Just discovered the MWallet and it’s just the most brilliant shopping and life administration mechanism. I could potentially avoid paying my electricity bill at the Municipality offices (which has horribly early closing hours) and pay from the comfort of my home. I have to admit I’m excited about this development.
Working in academic circles,you start to feel the need to define everything, even the MWallet. Online mobile software and games shop, Handango defines the MWallet as “an electronic wallet to store your confidential information related to Bank Accounts, Credit Cards, Insurance Policies, Memberships, passwords and more, securely”. The MWallet is able to do transactions for Visa, Mastercard, American Express,Discover Novus, JCB and Thawte cardholders. So whether it’s paying your bill, sending money to your child in university in another province or receiving your salary, now you can pick up your phone and at the touch of a button (literally) manage your money. With %50 of the population using mobile phones it’s easy to justify developing this technology, especially in countries in Asia, where electronic shopping has become a feature of every day life. No more counting notes.
Now you don't have to count piles of money, just press a button on your phone
I’m a little hesitant about the MWallet though. Earlier this year, I wrote about security problems with online media – a topic that’s obviously applicable here. What’s even more worrying is that cellphone theft happens so often (in fact I’ve had over 5 cellphones stolen in the past 6 years), that the idea of someone gaining access to your bank account simultaneously is horrifying. With the South African market just coming to grips with cellphone banking, is it really necessary to own an MWallet? What transactions does the MWallet offer that cellphone banking does not? Well, the MWallet offers inproved security features and can only be used on cellphones with 3GClearly, there are a few kinks in the system which may have to be worked out.
Several companies have invested in developing the MWallet including Fujitsu, Eskadanis and Obopay. In the UK, the MWallet is available from Handango at the price of 6.50€ (R71.5). The program is also available in the US, for the Blackberry and Samsung phones. US-based Obopay is the most affordable option. It only costs 10c to transfer money, and it’s free to withdraw or receive money. This is much cheaper than bank rates, especially in South Africa where an organisation which investigates consumer demands, the National Consumer Forum, is investigating claims that South Africa has the highest bank charges in the world.
Other than security issues, I’m hesitant about the viability of this technology in South Africa because of the limited market. 2004 statistics indicate that 18.7 million South Africans have (and use) their cellphones. However, a sizeable number of the population is illiterate and is unable to use the cellphon, for more advanced uses like banking transactions. In fact, in the small South AFrican town of Grahamstown, older people have trouble using an ATM never mind sophisticated technology like the MWallet, resulting in long qeues on payday. Is cellphone technology like the Mwallet a viable option for these sectors of the population?
The new media buzz is unavoidable. Almost every organisation and person has used a computer, communicated via e-mail or heard of some new gizmo or application that running the rounds. This is happening again the e-commerce world, with annual conferences developing internationally, such as the Verifone Retail Payments Conference. In this IT world, every thing is the new big thing. While the MWallet may not plan to revolutionise electronic payment methods, it’s a handy tool to have (provided you can afford it, and if your country allows you to access the service). Like most technology.
Cash Cow 