The most prevalent category of mobile payment services in SA is premium airtime payments. While this category presents a convenient way for users to make small payments, the costs involved are excessive, with business only receiving half the amount of what the consumer pays for the product.
This is according to David Reynders, MD of Pocit, who will speak on this topic at the ITWeb Mobile Payments event. The event takes place on 3 and 4 November at The Forum in Bryanston.
Discussing the various mobile payment categories and characteristics, Reynders identifies the first main category as person-to-person services. “This category is characterised by two main services; the first is remittance, which includes sending money to a friend or family member. This usually means the receiving person needs to be able to cash out.”
The second characteristic of the person-to-person category includes the payment of an item or service. “This means the receiving person would want the money paid directly into their bank account,” states Reynders.
Person-to-business is the second main mobile payment category, he explains. Bill presentment and payment, point of sale, and premium airtime-based payments are characteristic services of this category.
The point of sale service includes retail services. “This, however, is the toughest mobile payment service to implement, as the existing services, such as cash and cards, are already convenient,” he explains.
In terms of which category SA should be working towards, Reynders offers a two-fold view: “Bill payments will eliminate the hassle that so many people face, with taxis, queues and so forth.
“South Africa should also work towards person-to-person remittance services. This will allow money to flow freely and at a lower cost across the country which will represent the first step for many to becoming banked,” he concludes.
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