First National Bank (FNB) and MXit have teamed up to release a mobile banking solution geared towards more than 13 million youths. The bank`s customers will now be able to purchase MXit Moola for themselves and others, using cellphone banking.
"As the youth is becoming more aware of cellphone banking and the ease of using virtual credits, like Moola, we`ve focused our attention on the banking sector," says MXit CEO and founder Herman Heunis.
Moola purchases were previously made using a valid credit card or premium-rated SMS, according to a statement from FNB. The joint offering will allow youths to purchase the MXit currency using transactional accounts such as debit cards or student accounts.
The service is available using FNB`s cellphone banking menu-based unstructured supplementary service data, the statement says. This is a capability built into the GSM standard and provides session-based communication, enabling a variety of applications.
Black diamonds
Cellphone banking has been predominantly taken up by young black South Africans, says FNB. According to figures released by the bank in March this year, more than 65% of its 1.25 million cellphone banking customers were black, while 22% were white and 8% were coloured.
FNB mobile and transact solutions CEO Len Pienaar says part of the attraction to cellphone banking for FNB account holders is fundamentally the anytime, anyplace access to bank accounts. These benefits have been particularly popular among FNB customers under the age of 25.
The most popular mobile banking transactions are account balances, prepaid purchases, payments, and transfers, Pienaar adds. FNB`s cellphone banking is available in several countries around southern Africa, including SA, Namibia, Botswana and Lesotho.
Related stories:
FNB steps into Lesotho
FNB creeps further into Africa
FNB eyes prepaid solution for SADC
Mobile banking on the rise