The advent of mobile payments in SA is closer to acceptance with MTN`s recent purchase of Prism`s secure subscriber identity module (SIM) mobile payment technology.
Prism is back into profitability after a tough period, and looks forward to "significant roll-outs" by year-end.
"M-commerce has been restricted on two fronts in SA," says Steven Sidley, Prism marketing director. "Firstly, there is no standardised business model on revenue sharing between banks, mobile operators and, to a lesser extent, mobile payment vendors."
He says banks aver that payment is their territory, and so require a fee. Mobile networks, on the other hand, make their subscriber base available for payment vendors and banks, and likewise want a piece of the pie.
"As a payment vendor, there is unfortunately little influence we can exert to change things, but we have facilitated meetings between players and will continue to do so," he says, refusing to disclose details.
"The second issue is part technological, and part sociological. Where does the money come from? Does it derive from credit or debit card accounts, or some other source?
"Whereas the UK, Europe and Australia all know and use credit card-based payment, and although this is the easiest route, SA`s large unbanked population is still largely untouched by the wonders of credit cards. And if one chooses debit cards as a payment source, there are strict rules for encryption of SIM cards in phones.
"As a secure payment vendor we obviously have this sewn up," Sidley says. "The encryption and payment function is on the SIM card."
The SIMs are based on Prism`s aSIMetrix multi-application value-added services platforms that incorporate the SmartTrust WIB (wireless Internet browser), cryptographic security, electronic payment algorithms, key management functions and support for technologies such as GPRS.
Although mobile payment exists locally, this isn`t the case in any large measure. At this point in the technology`s evolution, some mobile operators allow purchasing of prepaid airtime via interactive voice response, on the basis of back-end registered banking details. "Evidently, there isn`t much cross-over between credit card-holders and people who buy prepaid," says Sidley.
Even so, he expects significant capability to facilitate mobile payment by year-end, with two out of the three operators.
Sidley says MTN was chosen for its expertise in transaction and value-added services. Mobile payment involves more than a payment mechanism, it also includes the services around this. In this regard, Prism has rolled out EasyPay, a connection method of bill issuers and consumers.
Prism is already well regarded in the Philippines and Malaysia. In the former region, it rolled out this technology to a company which is at once a bank and a mobile operator. The roll-out is expected to reach a million subscribers by year-end.
Bruce Cockburn, MTN GM, Mobile Future, says this is an opportune time for MTN to deliver value-added and payment services to the operator`s subscriber base, using technologies developed in SA by a multinational with extensive experience in the delivery of secure global payment.
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