Cointel has surged through all previous m-commerce barriers to register an unprecedented R1m a day in m-commerce transactions. And there is still room for growth.
While other m-commerce ventures are still in their infancy, Cointel, which is South Africa`s largest telecommunications value added service provider, has achieved what no-one else has yet managed to do: to deliver on the m-commerce promise. In so doing, it is proving to all the place of practical, relevant technology, that is tailored to its users` needs.
"Cointel is without doubt the biggest m-commerce success story in South Africa today," says Paddy Gray, director of ECnet, a division of PQ Africa which provides the secure banking interface for Cointel`s systems, Vodago Autocharge, Sigi Autocharge and soon to be released PhoneRecharge. "There is a perception that business must wait for WAP to mature before m-commerce can truly take off. The reality is that we can leverage today`s technology building blocks to do extremely valuable m-commerce. Cointel`s success is clear evidence of the massive opportunity that exists in following this approach. "Almost all of the m-commerce that is happening in South Africa is Cointel. No other company comes close."
The Autocharge concept is unique in the world, combining cellular telephony, information technology and the banking system in a way that is not done anywhere else. Cointel initially devised it for Vodacom as a means of allowing Vodago clients to recharge airtime without physically having to buy a voucher. Customers dial in using their cellphones, key in a PIN, and voice prompts instruct them how to purchase airtime. The amount they require is automatically debited to their credit card and the airtime is credited to their Vodago account.
Yet even at the time of developing Autocharge, Cointel saw another application for the system: in providing a quicker, more convenient and more efficient for Vodacom`s community service franchisees to order airtime for the phones in their phoneshops. Thus, after a period of intensive research and consultation with Vodacom and its franchisees, Sigi Autocharge was developed.
Such has been franchisee acceptance of the system that 45% signed on to use it in the first month. In the second month this increased to 80% and Cointel expects all franchisees to be using the system by the end of October. "There simply is no more convenient way for franchisees to recharge airtime," says Ahmed Ayob, Cointel`s managing director.
It`s been the ultimate business solution, giving greater flexibility to franchisees, smoother administration procedures to Vodadom and the possibility of increased turnover for all. "Sigi Autocharge has revolutionised the way Vodacom and their franchisees do business," says Ayob. "We anticipate that it will double the franchisees turnover in the near future."
Ayob believes that detailed research on user requirements has been the heart of the success of Sigi Autocharge. The Autocharge concept took Cointel two years of research and development to tailor the system to suit the needs of Vodacom and its franchisees. Further, ABSA, Mastercard and PQ Africa partnered Cointel in the development of the banking interface phase of the total solution.
Cointel has a history of successful innovation in the cellular environment. It was the first company to launch information services using a cellular network. It has featured in the Cellexpo Most Innovative Service awards and was a winner of Sacob`s Technology Top 100 award last year. "Autocharge was our first venture into m-commerce, but we brought our customer-focused creative thinking to the process," says Ayob, "and the results speak for themselves."
He sees huge potential for growth and expanded application of the technology used to create Autocharge, particularly in the business-to-business environment. Cointel is therefore already looking at other areas to which it could be adapted. Naturally, says Ayob, it would not simply be a cut-and-paste of the current system, but tailored to suit the needs of the application.
Ayob sees the greatest opportunities in the short-term being in business-to-business applications, saying that here the relationship between buyer and seller is already established and that it is easier to get buy-in to the process. But business-to-consumer m-commerce will not be long to follow. Ayob believes that the formula is simple. "You have to offer a solution that is easier, cheaper, faster and more convenient. Then people will choose it," he says.
Cointel is currently investigating opportunities to launch and operate their unique systems in Europe thereby extending their revenue base and making Cointel a global player in the m-commerce arena.
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