South African free messaging service MXit plans to enable users to buy real goods via a virtual wallet by the end of the month, says Juan du Toit, MXit head of international business development and marketing.
Speaking at the iWeek 2011 event, held by the Internet Service Providers' Association in Centurion, Du Toit said MXit was looking at ways of utilising the popularity of the IM platform in the consumer space.
Currently, the wallet function on MXit is used to buy and manage Moola, the virtual currency used to buy extras like wallpapers, skins and music from within MXit. After registering for Moola, the user's account gets debited for purchases.
The forthcoming version of the wallet will allow users to make in-store purchases using real money at MXit-enabled tills, and at a later stage pay for goods and services on-platform, according to Craig Whittaker, m-commerce executive for MXit. “For example, they'll be able to pay for movie tickets or a DVD from within MXit.”
Initially, users will be able to buy regular value-added services such as airtime, prepaid electricity, bills and fines. Payments via the wallet will also be extended to new and existing brands on MXit. “Over time we will be expanding our retailer and hospitality network so our users can pay for their fast food and groceries using the wallet,” says Whittaker.
He explains that users will preload real currency onto the wallet and transact against the value of money stored in that wallet. They'll also be able to send money between wallets. “In addition to this is the functionality to make in-store payments; redeem vouchers and coupons; and load money using a six-digit code entered on the point of sale in supported stores.
“Paying for my burger is as simple as clicking 'Quick Pay', giving the cashier a six-digit code and confirming the transaction,” notes Whittaker.
“We thought about how to enable users to better interact with goods and services. We wanted to make it useful so consumers could see when there were gadgets on special or products on sale.
“If the user has Pick 'n Pay connected to their trusted contacts, for example, they can see what's happening in store and have more options available. Pick 'n Pay, meanwhile, gets access to an emerging customer base.”
Whittaker notes that MXit's classifieds platform, MXit Xchange, has over 20 million users, indicating an appetite for real-world products. “We believe market trends indicate that the timing is right for us to move into the mobile commerce environment.”
He says MXit has been trying to develop a wallet that can deliver a 360-degree experience, enabling real-life mobile payments in stores and virtual payments via the platform, to make mobile commerce user-friendly and convenient. “We're excited that this will be the first wallet that is embedded within a social context, in an environment that people already transact, communicate and visit repeatedly on a daily basis.”
While Du Toit declined to mention specific merchants taking part in the service, he said they include fast food outlets and retailers, including convenience stores. “These are the first categories and we'll work hard to integrate their retail and point of sale systems.”
According to Du Toit, MXit is in beta testing and he hopes to debut the service before October, although no fixed date has been set.
We're all social networkers now
Du Toit noted that the nature of social networks has undergone a shift, with Twitter set to have one billion users by 2012.
“The time spent on social networking is growing three times faster than the time spent on the Internet alone,” he said. “There are 750 million messages sent on MXit per day. What was once considered a fad has now become a serious, multi-functional, two-way communication system made up of millions of intelligent users.”
He added that word seems to spread instantly on social media networks and it influences what people see and what they like to believe, citing the uprisings in Tunisia and Egypt as examples.
“Who do you trust to give you information on products or when planning a holiday? Social networks. They provide online shoppers with useful tools to make better and more informed choices.”
According to Du Toit, 92% of users have more confidence in information found online than they do in that from a sales clerk or other source.
“These sites will become the primary portals for people to connect to the Internet,” said Du Toit.
He added that the IDC predicts that within the next three to five years, 10% to 15% of retail will be done through social networks in developing countries.
“Integrating social networking sites with online buying could create a closed loop of action. So if you're on Facebook, for example, you could buy something and then immediately share what you just bought.
“Once we start connecting phones and wallets we'll begin to understand how people make purchasing decisions.”
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