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eWallet spend breaks R10bn mark

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 29 May 2014
FNB aims to grow its mobile money solutions, thanks to SA's high cellphone penetration.
FNB aims to grow its mobile money solutions, thanks to SA's high cellphone penetration.

First National Bank (FNB) has announced that over R10 billion has been transferred using its mobile money solution, eWallet, since introducing the platform locally in 2009.

According to the bank - one of SA's big four - R5.3 billion, which equates to 53% of the R10 billion, was sent between May 2013 and April this year, "proving that mobile money is fast becoming an accepted replacement for person-to-person cash payments".

Yolande Steyn, CEO of eWallet Solutions at FNB, says the company has seen "strong growth" in its solution across SA. "This proves the growing need to send money easily and instantly to anyone in the country."

FNB says its eWallet consumer service accounts for the majority of sends at R8.7 billion, while its newer business solution eWallet Pro - which allows companies to pay the "unbanked" through their cellphone number or a prepaid card - is also starting to see increased adoption.

Usage patterns

The bank notes Gauteng has the highest percentage of people sending and receiving money through eWallet, at 46%; with KwaZulu-Natal at 14%, and the Eastern Cape at 11%.

Steyn says: "We find that main urban centres tend to have higher usage because of population density and the fact that people use an eWallet for reasons other than sending money home, such as paying friends or purchasing airtime."

However, says FNB, it is outside main cities that the impact of using an eWallet for remittance is evident, with money being withdrawn in outlying areas such as Butterworth, in the Eastern Cape, and Hoedspruit, in Limpopo.

Steyn notes the bank will look to grow its mobile money solutions, owing to high cellphone penetration in SA.

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