24 June 2017
visit http://events.sap.com/gb/fsi-forum-2017/en/home

Masabi and Mi-Pay target developing world with m-payments system

30 July 2009  |  7612 views  |  0 iPhone on top of Keyboard

An SMS-based mobile payments system designed to work in remote regions of Africa with limited communications infrastructure has been launched by Masabi and Mi-Pay.

The partners say their Street Vendor application allows mobile operators, banks and other providers to offer their services in remote regions without additional investment in infrastructure or hardware, using the existing mobile phone base.

The technology works in any part of the world that has SMS reception, which means that unlike mobile operator-led payment services, it does not require new SIM cards to be issued or integration with local network infrastructure.

In addition, the application is compatible with many standard handsets, up to seven years old, and doesn't rely on smartphones or 3G and GPRS connectivity which are not always available in rural areas.

The application enables handsets to act as an electronic point of sale terminal, enabling street vendors to use their phones to offer people services such as international remittances, micro-loans and insurance.

According to Ben Whitaker, COO, Masabi, the system will allow mobile operators and retail providers to create new sales channels for services in areas with limited communications infrastructure and accessibility.

"A 'Street Vendor' with even old handsets can now offer international transaction and retail services to local consumers, without the need for vast technological infrastructure," says Whitaker.

For transactions, the handset communicates with a central server for authentication and approval over encrypted SMS in areas where other data connections are unavailable. The system complies with all international anti-fraud and money laundering guidelines, says Masabi.

Norman Frankel, CEO, Mi-Pay, adds: "In developing countries, such as those in Africa, where there is insufficient payments revenue to justify the capital expense of rolling bank branches out across large geographical areas, mobile initiated domestic financial services have the potential to transform the retail sector and, therefore, the economy as a whole."

Street Vendor is already live in Sudan with other roll-outs planned across the Middle East and North Africa.

Rapid adoption in the developing world will fuel a boom in mobile payments over the next three years, with global transaction volumes reaching $250 billion in 2012, according to a recent report from Arthur D Little.

In February the GSMA, which represents the interests of the worldwide mobile communications industry, and the Bill & Melinda Gates Foundation announced a programme that aims to expand the availability of financial services to millions of people in the developing world through mobile phones.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Visa launches Peru m-payments service; teams with NeuStar

Visa launches Peru m-payments service; teams with NeuStar

23 June 2009  |  7461 views  |  0 comments
Developing markets to drive m-payments growth

Developing markets to drive m-payments growth

24 April 2009  |  8310 views  |  0 comments
CGAP and Wizzit team on m-banking for South Africa's rural poor

CGAP and Wizzit team on m-banking for South Africa's rural poor

08 April 2009  |  8920 views  |  0 comments
Monitise sets up Indian unit; lines up investors

Monitise sets up Indian unit; lines up investors

13 March 2009  |  11141 views  |  0 comments
Zain targets 100 million East Africans with new m-banking service

Zain targets 100 million East Africans with new m-banking service

17 February 2009  |  9732 views  |  0 comments
Rwandan telco to launch m-banking service

Rwandan telco to launch m-banking service

12 January 2009  |  6079 views  |  0 comments
M-Pesa faces government audit

M-Pesa faces government audit

11 December 2008  |  10738 views  |  0 comments
Orange and BNP Paribas team on Ivory Coast mobile money transfer service

Orange and BNP Paribas team on Ivory Coast mobile money transfer service

04 December 2008  |  8547 views  |  0 comments
Banks and mobile operators form m-payments association

Banks and mobile operators form m-payments association

23 October 2008  |  11271 views  |  0 comments
Obopay and Grameen team on mobile banking initiative

Obopay and Grameen team on mobile banking initiative

06 August 2008  |  9656 views  |  0 comments
M-payments value to hit $300bn in 2013 - Juniper

M-payments value to hit $300bn in 2013 - Juniper

01 July 2008  |  7508 views  |  0 comments
Unbanked to drive mobile finance - study

Unbanked to drive mobile finance - study

17 June 2008  |  7962 views  |  0 comments
Monitise targets East African market with JV

Monitise targets East African market with JV

15 May 2008  |  9728 views  |  0 comments
Mobile banking projects launched in Africa and Latin America

Mobile banking projects launched in Africa and Latin America

07 May 2008  |  10157 views  |  0 comments
Mobile payments set to take off in developing world - Juniper Research

Mobile payments set to take off in developing world - Juniper Research

10 July 2007  |  11073 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.finastra.comvisit www.response.ncr.comvisit wavestone-advisors.co.uk

Top topics

Most viewed Most shared
Live: EBAday 2017, day twoLive: EBAday 2017, day two
9385 views comments | 4 tweets | 5 linkedin
Worldpay pilots app-only mPOS for small retailersWorldpay pilots app-only mPOS for small re...
9076 views comments | 18 tweets | 27 linkedin
Live: EBAday 2017, day oneLive: EBAday 2017, day one
8549 views comments | 3 tweets | 4 linkedin
UK banks will need to change one million sort codes under ring-fencing rulesUK banks will need to change one million s...
8080 views comments | 8 tweets | 25 linkedin
What Banks and their customers can expect for the futureWhat Banks and their customers can expect...
6962 views comments | 7 tweets | 10 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job