The combination of Fundamo`s software solution and Macromedia`sJRun Application Server has seen the implementation of an enterprise-strength Java-based mobile payment solution out of Cape Town.
Fundamo mobile-enables bank accounts and allows payments to be made via an ordinary cellphone. Tony Willis, Senior Architect at the local company, says the Fundamo system allows the cellphone to make instantaneous, authorised payments to other Fundamo users, to point-of-sale devices at stores or to virtual merchants, such as vendors of prepaid airtime and prepaid electricity.
"This means that you can buy your groceries, pay for rugby tickets, purchase a prepaid electricity voucher while watching the rugby, send it through to the babysitter at home to re-activate the electricity meter and then later pay the babysitter. These payments are all made from your cellphone and can be made from anywhere and at anytime - secured by the PIN number that you enter before a transaction is performed," he says.
The Fundamo application makes us of the standard short message service (SMS) functionality of the GSM networks. Significantly, the cellphone need not be WAP-enabled to use the service, but may need a SIM card upgrade, although many mobile users in SA already do not need this upgrade. The Fundamo system is written in Java and runs on Macromedia`s Java Application Server, JRun.
According to Jeremy Matthews, Web-enablement consultant and MD of local Macromedia distributor, Dax Data, JRun is a Java technology-based application server focused on the needs of developers building server-side Java-based applications built on open industry standards. "It makes the advanced capabilities of the J2EE 1.3 platform broadly accessible to the entire Java development community."
Macromedia JRun delivers the powerful capabilities of the J2EE 1.3 specification in a single integrated server, providing the ability to build advanced business systems able to leverage distributed transactions and messaging for enterprise-class reliability. "The Fundamo system is an excellent example of the type of work possible with JRun," he adds.
"Fundamo is more than just a mobile banking system because, most banking systems only allow you to make a transfer to another party provided that the other party`s banking details have been already captured and set up in the system. Generally there is a clearance period before the recipient of the payment can access his funds and there is also no guarantee that the recipient will be notified that a payment has been made to his account," says Willis.
"Fundamo differs in that any payment between two mobile-enabled accounts is made instantaneously, there is no clearance period, no requirement to set up beneficiary details beforehand and both parties receive notification via SMS when the payment goes through," he says. "More significantly, we provide merchants with the ability to market their services for purchase across all of our channels, not only Internet or cellphone, and the bonus for them is they are always guaranteed of payment."
Willis says the application allows payments to be made from person-to-person, from person-to-merchant and from merchant-to-merchant. Payments can be made using any one of several devices currently in the Fundamo domain, including a Web browser, a cellphone or using an integrated voice response (IVR) system.
Another benefit of the Fundamo system, he says, is that it can enhance the use of credit cards for payment purposes, eliminating the possibility of credit card fraud. "When a user`s credit card is used for payment, Fundamo can be set up to generate an SMS that asks the payer to verify the transaction. The user is required to key in his PIN before the transaction is allowed to proceed."
Fundamo offers two distinct types of payment: push payments and payment requests. A push payment is initiated by the payer and funds are transferred immediately with notifications sent to both parties, very similar to a cash payment. A payment request is raised by the merchant and it results in a message being sent to the payer, via SMS, requesting authorisation or rejection of the payment.
The recipient of a payment does not always require a mobile-enabled account, although the Fundamo paradigm is then diminished. "Obviously, it is more efficient where both parties have mobile-enabled accounts, but if they don`t, we also provide customers with the equivalent of an ACB transfer. In such cases, however, it is necessary to capture the recipient`s banking details as part of the transaction," adds Willis.
Looking forward, Fundamo plans to include PDAs and set-top boxes, such as a DSTV decoder, in the list of devices that can be used for payment - the latter is especially attractive for pay-per-view purchases. "Because the system is written in Java, it is completely device independent. It allows users to come in on any device and channel they choose."
Expansion beyond the borders of SA has already taken place. "The system is appealing to consumers, mobile operators and banks in other countries on the continent, primarily because it is very simple to use and does not need extensive landline infrastructure," says Willis.
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