Absa sends mobile money abroad

Absa Bank and payment services business Western Union (WU) today rolled out a mobile money transfer service that enables international transfers.

After a successful pilot, the duo 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.

“Our approach to financial services is driven by innovation,” says Naidoo.

Khalid Fellahi, WU's senior VP for Africa and global head of Mobile Transactions Services, says: “Our experience with customers in 200 countries and territories around the world has shown the need to ease the movement of funds. We believe the new service adds value to an accelerated lifestyle pace and the growing mobility of labour worldwide.”

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.

Using this service, customers can send and receive money or cancel a transaction. A charge is levied but will be shown to the sender before the transaction is begun. The transaction will only go through once the sender agrees to the levy. The international transfer then takes a few minutes but this is subject to hours of operation and time zone differences, says Absa.

A maximum amount of R30 000 per transaction is allowed, or the sender's normal Internet or cellphone banking limit, whichever is lower, says the bank.

Head of Absa innovation and special projects Paolo Zambonini says every citizen, whether with Absa or not, can go to a branch and do a cash-to cash transfer. However, to be able to make use of Internet or cellphone banking, they must have an Absa account, he explains.

Fellahi says telecoms operators have tried things like m-wallets but banks are in the best position to provide these services.

In terms of security, regional director of Southern and East Africa for WU Karen Jordaan says: “Customers go through security and it's there to protect customers and organisations.” She adds that there is transparent screening for customers.

“It had to happen in South Africa. It had to happen in Africa, but in South Africa especially. We have seen in recent years electronic channels become more and more accessible to parts of the population that were limited before,” says Fellahi.

He adds that the explosion of the mobile phone has helped this, saying that previously cellphones were used only for communicating but now enable a wide range of value-added services providing a platform for mobile money.

“Mobile phones are ubiquitous already in SA. South Africans use mobile phones more than any other device. It's a clear way that we are allowing the unbanked to get into banking and initiate cross-border transfers,” says Zambonini.

He explains that cross-border transfers are normally onerous, require a lot of paperwork and take long periods of time to execute, but now only take one or two minutes with Internet and cellphone banking.

Fellahi adds that this service is especially helpful to people who are forced to travel a great distance to get into branches to transfer money. “Now people can just sit on their sofas and transact through the Internet.”

“It's about extending the Net to bring in as many people as possible,” says Naidoo.

Money may only be sent via the service under the following conditions: “Earnings of foreign nationals temporarily resident in South Africa; gifts other than to charitable, religious, cultural or educational organisations; alimony payments in terms of a court order,” says Absa.

There are also restrictions for money being received in SA via the service. Money can only be received if customers are “foreign tourists visiting South Africa, receiving funds from abroad relating to their visit; foreign students studying in South Africa, receiving funds from abroad to pay for their living expenses, tuition, books, etc; earnings of SA residents temporarily abroad; monetary gifts received from abroad,” adds the bank.

GM of retail international banking at Absa Bronwynne Rennie explains that as an authorised dealer, Absa has to subscribe to the regulations of the Reserve Bank and this is the reason for the conditions.

Fellahi adds that satisfying the requirements of the regulator is what makes the services successful. “We work with the regulator in any provisions they may have.”