In Africa, mobile devices have become enablers for everything from mobile TV to electronic payments.
According to industry reports, mobile penetration rates stand at 96% globally - 128% in developed countries and 89% in developing countries. In Africa alone, over the past three years, broadband growth has increased from 2% in 2010, to 11% in 2013.
The latest Analysys Mason Report reveals that, by 2016, there will be more smartphones than banked citizens, due to the fact that smartphones are becoming more and more affordable. This growth challenges service providers to deliver solutions that are built for mobile use.
According to BankservAfrica, interoperability in the electronic payment industry will ensure that banking solutions and payments offerings are functional on mobile platforms. "It is fundamental for the banking industries in African regions, including SADC, to recognise interoperability as a catalyst for future payments," notes BankservAfrica.
Africa is quickly catching up with developed countries in many areas, including banking payment systems, says BankservAfrica. Last year, the Committee of Central Bank Governors (CCBG) commissioned the SADC Payments Integration Project, which aims to create an integrated payment system that will enable regional interoperability of financial transactions across all levels and types of user.
According to BankservAfrica, a key feature of the system is the introduction of a single currency settlement for all cross-border transactions, through a single settlement authority. This feature standardises and simplifies how banks in different countries handle financial transactions, increasing efficiencies and reducing transactional costs.
"The company encourages SADC banking interoperability of financial transactions across all users, and the integrated payment system will do exactly that," says BankservAfrica.
According to BankservAfrica, its role in the SADC Payments Integration Project is to help create a regional automated clearing house (ACH) to process card- and EFT-based transactions, in accordance with agreed system standards and timelines.
"A critical component of this SADC Payments Integration Project is the operators who will perform the interbank transaction switching and calculation of settlement obligations between banks. This operator group comprises various service providers, offering a wide variety of services such as card-based processing, direct credit and direct debit processes, mobile transacting, and cheque processing to financial and other corporate institutions," notes the company.
"High-volume EFT transactions, and ATM, credit and debit card transactions, will be facilitated at competitive rates; money will be transferred across borders at affordable rates; and the unbanked population will be able to participate in the banking system. Interoperability between the various mobile platforms will also be created," concludes BankservAfrica.
The SADC Payments Integration Project is expected to go live in the third quarter of 2013.
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