First National Bank (FNB) today announced updates on its eWallet platform, saying it is integrating it with WhatsApp to target South Africa’s informal economy.
eWallet is a mobile money transfer service launched by FNB in South Africa in October 2009. It allows FNB account-holders to send money instantly to anyone with a valid South African cellphone number, even if the recipient does not have a bank account.
With the new WhatsApp-based platform, FNB says it aims to create a digital entry point into formal financial services for millions of South Africans who may not have traditional bank accounts.
Previously, an eWallet could only be created when an FNB account-holder sent money to a recipient, but new customers can now create their own eWallet via WhatsApp.
In South Africa, FNB eWallet faces competition from several cardless cash transfer services offered by major banks. These include Absa CashSend, Standard Bank Instant Money and Nedbank Send-iMali, all of which allow customers to send money to a recipient’s cellphone number for withdrawal at ATMs or participating retailers without the need for a bank card.
Together, these services form part of South Africa’s broader push toward digital payments and financial inclusion.
According to FNB, in the past year, customers sent over R13 billion via eWaIIet, with 69 million transactions processed on the platform.
Transaction freedom
Hema Morar, FNB eWallet executive head, told ITWeb in an interview that a key priority for the revamp was finding ways to lower the barriers to entry into banking.
“We have created a WhatsApp number (087 392 5538) where the customer simply says ‘hi’ to the number, and then we will help the customer to register themselves. We are looking for the customers that do not necessarily live in a formal dwelling. This means if you rent somewhere, it’s very difficult to get a proof of address,” Morar said.
“With this platform, we are only asking you for your name, your surname and ID number, and then we register you. Once we register you, the platform will give you access to the full menu and it will take you from a wallet where you could literally go and withdraw cash to a whole new world.”
New customers can now create their own eWallet on WhatsApp without needing an existing FNB customer to send them one.
More details:
WhatsApp number:
- 087 392 5538
Fees:
- Monthly account fee: R0
Sending money:
- Sending an eWaIIet costs R10
- The recipient pays no withdrawal fees
PayShap:
- Payment to an FNB wallet or account: R1
- Payment to a non-FNB bank: R3.50
EFT
- To an FNB customer: R1
- To a non-FNB customer: R2
Morar noted that the wallet also offers a Cash Advance feature, allowing users to borrow amounts ranging from R50 to R500, and enables WhatsApp to function as a banking channel.
Additional features include making instant, real-time payments via PayShap; purchasing electricity, airtime and entertainment vouchers; and accessing cash at major retailers, such as Shoprite, Checkers, Usave, Pick n Pay, PEP, Ackermans and selected Spar stores.
Morar added that customers can manage bill payments, pay at fuel stations and selected Spar stores, transfer funds from the eWallet to any bank account, withdraw cash at Spaza shops or Agency Plus locations, and transact via USSD or the FNB app.
Nthabiseng Manamela, FNB personal segment advisory executive head, told ITWeb that “eWallet was primarily designed to drive financial inclusion and it has achieved that”.
She explained that cash dependency in South Africa is largely driven by merchant acceptance. For example, she noted that when someone wants to buy a packet of potatoes from a roadside vendor, the vendor does not accept bank cards as a form of payment, which creates a continued reliance on cash.
“We are also seeing that there is now a rise in what is called the informal or community economy where people in the communities, either in the townships or rural areas, are creating means to be active economically,” she said.
“If you look at a car wash, for instance, what we see is eWallet is being used in those spheres to be able to bridge the gap of payments; whereas without eWallet, previously, the car owner would need to plan to get to an ATM and withdraw cash in order to pay the washer.”
Although there was the traditional eWallet, she added, structural challenges still remained. “Branches are still primarily in complexes, shopping malls and in towns – there is still that distance barrier that is being driven by the cost-of-living issue. For me to be able to go to town to open a bank account, I will need funds for a taxi to do that. So that is a structural barrier that we are seeing.”
She noted that another significant trend is the rise of limited credit history. Based on research FNB conducted, about 80% of people’s incomes are spent within the first five days of the month, leaving them to earn money informally for the remaining 25 days.
Manamela added that, due to the high unemployment rate, customer needs are changing, and traditional bank accounts are no longer meeting these needs.
Banking gateway
Irregular income, driven by the seasonality of employment, is a key factor, with a noticeable increase in temporary workers compared to 10 years ago when most workers were permanent. Many retailers now employ staff on a temporary basis, leaving people uncertain about how much income they will receive, she pointed out.
“We are also seeing that there are very high costs of transacting – you get charged for every transaction that you do. There is still that factor of monthly bank charges from the traditional banks.
“All of these made us to think that eWallet can be more than what it is today. We thought that let us anchor eWallet in a way that it continues to be that gateway to formal banking so that we are able to include individuals not only from a cash component point of view but to give them access to more.
“I see eWallet as a physical wallet with different compartments where you put your bank cards; then you have cash and business cards. eWallet is trying to take that physical wallet and digitise it in such a way that you are able to go into different pockets of your wallet for you to be able to meet the needs that you have,” Manamela said.
In a statement, Lytania Johnson, CEO of FNB Personal Segment, says the enhancement marks a milestone in the bank’s ongoing commitment to broaden access to digital financial services.
“For over a decade, eWallet has enabled millions of South Africans to send and receive money safely and conveniently. This evolution strengthens that foundation by introducing a more seamless, secure and intuitive digital wallet for customers who need simple and affordable solutions. Our focus remains on expanding access to safe, modern ways of transacting and lowering barriers to entry into the formal financial system.”
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