A “land grab” is under way in South Africa's mobile phone and banking industries as big companies — retailers, banks and telecommunications operators — begin vying for a stake of the fast-emerging market for mobile payments. So writes Duncan McLeod in TechCentral (http://www.techcentral.co.za/inside-sas-mobile-payments-land-grab/13674/ )
Significant announcements are being made virtually every week, as SA’s big four banks and the country’s mobile operators make a play for what could become a lucrative new business — providing electronic financial services to the unbanked using mobile phone.
The past week saw two important developments. First, Vodacom confirmed market talk that it is partnering with Nedbank to introduce Vodafone’s M-Pesa in SA. M-Pesa, developed for Vodafone’s Kenyan subsidiary, Safaricom, has proved wildly successful as a person-to-person money transfer system in the East African nation.
The second big announcement came from Standard Bank subsidiary Beyond Payments, which is rolling a similar system in conjunction with retail chain Spar. Standard Bank’s offering, called Instant Money, is only available in the Eastern Cape — and soon northern KwaZulu-Natal — but will be expanded nationally this year.
Absa already has a solution, which allows consumers to use its ATMs to receive money sent to their mobile phone. It uses an electronic voucher mechanism. First National Bank, which was in the news last week for bringing US company PayPal’s full suite of online payment services to South Africans for the first time, offers something similar.
John Campbell, business development executive at Beyond Payments, describes what’s happening as a “land grab”. All the big banks and mobile operators are experimenting with different models, trying to find the one that will prove a massive success.
There’s no question of the banks backing away, either, as they view mobile payments and commerce as core to their future strategies, Campbell says. That means the fight could soon turn into a full-scale war.
“For Standard Bank, this is a must win,” Campbell says. “It’s our future.”
Beyond Payments was set up outside of the normal Standard Bank structures precisely so that operational issues in the rest of the bank would not distract it. It’s mandate is to come up with innovative new products, even if this means competing directly with long-established and core parts of the bank, Campbell says.
Instant Money isn’t Beyond Payments’ first product. Last year it introduced MiMoney, though it hasn’t taken off in quite the way that the company expected. The product, aimed initially at people without credit cards, especially youngsters who want to shop online, has developed a loyal following in specialist areas. For example, it’s become popular as a way of buying cellular airtime, and as a way of purchasing movie tickets.
People who do use it for online shopping do so not because they don’t own a credit card — they often do — but because it’s seen as a more secure payment mechanism, Campbell says.
Unlike MiMoney, Instant Money is targeted at people without any access to the formal banking system.
The idea behind Instant Money and rival services like M-Pesa is that because mobile phones are in the hands of virtually everyone, they’re an ideal platform on which to transact and move money around quickly. People working in cities, for example, can send money to unbanked family members in the rural areas, with neither party having to open a bank account.
“What we’ve launched with Spar is really backing another horse, as another feed into this whole [mobile payments] thing,” Campbell says.
Spar, which has 850 outlets, is an ideal partner, he says — it has stores catering to the more affluent parts of the population as well as stores targeting the poor, including those in outlying areas.
A flat R9,95 fee is levied on each transaction, with Spar collecting “the bulk” of that money.
Campbell says Beyond Payments will launch similar products with other retailers in time, though the Instant Money brand is exclusive to its deal with Spar.
“It’s flipping hard work to sign up retailers,” Campbell says. Beyond Payments has to train staff in each store so they know how to use the system and how to detect, for example, attempts at money laundering.
Consumers are already using the service to do interesting things, he says. For example, some people send transactions to themselves — handing in cash at the point of sale and converting it into electronic currency — so that it doesn’t get stolen, say, while they’re traveling on the taxi. They then draw the cash they’ve sent to themselves, when they need it. This obviates their need to open a bank account and makes their money less likely to be stolen.
Because these payment systems work over telecoms networks, some analysts have suggested that mobile operators could soon find themselves competing head-on with banks on their own turf. But Campbell thinks this is unlikely, especially in the SA context. He says operators more likely to partner with the banks — like Vodacom has with Nedbank for M-Pesa, or like MTN has with Standard Bank for MTN Money — than they are to go it alone.
“The [financial services] industry is still incredibly tightly regulated,” he says.
Even more regulation could be on the way. The SA Reserve Bank has said that eventually it would like mobile phone payment systems to interoperate, much like ATMs do via the Saswitch network. The central bank hasn’t set any deadline for this, though, as the market is still considered to be in its infancy.
Showing posts with label funds transfer. Show all posts
Showing posts with label funds transfer. Show all posts
Wednesday 31 March 2010
Monday 8 March 2010
New association formed to simplify international credit transfers
A group of 21 banks, clearing houses and associated payment service providers have launched the International Payments Framework Association (IPFA).
The body says its main purpose is to provide business rules, standards and operating procedures to improve non-urgent cross border credit transfers based on the ISO 20022 message standard by establishing a contractual framework.
At its inaugural meeting in London the IPFA has elected a board of directors - consisting of representatives from six banking institutions and three clearing houses - for a three year term.
Arthur Cousins of Standard Bank of South Africa was elected chairman with Equens' Michael Steinbach named vice-chairman.
April 2010 will see the commencement of live traffic between two IPFA members when the The Federal Reserve Bank in Atlanta and Equens will start with exchanging both USD and EUR payments between the USA and Europe.
Meanwhile, several IPFA members have begun planning for the inclusion, into the framework, of the Brazilian, Canadian, Mexican and South African currencies over the next two years.
The full list of members is ABN Amro, Canadian Payments Association, CamaraInterbancariade Pagamentos(CIP), Clear2Pay, Equens, Eurogiro, Federal Reserve Bank, Fifth Third Bank, JP Morgan, Nacha, PayPro, PNC, SECB Swiss Euro Clearing Bank, Standard Bank of South Africa, Standard Chartered Bank, Swift, The Clearing House, US Bank, VocaLink, Wells Fargo/Wachovia, World Savings Banks Institute and ZionsBancorp.
The body says its main purpose is to provide business rules, standards and operating procedures to improve non-urgent cross border credit transfers based on the ISO 20022 message standard by establishing a contractual framework.
At its inaugural meeting in London the IPFA has elected a board of directors - consisting of representatives from six banking institutions and three clearing houses - for a three year term.
Arthur Cousins of Standard Bank of South Africa was elected chairman with Equens' Michael Steinbach named vice-chairman.
April 2010 will see the commencement of live traffic between two IPFA members when the The Federal Reserve Bank in Atlanta and Equens will start with exchanging both USD and EUR payments between the USA and Europe.
Meanwhile, several IPFA members have begun planning for the inclusion, into the framework, of the Brazilian, Canadian, Mexican and South African currencies over the next two years.
The full list of members is ABN Amro, Canadian Payments Association, CamaraInterbancariade Pagamentos(CIP), Clear2Pay, Equens, Eurogiro, Federal Reserve Bank, Fifth Third Bank, JP Morgan, Nacha, PayPro, PNC, SECB Swiss Euro Clearing Bank, Standard Bank of South Africa, Standard Chartered Bank, Swift, The Clearing House, US Bank, VocaLink, Wells Fargo/Wachovia, World Savings Banks Institute and ZionsBancorp.
Mobile Union Launches Online Remittance Service
By: Emmanuel Okoegwale writing in “Mobile Money” - 4 March 2010. http://mobilemoneyafrica.com/
Mobile Union Ltd has announced the launch of its new online remittance service (http://www.mtxpress.com), mtxpress, which uses a secure SMS platform to provide a low-cost and convenient solution for people in the UK to send money to friends and family abroad.
According to the most recent DFID UK Remittance Market Report, the UK is one the top 10 remittance-originating countries worldwide, with approximately GBP2.4 billion recorded outward remittances annually from the UK to the developing world. Mobile Union is taking a new approach to remittance by focusing on a massive under-served market segment: people who want to send smaller amounts of money without being penalised with high fees. Mobile Union’s service enables people to send money safely and securely from their home or workplace without the need to visit a retail location; immediately stripping out the costs in time and money associated with a retail infrastructure and passing on these savings to customers. After registration online, with a user-friendly, simple and easy interface, customers can then send money securely using their debit card. Within seconds, the recipient is notified by SMS message that money is available for collection, leveraging the ubiquitous reach of mobile phones throughout the developing world.
Steven Faulkner founder and Commercial Director of Mobile Union commented:”mtxpress makes sending money home fast and convenient (http://www.mtxpress.com/). A combination of simple pricing and exchange rates directly linked to the Central Bank rate makes it easy to understand the true cost of sending money home.”
Security is of paramount importance to Mobile Union and there are multiple bank-grade security checkpoints for both the sender and recipient of the remittance, enabling customers to have certainty throughout the transaction lifecycle leading to complete peace of mind. In addition, Barclays Bank is providing the day-to-day banking and merchant services and Cybersource, the world’s first online payment management company, processing debit card transactions.
This week’s launch focuses on the UK to Bangladesh market, where Mobile Union has collaborated with BRAC Bank, one of the leading banks in Bangladesh. This partnership will enable recipients, without the requirement of a bank account, to utilise the bank’s extensive network of locations across the country to receive money. However, it is also possible to credit accounts maintained at BRAC Bank.
This template is one that Mobile Union will continue to use as it rolls out its service to other parts of South East Asia and West Africa later this year, providing an accessible service to the underserved.
Speaking about the launch of the service, Randall Harper, CEO for Mobile Union said: “The UK’s remittance market continues to grow, but little attention has been given to people who want to send smaller amounts of money without incurring the high fees. Through our mtxpress service and its secure SMS platform, we are able to provide this under-served segment of the market with a world-class service that is convenient, instant and great value-for-money.”
Mobile Union Ltd has announced the launch of its new online remittance service (http://www.mtxpress.com), mtxpress, which uses a secure SMS platform to provide a low-cost and convenient solution for people in the UK to send money to friends and family abroad.
According to the most recent DFID UK Remittance Market Report, the UK is one the top 10 remittance-originating countries worldwide, with approximately GBP2.4 billion recorded outward remittances annually from the UK to the developing world. Mobile Union is taking a new approach to remittance by focusing on a massive under-served market segment: people who want to send smaller amounts of money without being penalised with high fees. Mobile Union’s service enables people to send money safely and securely from their home or workplace without the need to visit a retail location; immediately stripping out the costs in time and money associated with a retail infrastructure and passing on these savings to customers. After registration online, with a user-friendly, simple and easy interface, customers can then send money securely using their debit card. Within seconds, the recipient is notified by SMS message that money is available for collection, leveraging the ubiquitous reach of mobile phones throughout the developing world.
Steven Faulkner founder and Commercial Director of Mobile Union commented:”mtxpress makes sending money home fast and convenient (http://www.mtxpress.com/). A combination of simple pricing and exchange rates directly linked to the Central Bank rate makes it easy to understand the true cost of sending money home.”
Security is of paramount importance to Mobile Union and there are multiple bank-grade security checkpoints for both the sender and recipient of the remittance, enabling customers to have certainty throughout the transaction lifecycle leading to complete peace of mind. In addition, Barclays Bank is providing the day-to-day banking and merchant services and Cybersource, the world’s first online payment management company, processing debit card transactions.
This week’s launch focuses on the UK to Bangladesh market, where Mobile Union has collaborated with BRAC Bank, one of the leading banks in Bangladesh. This partnership will enable recipients, without the requirement of a bank account, to utilise the bank’s extensive network of locations across the country to receive money. However, it is also possible to credit accounts maintained at BRAC Bank.
This template is one that Mobile Union will continue to use as it rolls out its service to other parts of South East Asia and West Africa later this year, providing an accessible service to the underserved.
Speaking about the launch of the service, Randall Harper, CEO for Mobile Union said: “The UK’s remittance market continues to grow, but little attention has been given to people who want to send smaller amounts of money without incurring the high fees. Through our mtxpress service and its secure SMS platform, we are able to provide this under-served segment of the market with a world-class service that is convenient, instant and great value-for-money.”
Friday 5 March 2010
Remittances – France to Mali
TagPay operates a service which allows people to send money from France to any mobile phone in Mali.
TagPay is says that it is the first stored value solution available on all mobile phones. It is a prepaid account system that stores value on the mobile phone. The receiver is able to spend money in any Merchant accepting the service. Clients can make purchases at participating stores and restaurants using their mobile phone.
TagPay is says that it is the first stored value solution available on all mobile phones. It is a prepaid account system that stores value on the mobile phone. The receiver is able to spend money in any Merchant accepting the service. Clients can make purchases at participating stores and restaurants using their mobile phone.
Wednesday 3 March 2010
PayPal can return to India but without personal payments
Early last month, online payment service provider PayPal had stopped transactions in India and also reversed some fund transfers to personal accounts. The shutdown was because of the doubts that had arisen as to whether the personal payments at Pay Pal were remittances payment from expatriate Indian workers.
Now the Reserve Bank of India (RBI) has allowed PayPal to resume Indian bank withdrawals for Indian businesses that use PayPal to sell their goods or services abroad.
Personal payments into India will still remain suspended. Fahad Irani, the PayPal’s Asia Pacific boss said that the personal payments still remain switched off. RBI has said that it needs specific approvals to allow personal inward remittances to India.
The Indian Payment and Settlement Systems Act states that no person other than the RBI shall commence or operate a payment system, except with an authorization issued by the RBI under the provisions of the Act.
According to the rules set by the RBI, transactions for goods and services to Indian bank accounts will now be requiring a "purpose code" tag specifying the nature of the transaction.
PayPal has said that under new Indian laws these purpose codes are required for all cross-border transactions; depending on the amount of the withdrawal and purpose case, a bank may require additional documentary proof of the transaction, such as invoices and receipts.
The Indian Government has laid down these new laws because it fears that intermediaries like PayPal are used by freelancers who do not pay taxes for income generated abroad.
Now the Reserve Bank of India (RBI) has allowed PayPal to resume Indian bank withdrawals for Indian businesses that use PayPal to sell their goods or services abroad.
Personal payments into India will still remain suspended. Fahad Irani, the PayPal’s Asia Pacific boss said that the personal payments still remain switched off. RBI has said that it needs specific approvals to allow personal inward remittances to India.
The Indian Payment and Settlement Systems Act states that no person other than the RBI shall commence or operate a payment system, except with an authorization issued by the RBI under the provisions of the Act.
According to the rules set by the RBI, transactions for goods and services to Indian bank accounts will now be requiring a "purpose code" tag specifying the nature of the transaction.
PayPal has said that under new Indian laws these purpose codes are required for all cross-border transactions; depending on the amount of the withdrawal and purpose case, a bank may require additional documentary proof of the transaction, such as invoices and receipts.
The Indian Government has laid down these new laws because it fears that intermediaries like PayPal are used by freelancers who do not pay taxes for income generated abroad.
Thursday 18 February 2010
Nokia and India's Yes Bank partner on mobile finance pilot
Nokia the world's biggest handset manufacturer is teaming up with India's Yes Bank on a commercial mobile financial services pilot. The pilot scheme will let people transfer money to another person simply by using their mobile phone number. They'll also be able to pay utility bills and top up SIM cards while the ability to pay for goods and services is expected to be added in the future.
The system is based on technology from Obopay, the California m-payments start-up Nokia took a minority stake in last year. Soon after, the pair unveiled a mobile financial management and payments service targeted at unbanked people in developing countries.
At the time they predicted the service would be rolled out in "selected markets" this year and have now confirmed India as an early test site. Obopay and Yes Bank already had a partnership, enabling person-to-person and person-to-bank mobile payments.
India has the fastest growing cellular market in the world, says Obopay. There are 500 million mobile phones in the country now but this is expected to be reach than 900 million by the end of 2013. Meanwhile, 41% of the population does not even have a bank account.
The system is based on technology from Obopay, the California m-payments start-up Nokia took a minority stake in last year. Soon after, the pair unveiled a mobile financial management and payments service targeted at unbanked people in developing countries.
At the time they predicted the service would be rolled out in "selected markets" this year and have now confirmed India as an early test site. Obopay and Yes Bank already had a partnership, enabling person-to-person and person-to-bank mobile payments.
India has the fastest growing cellular market in the world, says Obopay. There are 500 million mobile phones in the country now but this is expected to be reach than 900 million by the end of 2013. Meanwhile, 41% of the population does not even have a bank account.
Wednesday 17 February 2010
Mobile Payments - M-PESA to be launched in South Africa
M-PESA was launched by Vodafone affiliate Safaricom in Kenya in 2007 and now claims over eight million users in that country. A recent study suggests that more than 10% of Kenya's GDP now pass through the mobile banking service.
M-PESA has since been introduced in Tanzania and Afghanistan and now Vodacom South Africa has teamed with an unnamed local financial institution to target the 26 million people in that country without bank accounts. Vodafone says only 60% of South African adults have bank accounts but mobile penetration is over 94%.
Cenk Serdar, director, mobile payments, Vodafone, says: "Mobile technology in Africa has already improved the lives of millions simply by allowing them to communicate far beyond their immediate surroundings. It is now set to transform the way we send and receive cash. The successful take-up of M-PESA in Kenya has clearly demonstrated the demand for easily accessible, secure payment services particularly in emerging markets."
M-PESA has since been introduced in Tanzania and Afghanistan and now Vodacom South Africa has teamed with an unnamed local financial institution to target the 26 million people in that country without bank accounts. Vodafone says only 60% of South African adults have bank accounts but mobile penetration is over 94%.
Cenk Serdar, director, mobile payments, Vodafone, says: "Mobile technology in Africa has already improved the lives of millions simply by allowing them to communicate far beyond their immediate surroundings. It is now set to transform the way we send and receive cash. The successful take-up of M-PESA in Kenya has clearly demonstrated the demand for easily accessible, secure payment services particularly in emerging markets."
Tuesday 16 February 2010
Paying for parking with your mobile phone
Mobile payment systems are beginning to proliferate pretty rapidly now. There are some very impressive commercial systems out there already. This short video illustrates on such system to pay for parking. This particular system has been developed by Margento, a Dutch based technology company.
Sunday 14 February 2010
Mobile Payments - How "Square" works
A facinating look at how "Square" operates. Is this the future of mobile payments?
Friday 12 February 2010
European Union Parliament kills SWIFT deal
The European Parliament has voted to scrap a controversial agreement to allow US authorities access to EU banking data transmitted over the international SWIFT network.
In November 2009 European Union ministers agreed an temporary nine-month deal to continue letting US anti-terror investigators access details of bank transfers conducted over SWIFT.
The decision to overturn the agreement follows intense US lobbying ahead of Thursday's vote.
Last weekend in an interview with the German magazine Spiegel, Adam Szubin, the US treasury department official in charge of the Terrorist Finance Tracking Program, said that US tapping of SWIFT banking data had helped to identify and break-up a number of potentially deadly terrorist cells operating in Europe. He warned of serious diplomatic consequences, as well as security gaps, if Parliament were to veto the program.
But EU Parliamentarians were unconvinced by the appeals, expressing concerns that the deal failed to protect the privacy of EU citizens.
In the final vote, political leaders in Strasbourg voted 378-196 against the deal, with 31 abstentions.
The European Commission said it will need to explore with the US treasury department the extent to which there is scope to negotiate a long term EU-US TFTP agreement.
Commissioner for Home Affairs, Cecilia Malmström states: "I remain convinced that the program enhances the security of our citizens: it would be the role of the Commission to make sure that all the relevant safeguards for EU citizens' privacy and data protection are duly included in any possible future agreement. In spite of this set back, I hope we will be able to agree a text in the near future that will give us greater security, more data protection and a useful cooperation tool with US authorities.
"Following today's vote in the European Parliament, we will have now to reflect together with our US partners on the possible negotiation of a new agreement".
In November 2009 European Union ministers agreed an temporary nine-month deal to continue letting US anti-terror investigators access details of bank transfers conducted over SWIFT.
The decision to overturn the agreement follows intense US lobbying ahead of Thursday's vote.
Last weekend in an interview with the German magazine Spiegel, Adam Szubin, the US treasury department official in charge of the Terrorist Finance Tracking Program, said that US tapping of SWIFT banking data had helped to identify and break-up a number of potentially deadly terrorist cells operating in Europe. He warned of serious diplomatic consequences, as well as security gaps, if Parliament were to veto the program.
But EU Parliamentarians were unconvinced by the appeals, expressing concerns that the deal failed to protect the privacy of EU citizens.
In the final vote, political leaders in Strasbourg voted 378-196 against the deal, with 31 abstentions.
The European Commission said it will need to explore with the US treasury department the extent to which there is scope to negotiate a long term EU-US TFTP agreement.
Commissioner for Home Affairs, Cecilia Malmström states: "I remain convinced that the program enhances the security of our citizens: it would be the role of the Commission to make sure that all the relevant safeguards for EU citizens' privacy and data protection are duly included in any possible future agreement. In spite of this set back, I hope we will be able to agree a text in the near future that will give us greater security, more data protection and a useful cooperation tool with US authorities.
"Following today's vote in the European Parliament, we will have now to reflect together with our US partners on the possible negotiation of a new agreement".
Wednesday 10 February 2010
Mobile Money Launched in Rwanda
The Governor of the National Bank of Rwanda Mr. Francois Kanimba has presided over the launch of MTN Mobile Money to the media at MTN Centre in Nyarutarama in Rwanda. This new mobile banking product which is compliant with local banking regulations, is a convenient, secure and affordable way of sending and receiving money anywhere from anywhere in Rwanda.
Customers on the MTN network can now sign up for MTN Mobile Money and begin transacting at will through the 120 agents that have been appointed and that located across the country. Those who are not on the MTN network are also able to receive money.
Mr. Khaled Mikkawi, the CEO of MTN Rwanda, described the launch as one of the most innovative initiatives that has been made available to Rwandans in recent times: ‘We have a network reaching over 90% or the population and it is only right that we leverage this coverage for a common good product that will go a long way in the financial deepening of the Rwandan economy.’
MTN pioneered mobile banking in South Africa in 2005 in a partnership with Standard Bank and commercially launched in Uganda in March 2009. MTN Rwanda has partnered with BCR as the key driver financial institution.
Mr. Mikkawi expressed his gratitude to the Governor of the National Bank of Rwanda and the team at the bank for their resolute support with which we would not have been able to launch: ‘I cannot thank the Governor enough for accepting our invitation to preside over this launch to the media. Sir we are humbled by you enthusiastic support and grateful for the opportunity MTN has to play a lead role in the economic and social transformation of Rwanda.’ The National Bank of Rwanda has played a central role in ensuring the product and the project complied with banking regulations.
MTN Rwanda partnered with the largest specialist mobile financial services provider, Fundamo. Fundamo’s leadership team has a strong background in the financial services industry and has applied the stringent design principles required for secure banking systems, whilst also taking full advantage of the unique characteristics of the mobile phone and the mobile user experience. This new style of mobile financial system represents a powerful convergence of the rigor of banking systems and the convenience, simplicity and ubiquity of mobile.
MTN Rwanda also work with Oscillyte Ltd, a consultancy firm that provides specialist strategy, marketing and product development skills and knowledge to organizations’ active in the telecommunications market and mobile in particular. The firm’s lead consultant Mark Guthrie has been Project Manager for MTN Mobile Money.
MTN Rwanda has planned an extensive communication campaign to sensitize the public on the benefits of MTN Mobile Money which include:
* Depositing cash into client’s account at Mobile Money agent outlets
* Sending and receiving money from the convenience of a mobile phone
* Managing ones Mobile Money account
* Withdrawing cash at any MTN Mobile Money agent location.
Customers on the MTN network can now sign up for MTN Mobile Money and begin transacting at will through the 120 agents that have been appointed and that located across the country. Those who are not on the MTN network are also able to receive money.
Mr. Khaled Mikkawi, the CEO of MTN Rwanda, described the launch as one of the most innovative initiatives that has been made available to Rwandans in recent times: ‘We have a network reaching over 90% or the population and it is only right that we leverage this coverage for a common good product that will go a long way in the financial deepening of the Rwandan economy.’
MTN pioneered mobile banking in South Africa in 2005 in a partnership with Standard Bank and commercially launched in Uganda in March 2009. MTN Rwanda has partnered with BCR as the key driver financial institution.
Mr. Mikkawi expressed his gratitude to the Governor of the National Bank of Rwanda and the team at the bank for their resolute support with which we would not have been able to launch: ‘I cannot thank the Governor enough for accepting our invitation to preside over this launch to the media. Sir we are humbled by you enthusiastic support and grateful for the opportunity MTN has to play a lead role in the economic and social transformation of Rwanda.’ The National Bank of Rwanda has played a central role in ensuring the product and the project complied with banking regulations.
MTN Rwanda partnered with the largest specialist mobile financial services provider, Fundamo. Fundamo’s leadership team has a strong background in the financial services industry and has applied the stringent design principles required for secure banking systems, whilst also taking full advantage of the unique characteristics of the mobile phone and the mobile user experience. This new style of mobile financial system represents a powerful convergence of the rigor of banking systems and the convenience, simplicity and ubiquity of mobile.
MTN Rwanda also work with Oscillyte Ltd, a consultancy firm that provides specialist strategy, marketing and product development skills and knowledge to organizations’ active in the telecommunications market and mobile in particular. The firm’s lead consultant Mark Guthrie has been Project Manager for MTN Mobile Money.
MTN Rwanda has planned an extensive communication campaign to sensitize the public on the benefits of MTN Mobile Money which include:
* Depositing cash into client’s account at Mobile Money agent outlets
* Sending and receiving money from the convenience of a mobile phone
* Managing ones Mobile Money account
* Withdrawing cash at any MTN Mobile Money agent location.
Tuesday 9 February 2010
Remittances - Western Union sees 4% revenue drop in 2009
Money transfer services provider Western Union has seen its Q4 2009 revenue rise 2 percent to USD 1.3 billion compared to the same interval of 2008, with constant currency earnings per share (EPS) of USD 0.32, compared to USD 0.34 in the fourth quarter of 2008.
For the full 2009 year, Western Union has seen its revenue drop by 4 percent compared to 2008 to USD 5.1 billion, with EPS worth USD 1.21, compared to 2008 EPS of USD 1.24. The company also saw its volume of cash provided by operating activities reach USD 1.2 billion for the whole of 2009.
In 2009, Western Union’s cross-border consumer-to-consumer (C2C) money transfer market share rose from 17 percent in 2008 to an estimated 18 percent in 2009, while its number of agent locations has grown to over 410,000.
For 2009, the C2C segment represented 85 percent of Western Union’s revenue at USD 4.3 billion, a decrease of 4 percent from 2008. Operating income was down 4 percent and operating income margin was 27 percent, which compared to an operating income margin of 27 percent in 2008.
The EMEASA (Europe, Middle East Africa and South Asia) region, which represented 45 percent of Western Union revenue, reported a revenue decline of 1 percent and transaction growth of 10 percent compared to 2008. India revenue grew 11 percent and transactions increased 22 percent for the year.
The Americas region, which represented 32 percent of Western Union revenue, reported a revenue decline of 9 percent and a transaction decrease of 3 percent for the entire 2009. In the domestic money transfer business, revenue declined 14 percent and transactions declined 5 percent. Mexico, which was 6 percent of Western Union revenue for the year, had a revenue decline of 15 percent and a transaction decline of 12 percent.
The APAC (Asia-Pacific) region, which represented 8 percent of Western Union revenue, increased revenue by 5 percent on transaction growth of 18 percent during the year. China revenue increased 1 percent and transactions increased 4 percent compared to 2008.
For the full 2009 year, Western Union has seen its revenue drop by 4 percent compared to 2008 to USD 5.1 billion, with EPS worth USD 1.21, compared to 2008 EPS of USD 1.24. The company also saw its volume of cash provided by operating activities reach USD 1.2 billion for the whole of 2009.
In 2009, Western Union’s cross-border consumer-to-consumer (C2C) money transfer market share rose from 17 percent in 2008 to an estimated 18 percent in 2009, while its number of agent locations has grown to over 410,000.
For 2009, the C2C segment represented 85 percent of Western Union’s revenue at USD 4.3 billion, a decrease of 4 percent from 2008. Operating income was down 4 percent and operating income margin was 27 percent, which compared to an operating income margin of 27 percent in 2008.
The EMEASA (Europe, Middle East Africa and South Asia) region, which represented 45 percent of Western Union revenue, reported a revenue decline of 1 percent and transaction growth of 10 percent compared to 2008. India revenue grew 11 percent and transactions increased 22 percent for the year.
The Americas region, which represented 32 percent of Western Union revenue, reported a revenue decline of 9 percent and a transaction decrease of 3 percent for the entire 2009. In the domestic money transfer business, revenue declined 14 percent and transactions declined 5 percent. Mexico, which was 6 percent of Western Union revenue for the year, had a revenue decline of 15 percent and a transaction decline of 12 percent.
The APAC (Asia-Pacific) region, which represented 8 percent of Western Union revenue, increased revenue by 5 percent on transaction growth of 18 percent during the year. China revenue increased 1 percent and transactions increased 4 percent compared to 2008.
Saturday 6 February 2010
Is this the future of Banking?
Australia’s Commonwealth Bank has a vision to be number one in customer satisfaction. This short video shows their idea of what the future of banking looks like with the customer clearly in the centre of their focus.
Is this really what the future of banking will be like?
Is this really what the future of banking will be like?
Thursday 10 December 2009
RTGS Payment System Glitch – Operational Risk Vulnerabilities in India
A snarl in the real-time gross settlement (RTGS) system this past Monday, saw a few banks face a near default-like situation. This has yet again raised questions on the value and the soundness of the infrastructure supporting the Indian financial system.
RTGS, for the uninitiated is an almost instantaneous funds-transfer and settlement system. In the Indian RTGS system, it’s possible to transfer money to another bank account within a maximum of two hours. RTGS is mainly used for high-value clearing.
When contacted, a Reserve Bank of India (RBI) spokesperson said, “There was a glitch (in the system) on Monday, after we upgraded the RTGS software over the weekend.” She clarified that RBI had rectified the problem on the same day.
Bankers familiar with the RTGS system said that while clustering of payments is an often-enough occurrence (four to five times a year) this is the first instance of such large-scale malfunction. One large state-owned bank, in particular, faced an acute payment crisis that forced it to request assistance from other banks, to meet its obligations. After a considerable delay, funds were arranged.
“Many of the counterparties did not receive payment till as late as 1.00 am the next morning. And by virtue of one critical fund or counterparty not paying up, it would have had a cascading effect on other banks,” said the head of treasury at one foreign bank.
Customer payments can be processed through the RTGS facility only up to 4.30 pm on weekdays while inter-bank transactions are possible up to 6.00 pm.
People familiar with the matter maintain that central bank officials and computer staff worked towards moving the entire RTGS load to the back-up site of the system vendor. It was only after this switch that RTGS operations could be brought back on an even keel.
While some say, the incident highlights the inadequacy of the RTGS infrastructure, others were too quick to commend RBI for the promptness with which it acted to restore order. “Any system is open to the occasional risk. However, there should always be a fallback arrangement to cater to such eventualities,” said an irate banker who had to soothe quite a number of ruffled clients.
However, a section of the industry terms it as just a blip on account of the fact that RTGS users have grown many-fold. “RBI and several banks are still in the process of enhancing their servers to cater to the excess load. This has occurred, because banks have crossed normal threshold limits, hence, the bunching up of payments. However, in such times, the National Electronic Fund Transfer (NEFT) system can provide an alternate. The only difference is that the window would be slightly larger than 4-6 hours,” said a senior staff member of a leading public sector bank.
Under NEFT, the transfer takes place either on the same day or on the next day, depending on the time of instructions given. Yet, senior private sector bankers disagree. “NEFT can’t be an alibi for RTGS. The bottom-line is that any robust infrastructure should have a fall back. If this had occurred during the month end, we would have had a virtual stampede,” a senior private sector banker said.
RTGS, for the uninitiated is an almost instantaneous funds-transfer and settlement system. In the Indian RTGS system, it’s possible to transfer money to another bank account within a maximum of two hours. RTGS is mainly used for high-value clearing.
When contacted, a Reserve Bank of India (RBI) spokesperson said, “There was a glitch (in the system) on Monday, after we upgraded the RTGS software over the weekend.” She clarified that RBI had rectified the problem on the same day.
Bankers familiar with the RTGS system said that while clustering of payments is an often-enough occurrence (four to five times a year) this is the first instance of such large-scale malfunction. One large state-owned bank, in particular, faced an acute payment crisis that forced it to request assistance from other banks, to meet its obligations. After a considerable delay, funds were arranged.
“Many of the counterparties did not receive payment till as late as 1.00 am the next morning. And by virtue of one critical fund or counterparty not paying up, it would have had a cascading effect on other banks,” said the head of treasury at one foreign bank.
Customer payments can be processed through the RTGS facility only up to 4.30 pm on weekdays while inter-bank transactions are possible up to 6.00 pm.
People familiar with the matter maintain that central bank officials and computer staff worked towards moving the entire RTGS load to the back-up site of the system vendor. It was only after this switch that RTGS operations could be brought back on an even keel.
While some say, the incident highlights the inadequacy of the RTGS infrastructure, others were too quick to commend RBI for the promptness with which it acted to restore order. “Any system is open to the occasional risk. However, there should always be a fallback arrangement to cater to such eventualities,” said an irate banker who had to soothe quite a number of ruffled clients.
However, a section of the industry terms it as just a blip on account of the fact that RTGS users have grown many-fold. “RBI and several banks are still in the process of enhancing their servers to cater to the excess load. This has occurred, because banks have crossed normal threshold limits, hence, the bunching up of payments. However, in such times, the National Electronic Fund Transfer (NEFT) system can provide an alternate. The only difference is that the window would be slightly larger than 4-6 hours,” said a senior staff member of a leading public sector bank.
Under NEFT, the transfer takes place either on the same day or on the next day, depending on the time of instructions given. Yet, senior private sector bankers disagree. “NEFT can’t be an alibi for RTGS. The bottom-line is that any robust infrastructure should have a fall back. If this had occurred during the month end, we would have had a virtual stampede,” a senior private sector banker said.
Friday 13 November 2009
RBI Proposes New Payment Systems
The Reserve Bank of India (RBI) has proposed an action plan on payment systems which have been targeted to be achieved in the next one-to-three years. This includes putting in place alternate settlement arrangements in the event of non-availability of RBI as a settlement bank.
Additionally a road map for the National Payments Corporation of India (NPCI) is to be finalized. NPCI has been set up as an umbrella organization by the banking community to take over the retail payment system activities.
All large-value and time-critical payments will be processed only by electronic means. All bank branches will be enabled with Indian Financial System Code (IFSC) and MICR codes. The intention is to leave the user with the choice of payment product for retail and small-value transactions.
The RBI document ‘Payment systems in India — Vision 2009-12’ is available on the central bank’s website for public comment. The document may be downloaded at http://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=573
Additionally a road map for the National Payments Corporation of India (NPCI) is to be finalized. NPCI has been set up as an umbrella organization by the banking community to take over the retail payment system activities.
All large-value and time-critical payments will be processed only by electronic means. All bank branches will be enabled with Indian Financial System Code (IFSC) and MICR codes. The intention is to leave the user with the choice of payment product for retail and small-value transactions.
The RBI document ‘Payment systems in India — Vision 2009-12’ is available on the central bank’s website for public comment. The document may be downloaded at http://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=573
New projects and major initiatives listed in the plan include;
- Implementing a new and feature rich RTGS system – The need to migrate to a new version of RTGS that could leverage on advancements in technology, provide for scalability in volumes, parameterize more features in line with similar facilities available in other countries, result in more flexibility in operations, better liquidity saving features, etc., would be pursued.
- India MoneyLine – A 24x7 system for one-to-one funds transfers – The existing NEFT system operates during weekdays from 9 am to 5 pm and on Saturdays from 9 am to 12 noon. The Bank would pursue the suggestion to consider the need to extend NEFT to function on a 24x7 basis or to develop a new system akin to the Faster Payments Service in the UK which operates on a 24x7 basis.
- India Card – A domestic card initiative –The concept of a domestic payment card (India Card) and a PoS switch network for issuance and acceptance of payment cards would be looked into. The need for such a system arises from two major considerations (a) the high cost borne by the Indian banks for affiliation with international card associations in the absence of a domestic price setter (b) the connection with international card associations resulting in the need for routing even domestic transactions, which account for more than 90% of the total, through a switch located outside the country.
- Redesigning ECS to function as a true Automated Clearing House (ACH) for bulk transactions – Currently, Local ECS (to facilitate bulk electronic transactions with one-to-many and many-to-one variants) is operational at 76 centres. Centralisation of this process is already underway with the launch of credit variant of NECS at Mumbai (and RECS on a pilot basis). The debit variant is also being planned for implementation. The ECS / NECS solution is internally developed and has been in use since long and the need for building a technology and feature-rich ACH network by totally redesigning the existing ECS to provide end-to-end processing in a straight-through manner would be examined.
- Mobile payments settlement network – Mobile phones are expected to emerge as an important channel for transmission of payment instructions. Efficient mobile payments would require real time transfer of funds with adequate security. Currently all inter-bank mobile transfers are payment instructions for settling funds through existing payment systems. This would require building a national infrastructure for facilitating real time mobile payments.
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