Curious why they are not using simple m payments. Also curious why Africa? Standard Chartered Bank and MasterCard have developed a solution that will allow people in the East African nation to make online purchases with their cellphones, obviating the need for a credit or debit card. The service, called PayOnline, will soon be expanded to other African markets. It allows Airtel Money customers to make online purchases via a 16-digit code, much like using a credit card.
The m payments in buses research conducted as part of the Mobile 2.0 component of the 2008-10 research cycle is about to be piloted by the private bus owners association: “The private bus industry in Sri Lanka incurs an immense loss of more than Rs.13 billion annually due to the current system of collecting bus change from passengers. The government incurs an annual loss of about Rs.500 million owning to the production of coins each year.
Making m payments work is not easy. Common standards have to be created and accepted, so that retailers have to invest in one piece of equipment. They are trying to do it in the UK but also giving the elbow to a disruptive competitor. That may be changing, however. In France, the government in 2010 began trials of mobile payments for bus and train tickets in Nice and Paris.
We thought the emerging economies would be first past the post on this one, but it appears that the difficulties of navigating the regulatory delays and uncertainties have eroded the lead. Google will offer mobile payments with MasterCard and Citibank, according to one of the people, as well as with cellphone carriers, hardware manufacturers and retailers. Initially, the mobile wallets will be available only on Google’s Nexus S phone and will use a Citibank-issued MasterCard credit card number and a virtual Google MasterCard prepaid card. Full story.
Much has been written about Kenya’s m-money system. Here the Economist highlights a Gates Foundation paper that highlights an aspect that has not been much written about, the need to balance e money and real money in the hands of the retailers. There are many elements to a successful mobile-money scheme: the right technology, simple marketing, partnerships with banks, support from regulators. But keeping it all going are people like Gaudencia, moving bundles of cash around, on buses and in vans, behind the scenes.
The 2004 Indian Ocean tsunami showed, among other things, the power of the Internet to raise money. Now Haiti is showing the power of the mobile to raise donations for earthquake relief. Old-fashioned television telethons can stretch on for hours. But the latest charity appeal is short enough for Twitter: “Text HAITI to 90999 to donate $10 to @RedCross relief.” In the aftermath of the earthquake in Haiti, many Americans are reaching for their cellphones to make a donation via text message.
When we asked the people of Jaffna what good came of the ceasefire of 2002-05, they said phones and the opening of the road connecting them to the rest of Sri Lanka. Looks like the Iraqis are similar. I love my mobile like a baby, says on Iraqi mother. De facto m-payments are also significant, though there are some problems, according to the Economist. Criminal rings are among the parallel currency’s busiest users.
One hopes of course that this will not detract from the Central Bank’s work on bringing inflation down to single digits and rebuilding trust in the banking system. Sri Lanka will issue new rules covering financial transactions through mobile phones, Central Bank Governor Nivard Cabraal said, as the island’s fast growing celcos join banks to offer new payment methods. “Given the increased usage of mobile phones for financial transactions, the Central Bank intends to issue new operating guidelines for mobile payments during 2009,” Cabraal said in an annual policy speech Friday. He said the move was part of an overall effort to improve the confidence in electronic payments, which would also cover payment cards. Full report.
The New York Times documents a recent study conducted by Nielsen Mobile among 30, 000 wireless customers, that estimates over 3.6% of all mobile phone users in the United States have used their phones to pay for goods and services. This figure is expected to grow in the future, with nearly half of all users of text messages and mobile internet, stating that they hope to make a mobile phone purchase in the future. However, security concerns remain. 41 percent of the consumers who transmit data said security was the reason they didn’t buy things via their mobile phone.