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Cape Town - Vodacom has re-launched M-Pesa and MTN has launched Mobile Money to offer consumers a mobile virtual wallet to conduct banking transactions, but a challenge to these systems being widely adopted is that they are seen to work independently.
However, it doesn't have to be this way, says an industry expert.
"Depends what is meant here, but the answer is 'Yes', if the question is 'Is there a single platform that enables multiple mobile money platforms to enable their customers to deposit, transfer and withdraw cash, and pay, at multiple retailers?', as an example both MTN and Vodacom are integrated to wiPlatform", Howard Moodycliffe, head of marketing for wiGroup told Fin24.
The company is a platform provider specialising in point-of-sale integrated mobile transacting and boasts that has processed over R2bn in in-store mobile transactions.
However, the expansion of multiple mobile money platforms has stuttered in SA despite the near universal access to cellphones, especially in urban areas.
Challenges
Challenges include the fact that these systems often operate in silos which makes it difficult for consumers to quickly and efficiently transfer funds from one to the other.
It costs R2 to withdraw money from a participating M-Pesa retailer, but as much as R10 to transfer cash to unregistered users of the platform.
With MTN's Mobile Money, there is a minimum charge of R4 for cash withdrawals though that goes up to R9 at ATMs and R3 to transfer money to non-MTN subscribers.
On Mxit, you can trade Moola for goods and services, but vendors have to registered on the platform. South African banks also have a range of virtual currencies that can be used to buy and sell, but these are rarely transferrable across platforms.
But the problems can be overcome, said Moodycliffe.
"wiPlatform solves the above challenges to interoperability, from a technical point of view a mobile money platform integrates to wiPlatform once, and can then be turned on in the point-of-sale of any retailer in our platform footprint once the mobile money platform and the retailer have agreed commercials."
One system could also make it easier for retail staff to manage a wide variety of transactions.
Research firm eMarketer expects mobile commerce to grab around 1.2% of online sales this year in an online retailing market expected to grow to $304bn.
"With wiPlatform a single 'mobile' tender type button is placed on the till screen which then manages each and every mobile transaction type through that point-of-sale", Moodycliffe said.
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