CAPE TOWN, South Africa, November 24 /PRNewswire/ -- Globally, mobile
banking will become three times more popular than traditional banking by 2011
and MXit, the mobile social network and instant messenger, is poised to offer
banks in Africa a safe, seamless transaction platform that eliminates entry
barriers like data costs and safety.
Jaco Hattingh, CEO for MXit Africa, predicts that in Africa, where there
are over 300 million adults with no access to financial services, there will
be a mass move from traditional banking services, that offer savings and
cheque accounts, to those that allow for person-to-person transactions
through mobile devices.
"According to Gartner, 73 million transactions are expected for 2009,
however there is room for further growth if we overcome challenges like
financial literacy in developing countries, as well as trust issues involved
with mobile technology and the related costs of accessing the internet via a
mobile phone," says Hattingh.
"This is where MXit comes in. The low data costs of operating a mobile
social network and instant messenger allows banks to deliver mobile banking
solutions that cost a fraction of the cost of normal data downloads through
traditional mobile internet platforms. We have proven that this can work
through the transactional platforms that we've provided on MXit for two of
South Africa's leading banks. We've offered First National Bank (FNB) and
Standard Bank clients the ability to do mobile banking solutions via MXit,"
continues Hattingh.
Any FNB account holder can purchase MXit Moola (MXit's virtual currency)
for friends and family in a cost effective and safe manner via the MXit
platform. Traditionally, Moola could only be purchased by means of a FNB
credit card or a premium rated SMS. The Standard Bank mimoney payment method
is for individuals who would like to transact on a website or mobi-site, but
do not have access to a credit card. mimoney clients can now buy MXit Moola
via mimoney without having to use a credit card.
These products are designed to meet the needs of the mobile savvy market.
40% of the South African population, even though it is considered the most
developed banking country in Africa, do not have access to a bank account.
"Mobile phones present an opportunity to provide quality banking
solutions for all. In developing countries like Africa, with a huge unbanked
market, innovative banking and payment services like these could provide the
first step towards breaking out of the poverty trap for low-income
individuals. While in developed markets it simply means convenience for an
increasingly mobile lifestyle," says Hattingh.
The challenges of increased access to mobile banking are clear - however
by working with platforms such as MXit these challenges can be overcome by
offering clients access to a cost effective mobile banking application that
is available anytime, anyplace. The mobile banking model is based on serving
all income groups: teenagers, students, business, high net worth individuals
and the informal sector are all able to access financial services via their
mobile phones
The banking industry's growth in the African informal market is further
aggravated by the tough anti-money laundering regulations set by governments
which require proof-of-identity documents to be presented at a bank branch.
Presenting these documents, in order to open an account, can often be
prohibitively expensive for low-income customers
"We believe that our transaction platform is an opportunity for all
developing markets, not only Africa. Currently there are 4 billion mobile
phones, but only 1.6 billion bank accounts. There is an enormous opportunity
to reach the unbanked by means of mobile banking that is driven by MXit's
transaction platform. Developing countries are short of both physical banks
and internet outlets, so banking from mobile phones is the logical solution,"
continues Hattingh.
The combination of mobile payment solutions, combined with the ease of
use, makes this the perfect solution for all individuals, across all income
groups.
"The ability to access money transfers, mobile communication, mobile
banking, mobile payments and the reduced risk of theft is an appealing
solution for individuals who want access to financial services without the
worry of going in to a branch or being PC-bound," says Hattingh.
"Banks and financial service institutions would do well to partner with
established mobile social networks like MXit, with a proven record in
developing business platforms for the banking sector - it will certainly
address the issue of cost as transacting on the MXit platform is relatively
free," concludes Hattingh.
MXit, with close to 17 million subscribers, has already secured its place
as the most popular mobile social network and instant messenger in Africa and
is currently on a massive expansion drive to secure its leadership in South
East Asia, Latin America and the Caribbean. Its growth and success is firmly
based on its ability to read global trends and develop the level of
innovation that has endeared it to its massive subscriber base.
About MXit
MXit is a free instant messaging and mobile social networking application
for both mobile phones and PCs. It allows members to chat to other MXit users
anywhere in the world. It also allows users to send text messages to and from
mobile phones and PCs using GPRS or 3G instead of using standard SMS
technology, which is expensive.
The social networking element of the business is the cornerstone of its
growth. MXit is a new generation company that boasts just over 17 million
members globally and is growing by 20, 000 and 28,000 users per day - while
processing 250 million messages per day. It is in constant evolution to match
the needs of its users and is set on becoming one of the biggest instant
messaging mobile networks in the world and the preferred mobile social
network for communicating with young people in South East Asia, Latin
American, Africa and globally.
The company introduced mobile instant messaging to South Africa. It
started as a mobile game developer and evolved into a mobile instant
messaging company, allowing its users to send messages at a fraction of the
cost of traditional SMS.
To download MXit: Open your mobile browser, type in
http://www.mxit.com/wap and simply follow the prompts.
Issued by:
FD Beachhead
Sandra Sampayo, +27(0)79-167-6863 or +27(0)21-487-9000,
sandra.sampayo@fd.com
Jean Dennis, +27(0)83-500-5302 or +27(0)21-487-9000, jean.dennis@fd.com
SOURCE MXit
