South African bank First National Bank (FNB)
and domestic low-cost airline Mango have teamed up to introduce a
service that enables consumers to pay for air tickets via their
mobile phone.
and domestic low-cost airline Mango have teamed up to introduce a
service that enables consumers to pay for air tickets via their
mobile phone.
The service is available to all FNB customers
including those with Mzansi accounts, a product focused on low
income, first-time banking consumers.
including those with Mzansi accounts, a product focused on low
income, first-time banking consumers.
The service harnesses FNB’s Cell Pay Point
(CPP) service introduced in February 2007 that enables FNB mobile
banking customers to pay for internet purchases via their mobile
phone. CPP does not require a user to disclose any personal banking
details and is free of bank charges. The maximum payment that can
be made is ZAR10,000 ($1,300).
(CPP) service introduced in February 2007 that enables FNB mobile
banking customers to pay for internet purchases via their mobile
phone. CPP does not require a user to disclose any personal banking
details and is free of bank charges. The maximum payment that can
be made is ZAR10,000 ($1,300).
“Mango is our largest merchant to sign up for
our Cell Pay Point offering and our first airline, giving our
mobile online payment solution a significant shot in the arm,” said
FNB Mobile and Transact Solutions’ CEO Len Pienaar.
our Cell Pay Point offering and our first airline, giving our
mobile online payment solution a significant shot in the arm,” said
FNB Mobile and Transact Solutions’ CEO Len Pienaar.
He added that since March the CPP service had
recorded average month-on-month volume growth of 400 percent.
recorded average month-on-month volume growth of 400 percent.
To use the service a user must select CPP as a
payment option on a merchant’s website and confirm their purchase
by entering a five-digit PIN, dubbed the MoPIN, on their mobile
phone. A text message is then sent to the customer confirming that
payment has been processed and showing the amount debited from his
or her account and a unique transaction reference number.
payment option on a merchant’s website and confirm their purchase
by entering a five-digit PIN, dubbed the MoPIN, on their mobile
phone. A text message is then sent to the customer confirming that
payment has been processed and showing the amount debited from his
or her account and a unique transaction reference number.
According to FNB its mobile banking service was
launched in March 2005 and broke even the same year.
launched in March 2005 and broke even the same year.
In the bank’s financial year to 30 June 2008
16.5 million transactions valued at a total of ZAR3 billion were
undertaken via the service representing increases of 95 percent and
118 percent, respectively, compared with 2006-07.
16.5 million transactions valued at a total of ZAR3 billion were
undertaken via the service representing increases of 95 percent and
118 percent, respectively, compared with 2006-07.
The primary growth driver is the purchase of
mobile phone prepaid airtime, noted FNB, and reflects the
significance of mobile banking as a key enabler of its strategy to
provide banking services to previously unbanked individuals.
mobile phone prepaid airtime, noted FNB, and reflects the
significance of mobile banking as a key enabler of its strategy to
provide banking services to previously unbanked individuals.
Given the high cost of establishing and
maintaining a physical banking infrastructure FNB predicts that it
will not be long before mobile banking becomes the most popular and
affordable banking channel in Africa.
maintaining a physical banking infrastructure FNB predicts that it
will not be long before mobile banking becomes the most popular and
affordable banking channel in Africa.
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