Standard Bank's electronic payment service, mimoney, is ready to roll out what it claims is the biggest near field communications (NFC) project in SA.
The facility will allow festival-goers at next month's Oppikoppi to pay for tickets, goods and services using a 'tap n' go' payment card.
Standard Bank's innovation unit, Beyond Payments, is collaborating with Oppikoppi organiser, Hilltop Live, to enable merchants to keep track of payments during the three-day music festival in Northam.
According to Standard Bank, Oppikoppi tap n' go cards will be issued free of charge to every visitor.
Geraldine Mitchley, manager at Beyond Payments, says the technology is suited to the unbanked market and those that do not have a credit card to pay for ticketing and goods.
“There are huge opportunities for NFC technology in SA. Soon, NFC will enable people to pay for their TV licences, airtime, electricity bills and manage their cash via their mobile phones,” notes Mitchley.
“We've signed a three-year relationship deal with Hilltop Live for NFC technology to be used at its events in the future.”
Mimoney works by converting cash into electronic currency onto a mobile phone or card and there are no transaction fees involved. Mimoney, which started in November 2008, is not exclusive to Standard Bank users.
Stations will be set up throughout the Oppikoppi area, where customers can preload money onto their Oppikoppi cards using cash, credit, debit cards or mimoney mobile payment amounts via their cellphones.
To make a payment, cardholders must tap their card against a retailer's cash register and an amount will be deducted from the card's balance.
Herman Singh, Beyond Payments CEO, says the idea behind the NFC initiative is to simplify consumer spending.
It's hoped the project will speed-up the payment process at Oppikoppi, reduce queue time, improve transaction efficiency, and be more secure as festival-goers will not need to carry cash on them.
Carel Hoffman, president of Hilltop Live, explains that Hilltop plans to standardise NFC payments and will roll it out to future festivals and events, which include more than 60 events a year. He says future festivals will soon enable all attendees to pay for events via their cellphones.
“In addition, we will be doing a lot more with social networks, such as Facebook, to market festivals before and during the event. Facebook has democratised the local music industry and has enabled us to interact with people and find out what bands they like.”
Hilltop Live and Beyond Payments are also working on a way to integrate social media technologies, where people will be able to pay for goods with their card and 'like' a certain brand or retailer.
According to Standard Bank, once the festival is over, any value remaining on the cards will be converted into mimoney. This e-currency can be spent at over 25 local online and physical retailers such as Kalahari.net, Look and Listen, Incredible Connection and Ster Kinekor.
SA is just starting to develop NFC systems and virtual payment solutions. In the US, AT&T, T-Mobile and Verizon teamed up to form Isis, an NFC-based mobile payment initiative. During the pilot project which will be introduced next year, commuters using the Salt Lake City public transport system will be able to purchase their tickets using Isis.
Beyond Payments says it's piloting similar solutions as Isis as well as the Oyster Card system in the UK, for transit solutions in SA. It says it will roll out mobile payment products for the transport industry later this year.
Oppikoppi, which is 17 years old this year, will feature 80 local bands this year, as well as Sum41 and The Used. The festival is expected to attract around 15 000 visitors.
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