Cash can’t fight back. Old habits will die and cash won’t fight back when a significantly better alternative to existing financial services exists.
But, I think the real question here is “what does success look like in mobile financial services for Africa.” If, through mobile financial services, we can have a significant positive impact on the GDP of African countries and enhance the economic means of Africans through sustainable, replicable and profitable businesses, then we will have “won.”


Emmanuel Okoegwale
www.Linkedin.com/in/emmanuelok
emmanuel@mobilemoneyafrica.com

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



M-Pesa
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
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


Macslla
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


Tagattitude

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



MTN MobileMoney
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



TXTnPAY
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


Emmanuel Okoegwale
www.Linkedin.com/in/emmanuelok
emmanuel@mobilemoneyafrica.com

African Banks vs MNO: Same road different destination

For Millions of Africans that are still formally excluded from any formal financial services, How and where they get such services is of less importance to them, than getting the service. The Banks are still trying to lure people in through their gates by offering lots of Innovative services that can deliver value to customers but the reality is, this ends where the Brick and mortar branches exist.

Most of the Unbanked are either semi Urban, rural dwellers and Short stay Migratory workers with needs to be met for formal financial inclusion and the Banks are still promoting walking the ‘three Hundred year old’ proven strategies of walking through the door.

The two models that can take Banking away from the existing systems are the Bank model or the mobile operator model for millions of Africans that own a Mobile but without a Bank account. The statistics is widening by the day.In Nigeria, there are 20 million account holders, 8,800 ATM, 7,000 Bank Branches while Mobile subscription is over 62 million as at April,2009 under an addressable market of 140 million people and landmass of land mass of 923768 sq.km! The only way to go is Branchless Banking.


Banking regulation in Africa, though re-active but it is still potent enough to drive Branchless Banking for the Banks that can see the need. Bank promoted version of Branches Banking packages financial services through a retail agent while in some cases where regulation permits, KYC enrollment is conducted at the Bank Branch or agent location. The Agent outlet interacts with the customers for cash in and cash out while the Bank updates customers information and transactions, periodically. This model immediately takes the Banks into territories that were un served in the past with less cost.

It costs the Banks in Nigeria, average 11 months to set up a brick and mortar Branch, costing average of 200,000 US Dollars to get it up and running with property acquisition, rentals and ICT facilities but setting up an agency will require less than 6 hours, depending on technology and 350 dollars to get it up and open to customers.

Where the agent is a store outlet with cash kitty, then cash management issues are significantly reduced since the cash needs are met from the merchants kitty while Balancing of account can be managed either remotely or periodically. In some other bolder models, the merchants pre –pays the deposit and earn commission based on the volumes of transactions conducted via the outlet.

Major drawback for this model is that, Banks tend to over supervise the retail networks like existing Bank Branches, drawing up KYC requirements for virtual customers like full fledge Bank Branch customers. The peculiar situation of the targeted groups negates this approach.

The Mobile operator led scenario is such that financial products are designed and packaged by the MNO while agents networks manages the customer interface and interactions. Safaricom’s M-Pesa is an example. The agent networks performs all the Bank office functions that a Bank would normally carry out. This could be very useful in countries with very robust and well implemented ID systems where a common form of ID is used within the National boundaries. Though it may exclude migratory workers without the necessary documentations but they can still perform simple transactions like money transfer to third parties if it does not exceed the required set amounts under the AML.

The major risk in this model is that where supervision is not closely monitored at the point of KYC enrollment, the platform could be used to circumvent AML regulations since the agent will probably reside in such communities where they operate and might be friendly with some locals with not to good intentions. Cash management could also poise a risk since the core platform provider is not a Financial institution.

For both Banks and Mobile operator led models, It is same objective but different approaches.

Emmanuel Okoegwale
www.Linkedin.com/in/emmanuelok
Nettel@africa telecommunications regulations and policy scholar.