|
BoN Gives Green Light to Mobile Bank
Windhoek, Sep 02, 2010 (New Era/All Africa Global Media via COMTEX) --
Bank of Namibia has given authorisation to a new banking system that uses mobile phones as the virtual bank. The system, operated by local company Mobicash Payment Solutions, allows users to pay for goods as well as transfer money to each other using mobile phones.
First things first though: A person must first register with Mobicash at registered agents and deposit money in cash. The deposit of money is equivalent to depositing money into a bank account, only in this case, the money is virtually deposited on the cellphone and the depositor would instantly receive notification on the cellphone.
It is from this point onward that the client is able to start making payments, transferring money to others, buying airtime and electricity units.
"We are putting up a huge network of agencies and participating shops through retails, service stations and some of the big corporate companies with presence in the region," says Amos Shiyuka of Mobicash Payment Solutions.
Payments for pre-paid airtime and electricity are available through simple steps on the phone and the system is compatible with all three mobile networks, MTC, leo and Telecom's Switch.
People can also transfer money to each other, where in case the recipient of the money is not registered, the nearest Mobicash agency would contact the person to come in and receive the money.
Mobicash Payment Solutions received the certificate of authorisation from Bank of Namibia on August 24.
Shiyuka says this new solution is ideal for rural areas and those with limited access to banking services.
"The convenience and cost factors are a major advantage. Unlike with conventional banks, we do not charge deposit fees and clients can make use of the entire amount of money they have put in their account," says Shiyuka.
Worldwide, the concept has been hailed as a success, especially for those without access to conventional banking systems.
The reserve bank, when granting the certificate of authorisation, described Mobicash Payment Solutions as "a truly innovative solution towards promoting financial inclusion to cover the unbanked and under banked population in Namibia".
Bank of Namibia says half of the Namibian adult population has limited access to basic financial services and predominantly lives in rural areas, with very little access to basic financial services such as payment facilities.
There is also very little incentive for conventional banks to venture into services for those with little access to banking services.
"The extensive costs of establishing branch networks and other problems related to banking further compounded these problems and obstructs the penetration and reach of conventional banks into remote areas," noted the Bank of Namibia in giving the certificate of authorisation to Mobicash Payment Solutions.
It is because of these challenges, says the Bank of Namibia, a decision was made to approve and grant a certificate of authorisation.
"The public is therefore notified that, Mobicash Payment Solution is now permitted to engage in mobile payment services with any person in Namibia, especially providing person-to-person and utility payments, airtime and electricity, services," says Bank of Namibia.
[ Back To greentechnologyworld.com's Homepage ]
|
