Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      South Africa begins complex job of overhauling media laws

      13 July 2025

      Nvidia CEO to hold high-stakes media briefing in Beijing

      13 July 2025

      Blue Label Telecoms to change its name as restructuring gathers pace

      11 July 2025

      Get your ID delivered like pizza – home affairs’ latest digital shake-up

      11 July 2025

      EFF vows to stop Starlink from launching in South Africa

      11 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025

      Grammarly acquires e-mail start-up Superhuman

      1 July 2025

      Apple considers ditching its own AI in Siri overhaul

      1 July 2025
    • In-depth

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025
    • TCS

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025
    • Opinion

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Could cellphones finally bring about the cashless society?

    Could cellphones finally bring about the cashless society?

    By Editor1 September 2009
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    John Campbell and Herman Singh

    Futurists have long prophesied the death of cash. Despite this, banknotes and coins still predominate in retail transactions. However, cash’s demise may finally be on the horizon — thanks to cellphones.

    A number of companies are developing solutions that turn cellphones into full-blown electronic wallets that can be used at points of sale to make retail purchases. Could cash finally be on its way out?

    Nokia, the world’s largest manufacturer of mobile handsets, recently announced it will launch a service enabling people to make financial transactions with their cellphones next year. Known as Nokia Money, it will allow people to transfer money to one another electronically over the air. Consumers will also be able to use Nokia Money to make purchases at retailers.

    But the Finnish cellphone giant isn’t the only company investing in what is expected to become a multibillion-dollar industry in the next few years. In fact, SA has become somewhat of a hotbed in development when it comes to mobile money.

    There are a number of SA companies that are developing solutions in this area. JSE-listed Blue Label Telecoms has developed Ukash, Tradebridge has Pocit, and Standard Bank has Mimoney. There are others.

    Most of the services are aimed at the unbanked, typically younger people who do not have access to a credit card to pay for services online. There are only about 7m credit cards in issue in SA. Yet there are about 20m debit cards, most of which can’t be used for online purchases.

    The big banks, most notably Standard Bank, are also getting in on the game. Standard Bank has started a new division to focus on new opportunities in electronic banking. The bank’s Herman Singh (pictured above right), says the addressable market is huge.

    Standard Bank has launched a product called Mimoney that is aimed primarily at the unbanked youth market. “Even without a bank account, you can use Mimoney to make and receive payments and go shopping,” Singh says. “Young people account for over 60% of online traffic, but account for only 10% of online spend.”

    He says cellphone payment systems like Mimoney compete directly with card payments companies such as MasterCard and Visa, but are much cheaper to use. There are no fees associated with most Mimoney-based transactions, Singh says.

    “Why do you even need an ATM anymore? It’s ridiculous to convert digital cash into analogue cash. This definitely disrupts traditional banking business.”

    Standard Bank is experimenting with new business opportunities in electronic transactions, particularly in mobile. “The approach has been that if there is cannibalisation of the traditional bank, we will accept that and embrace the radical change that it brings,” Singh says.

    Mimoney has signed agreements with a range of online retailers and is close to concluding a deal with a national bricks-and-mortar retailer, Singh says. Clients include Ster Kinekor, MXit, eXactmobile and Mr Delivery.

    Mimoney business head John Campbell (pictured above left) says there is a “tremendous need” for young people to buy products online but they can’t do so because they don’t have credit cards. “The only barrier to transacting now is having access to a cellphone,” says Campbell.

    Though the product is available only in SA for now, there are plans to launch Mimoney in other African markets in 2010.

    How does it work? Campbell explains that if you go to Ster Kinekor, for example, you can select Mimoney as a payment option at the cinema’s kiosks. The system then asks for your cellphone number and Mimoney voucher number, which can either be pre-purchased at a Mimoney distributor, via electronic funds transfer, or automatically generated in the Mimoney cellphone application.

    Singh says Mimoney makes a profit on transactions that cost little as R1, though the company will accept payments costing as little as 1c.

    Consumers are able to convert regular money into Mimoney currency via Internet banking, at points of sale, self-service terminals, or at merchants’ premises. Mimoney can be used for payments online, at call centres and, soon, at physical stores.

    Standard Bank hopes to have signed up 1m Mimoney users within the next 12 months.  — Duncan McLeod, TechCentral



    Beyond Payments Blue Label Telecoms Herman Singh John Campbell Mimoney Nokia Pocit Standard Bank Ukash
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleIcasa councillors under fire in parliament
    Next Article Is Twitter pimping porn to family users?

    Related Posts

    Blue Label Telecoms to change its name as restructuring gathers pace

    11 July 2025

    Absa CEO Fihla to ditch ‘prison’ branches and revamp customer focus

    1 July 2025

    TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

    28 May 2025
    Company News

    $125-trillion traded: Binance redefines global finance in just eight years

    11 July 2025

    NEC XON welcomes HPE acquisition of Juniper Networks

    11 July 2025

    LTE Cat 1 vs Cat 1 bis – what’s the difference?

    11 July 2025
    Opinion

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.