MTN has partnered with the South African Bank of Athens and two retailers to bring SA a low-cost banking solution that requires only a South African ID number and a cellphone.
Following in the footsteps of first mobile operator Vodacom, which partnered with big four bank Nedbank about two years ago, MTN and the Bank of Athens have allied with local retailers Pick 'n Pay and Boxer Stores to bring a mobile bank to SA.
Operated by TYME (Take Your Money Everywhere) - a distribution channel of the Bank of Athens - Mobile Money went live yesterday. The solution is SA's first mobile-only bank and allows customers to make payments, transfer funds to other users, buy prepaid services (such as airtime and electricity), pay for groceries and withdraw cash (at Pick 'n Pay and Boxer branches), all via USSD.
Brian Gouldie, chief consumer sales officer at MTN SA, says Pick 'n Pay and Boxer Stores have a mass reach throughout SA, ensuring the service is widely available. Pick 'n Pay and Boxer Stores are the first retailers in SA to accept mobile deposits, withdrawals and payments.
Darryl Adriaanzen, executive director at the Bank of Athens, says the financial institution - which is primarily focused on banking services for the medium-sized business market in SA - believes Mobile Money will be a "compelling alternative" in the local banking market.
Mobile Money works via SMS, which means even South Africans with the most basic of cellphones can sign up for the service. MTN says customers can access Mobile Money services by dialling *120*668# and completing the registration process.
"Upon registering, a customer can deposit up to R5 000 per single transaction to a maximum account balance of up to R25 000. Users can access their funds immediately; buy airtime or prepaid electricity, deposit or withdraw cash, send money and pay for their shopping at Pick n Pay and Boxer stores from a drop-down menu on their mobile phones."
The service is available over any cellular network, but is free to MTN customers. MTN says minimal transaction fees are applicable to certain services for non-MTN customers.
Mobile money precursor
MTN's Mobile Money is similar to Vodacom's M-Pesa solution, which has struggled to gain traction in SA since being introduced to the local mobile market in 2010.
While M-Pesa has flourished in other African countries like Tanzania and Kenya, less than 3% of SA's mobile market was using the service two years down the line.
Earlier this year, former Vodacom CEO Pieter Uys said the operator would not abandon its mobile money solution - despite poor uptake.
Serame Taukobong, chief marketing officer at MTN SA, says the operator has evolved insights gained from a pilot project that was undertaken with the assistance of Oltio, a mobile-centric payments and financial services company.
"MTN is certain that in the near future, a mobile device will be integral in building a society that carries no cash, but can transact through a mobile device."
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