Last month at the Open Africa Innovation summit in Nairobi which was hosted by Nokia and World Bank group, subject matter experts, innovators, technology providers ,policy / regulators and other stakeholders gathered at the Safari Park Hotel to evaluate the challenges of mobile innovation in Africa ,celebrate the success stories and work towards replicating the same across Africa.
Despite the good country delegate representations across many African nations, Europe and Asia, all the participants agreed that indeed mobile innovation has taken root in East Africa and most especially Kenya.
It is beyond doubt that mobile based programs and innovations are opening opportunities for cross selling opportunity for Kenya as a Nation.
Kenya is attracting tech investments, hubs, researchers and also MPESA tourist to the country on a consistent basis.
MPESA is indeed a phenomenal and worth taking a look at.
It is available everywhere and anywhere. There is even a joke that the policemen now receive their brides via mobile money in Nairobi.
I visited a midsized shopping complex about eight months ago in Kenya and it had only 2 agents that were transacting MPESA but on the recent visit, the service is now available in 38 stores in same shopping complex with only 2 stores left! That is contagion effect of mobile financial services in Nairobi.
I visited a midsized shopping complex about eight months ago in Kenya and it had only 2 agents that were transacting MPESA but on the recent visit, the service is now available in 38 stores in same shopping complex with only 2 stores left! That is contagion effect of mobile financial services in Nairobi.
While mobile money is Kenya’s wild child, use and adoption of card is also on the rise.
The Central Bank of Kenya data showed that the value of transactions made through plastic cards rose by 12 per cent last year, driven by rising consumer preference for cashless transactions with automated teller machine (ATM) cards accounted for transactions worth Sh577.9 billion last year, up from Sh517.3 billion between January and December 2010 while 2.5 million new cards were issued to Kenyans in 2011 to take the total in circulation to 10.1 million.
Incentive to go cashless
For customer to go with less cash, he must understand the value proposition, experience the convenience and be well educated about the services so that His attempt to go with less cash will not result to lost cash.
Incentive to go cashless
For customer to go with less cash, he must understand the value proposition, experience the convenience and be well educated about the services so that His attempt to go with less cash will not result to lost cash.
Merchants’ transactions may hold the key to unleashing the potentials of e-money in any economy but the merchants must see value in terms of turnaround time to get the physical cash to restock or ability to spend same e-money to stock inventory.
Transaction cycle time
The spread, use of service and ecosystem development will determine how successful e-money adoption will be in any country.
Transaction cycle time
The spread, use of service and ecosystem development will determine how successful e-money adoption will be in any country.
If a quick serve restaurant collects e-money at Point of sale but will require to wait for 2 -3 days for the amount to get to his account and withdraw cash to restock, then e-money adoption will be limited to merchants that are able to afford the 2- 3days transaction date cycle time.
These are underlying issues that were dealt with in the early days of less cash in East Africa.
Reporting customer adoption
East African mobile money providers consistently provided the primary data of customer base, frequency of use, adoption rate and other information to enable further study of the ecosystem.
Reporting customer adoption
East African mobile money providers consistently provided the primary data of customer base, frequency of use, adoption rate and other information to enable further study of the ecosystem.
While some Nigerian financial institutions and licensed mobile money providers are making strides in signing customers and improve transaction volumes in the early days of slow moving and low value mobile money services, almost all the providers are shy to declare customer base and frequency of use aside Pagatech that celebrated crossing the 100,000 customers some days ago.
According to The GSM Association (GSMA) 80 percent of global transactions originated from East African countries, Several factors can explain the success of mobile payment systems in East Africa, including a legal frame supporting innovation and a powerful distribution network.
This trend can be noticed in Kenya, Tanzania, Uganda and Rwanda. Moving into ‘Less Cash’ economy can only be a function of innovation and not legislation.
This trend can be noticed in Kenya, Tanzania, Uganda and Rwanda. Moving into ‘Less Cash’ economy can only be a function of innovation and not legislation.
Promoting less cash in Nigeria and imposing penalties at certain transaction threshold will not deter people that do not understand other options that are available which are more secured than carrying cash.
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