Absa's international money transfer service, a partnership with Western Union (WU), is not an attempt to emulate the First National Bank PayPal offering, since these are different services.
Absa has released what is globally the first financial services institution offering of the WU Transfer Service on all three channels - branch, mobile and Internet, according to Absa COO Alfie Naidoo.
The WU Money Transfer service is a cash-to-cash, person-to-person transaction that can be facilitated at selected Absa branches, or via cellphone (WAP only), or Internet banking, according to Absa.
Not PayPal
PayPal describes its service as the ability to send and receive payments through the Internet.
According to Absa's GM of retail international banking Bronwynne Rennie, this is the key difference between PayPal and Absa's WU money transfer service.
“This service was never in line with PayPal. PayPal deals with payment and we deal with remittances.”
World Cup initiative?
Naidoo says the rollout of Absa's service has no connection to the World Cup. “It's part of a broader strategic roadmap. There may be some take-up from the World Cup, but it's the sustainable post-World Cup that we're worried about.”
ICT analyst at Frost & Sullivan Protea Hirschel says there are many migrants in SA from other parts of the continent who already make use of existing WU channels and other similar money transfer businesses for sending their remittances back home.
She says the problem for this service is that cellphone and Internet transfer users have to have an account with Absa.
“That already cuts out some existing Western Union customers, who do not qualify for a South African bank account because they are technically not allowed to work here, or receive income. I am thinking of the Zimbabwean guy who sold us a little beaded porcupine, but is going back home in a month's time, for example. Nonetheless, it may be a nice value-added service for Absa customers, but I would think that initial uptake will be slow.”
“The security risks involved are really no different to ordinary banking. Consumers already make use of Internet channels on PCs or indeed from their mobile phone, which may be subject to, for example, phishing attacks, which can compromise the security of users' personal information and their money.”
Share