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Thursday, July 23, 2009
A FRICA 'S LEA DING ONLINE RESOURCE FOR MOBILE FINANCIA L INCLUSION
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8/5/2009 5:10 PM
Mobile Money Africa » Blog Archive » Africa is leading in M-Commerce...
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Africa is leading in M-Commerce – Shaun Campbell POSTED BY EMMANUEL
ON JULY - 23 - 2009
Shaun Campbell | Business Development Director, sub-Saharan Africa | Sybase 365 Share with Africans, your experiences so far in the African Market?
Shaun Campbell
The African market is leading the world in mobile commerce solutions for the unbanked, semi-banked, rural and low income groups. The rural and low income groups are specifically the people that benefit most as such solution reduce the cost and time to travel to a payment point (whether a bank, MFI, insurance agent, electricity office, family/friends). The opportunity lost in
Africa through travel for commercial reasons is huge and significantly holds back the economies at all levels. For example in some countries Teachers must travel to collect their wages each month – up to 1 day is lost in this process which equates to unnecessary cost, lost contribution to the school & family. The same issues arise where ATMs are used to cash-out wages as ATMs are not readily available in rural areas (if at all) and long queues form on pay days. This latent demand for easier access to financial services has led to a high growth in mobile money / commerce schemes in the region, whether deployed by banks, telcos or independent schemes. These schemes also provide work for 10,000’s of people working as agents in all areas of the country’s geography, hence spreading the potential for further wealth generation beyond the towns and cities. Africa is leading the way, alongside S.E Asia. Mobile Financial Inclusion seems to a major attraction to the Financial sector and Telcos but
POLL
RECENT POSTS
Should M-PESA transform to a full Commercial Bank?
we are seeing more of Telcos, digging in. Telcos fundamentally benefit from attracting subscribers to their networks and reduced churn. They also have easy access to the subscriber via the existing SIM cards and agent networks, plus large budgets. This works best for the first-mover Telco, or the Telco with the better and most ubiquitous scheme. Once all Telcos in a market have an offering the advantage is less powerful and churn recommences and the initiative becomes harder to differentiate. Given that Telcos are in business to sell minutes of voice & data this offering will always be a secondary offering to their core business. In some countries (Central African states being a good example) Telcos are not permitted to run mobile money services. In this regard, Telcos must partner with banks or independent schemes to have a stake in such a business, and not use their in-house scheme. Telcos and banks will continuously develop mobile money schemes, but these schemes will always be marginal to their core business and will always be ‘islands’, i.e. exclusive to the clients of each individual institution. We are yet to see truly open schemes operated by banks and Telcos. At present there are no bank- or Telco-led open systems in Africa. This is where the independent schemes come in. Is Regulations catching up with Innovations across Africa. In some countries there is good progress. Mobile commerce is being embraced by the central banks as a critical means with which to remove cash from the parallel markets, increase the economy’s moneyflow and boost GDP. I feel that Nigeria has set a good benchmark by allowing limited or zero KYC tied to low value mobile wallets, scratch cards as a tool for cash-in, realistic expectations regarding transaction handling and security. East Africa, especially Kenya is also proving robust with mandating USSD over SMS and also adopting a realistic stance on KYC. I often use these two countries as references and role models for other countries in the region.
Yes No I dont Know Results
Mobile Money has come to stay – Aleeda Fazal CEO’s Interview: Niall O’Cleirigh – Macalla MI-PAY PAVES THE WAY FOR AFRICAN SUCCESS Mi-pay, bringing Mobile Money innovations to Africans – Simon Cavill The Road Ahead for Mobile Commerce Technology feature : RollPay Western Union Charts Africa’s Mobile Money Transfer Agenda – Interview series Tagattitude Targeting 4 Billion worldwide Mobiles – CEO, Yves Eonnet Interview with Ashish Desai,GM Comviva Mobile Money is win-win for Africans – Meneske Gencer
The central banks are now focusing on guiding the standards on the real issues of mobile commerce, such as agent float management, consumer protection, security risks and trustee account management. This is a sign of a market entering the next phase, moving on from early-life innovation to an established business model. Mobile Money Regulation: Telecommunications or Financial Regulator. In my mind it is very clear. Telecomms regulation is concerned with managing the distribution and usage of frequency and associated telecoms issues. The mobile commerce market is not the direct concern of the telecoms regulators, but they do indeed play a role in enabling fair and unhindered access to SMS/USSD technologies by no-Telco players, setting suitable access pricing and consistency in Telco network access. The owner of mobile commerce regulation is, in all cases that I have seen, the Central Bank who’s national payments team & supervisory team typically research and set the standards, and manage the compliance of ongoing services. Whether the Central Banks need a dedicated mobile commerce team is a much debated topic, and I believe that this will come as mobile commerce becomes more and more universal. What Technology do you think is appropriate for Africa where millions of Subscribers use Low cost Hand set? This is a complex topic as there are several technologies available in the toolbox but few are actually realistically deployable today.
8/5/2009 5:10 PM
Mobile Money Africa » Blog Archive » Africa is leading in M-Commerce...
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Popular Posts Most Commented Recent Posts Mobile Money has come to stay – Aleeda Fazal CEO’s Interv iew: Niall O’Cleirigh – Macalla MI-PAY PAVES THE WAY FOR AFRICAN SUCCESS Mi-pay, bringing Mobile Money innovations to Africans – Simon Cavill The Road Ahead for Mobile Commerce Technology feature : RollPay Western Union Charts Africa’s Mobile Money Transfer Agenda – Interview series Tagattitude Targeting 4 Billion worldwide Mobiles – CEO, Yves Eonnet Interv iew with Ashish Desai,GM Comviva Mobile Money is win-win for Africans – Meneske Gencer
8/5/2009 5:10 PM
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Thursday, July 23, 2009
A FRICA 'S LEA DING ONLINE RESOURCE FOR MOBILE FINANCIA L INCLUSION
Home
About
Contributions
Global Events
Interviews
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News
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8/5/2009 5:10 PM
Mobile Money Africa » Blog Archive » Africa is leading in M-Commerce...
2 of 3
file:///C:/Documents%20and%20Settings/Duncan%20Otieno/Desktop/mo...
Africa is leading in M-Commerce – Shaun Campbell POSTED BY EMMANUEL
ON JULY - 23 - 2009
Shaun Campbell | Business Development Director, sub-Saharan Africa | Sybase 365 Share with Africans, your experiences so far in the African Market?
Shaun Campbell
The African market is leading the world in mobile commerce solutions for the unbanked, semi-banked, rural and low income groups. The rural and low income groups are specifically the people that benefit most as such solution reduce the cost and time to travel to a payment point (whether a bank, MFI, insurance agent, electricity office, family/friends). The opportunity lost in
Africa through travel for commercial reasons is huge and significantly holds back the economies at all levels. For example in some countries Teachers must travel to collect their wages each month – up to 1 day is lost in this process which equates to unnecessary cost, lost contribution to the school & family. The same issues arise where ATMs are used to cash-out wages as ATMs are not readily available in rural areas (if at all) and long queues form on pay days. This latent demand for easier access to financial services has led to a high growth in mobile money / commerce schemes in the region, whether deployed by banks, telcos or independent schemes. These schemes also provide work for 10,000’s of people working as agents in all areas of the country’s geography, hence spreading the potential for further wealth generation beyond the towns and cities. Africa is leading the way, alongside S.E Asia. Mobile Financial Inclusion seems to a major attraction to the Financial sector and Telcos but
POLL
RECENT POSTS
Should M-PESA transform to a full Commercial Bank?
we are seeing more of Telcos, digging in. Telcos fundamentally benefit from attracting subscribers to their networks and reduced churn. They also have easy access to the subscriber via the existing SIM cards and agent networks, plus large budgets. This works best for the first-mover Telco, or the Telco with the better and most ubiquitous scheme. Once all Telcos in a market have an offering the advantage is less powerful and churn recommences and the initiative becomes harder to differentiate. Given that Telcos are in business to sell minutes of voice & data this offering will always be a secondary offering to their core business. In some countries (Central African states being a good example) Telcos are not permitted to run mobile money services. In this regard, Telcos must partner with banks or independent schemes to have a stake in such a business, and not use their in-house scheme. Telcos and banks will continuously develop mobile money schemes, but these schemes will always be marginal to their core business and will always be ‘islands’, i.e. exclusive to the clients of each individual institution. We are yet to see truly open schemes operated by banks and Telcos. At present there are no bank- or Telco-led open systems in Africa. This is where the independent schemes come in. Is Regulations catching up with Innovations across Africa. In some countries there is good progress. Mobile commerce is being embraced by the central banks as a critical means with which to remove cash from the parallel markets, increase the economy’s moneyflow and boost GDP. I feel that Nigeria has set a good benchmark by allowing limited or zero KYC tied to low value mobile wallets, scratch cards as a tool for cash-in, realistic expectations regarding transaction handling and security. East Africa, especially Kenya is also proving robust with mandating USSD over SMS and also adopting a realistic stance on KYC. I often use these two countries as references and role models for other countries in the region.
Yes No I dont Know Results
Mobile Money has come to stay – Aleeda Fazal CEO’s Interview: Niall O’Cleirigh – Macalla MI-PAY PAVES THE WAY FOR AFRICAN SUCCESS Mi-pay, bringing Mobile Money innovations to Africans – Simon Cavill The Road Ahead for Mobile Commerce Technology feature : RollPay Western Union Charts Africa’s Mobile Money Transfer Agenda – Interview series Tagattitude Targeting 4 Billion worldwide Mobiles – CEO, Yves Eonnet Interview with Ashish Desai,GM Comviva Mobile Money is win-win for Africans – Meneske Gencer
The central banks are now focusing on guiding the standards on the real issues of mobile commerce, such as agent float management, consumer protection, security risks and trustee account management. This is a sign of a market entering the next phase, moving on from early-life innovation to an established business model. Mobile Money Regulation: Telecommunications or Financial Regulator. In my mind it is very clear. Telecomms regulation is concerned with managing the distribution and usage of frequency and associated telecoms issues. The mobile commerce market is not the direct concern of the telecoms regulators, but they do indeed play a role in enabling fair and unhindered access to SMS/USSD technologies by no-Telco players, setting suitable access pricing and consistency in Telco network access. The owner of mobile commerce regulation is, in all cases that I have seen, the Central Bank who’s national payments team & supervisory team typically research and set the standards, and manage the compliance of ongoing services. Whether the Central Banks need a dedicated mobile commerce team is a much debated topic, and I believe that this will come as mobile commerce becomes more and more universal. What Technology do you think is appropriate for Africa where millions of Subscribers use Low cost Hand set? This is a complex topic as there are several technologies available in the toolbox but few are actually realistically deployable today.
8/5/2009 5:10 PM
Mobile Money Africa » Blog Archive » Africa is leading in M-Commerce...
3 of 3
file:///C:/Documents%20and%20Settings/Duncan%20Otieno/Desktop/mo...
Comments are closed.
Popular Posts Most Commented Recent Posts Mobile Money has come to stay – Aleeda Fazal CEO’s Interv iew: Niall O’Cleirigh – Macalla MI-PAY PAVES THE WAY FOR AFRICAN SUCCESS Mi-pay, bringing Mobile Money innovations to Africans – Simon Cavill The Road Ahead for Mobile Commerce Technology feature : RollPay Western Union Charts Africa’s Mobile Money Transfer Agenda – Interview series Tagattitude Targeting 4 Billion worldwide Mobiles – CEO, Yves Eonnet Interv iew with Ashish Desai,GM Comviva Mobile Money is win-win for Africans – Meneske Gencer
8/5/2009 5:10 PM
