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Safaricom hits banks with new M-Pesa transfer fees
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TheGeek
#1 Posted : Thursday, August 27, 2015 9:38:09 AM
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http://www.businessdaily.../1/-/22d6pl/-/index.html
In the world of securities, courage and patience become the supreme virtues after adequate knowledge and a tested judgment are at hand.
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alotoftalk
#2 Posted : Thursday, August 27, 2015 4:13:13 PM
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Location: Harare
This is abuse of dominance.

Why would Safaricom introduce high tariff barriers in situations where the financial service providers want to broaden the options available to both bank and M-Pesa customers? Is it because the transactions are done beyond it's ecosystem?

Bank to many M-Pesa users transfers is a service that can be used for example for payroll management and surely Safaricom cannot provide this service as no corporates operate accounts similar to either current or business accounts on the M-Pesa platform and therefore there is limitation on the amounts which can be transferred other than through linking it through banks.

KBA should get an MVNO license and form a company similar to the legacy MasterCard (an alliance of financial services providers) and create a mobile money system.

Their mobile money system should be an alliance of all the banks in Kenya, with agents located at all bank halls, agency banking locations and all possible avenues including supermarkets.

They should then create and end-to-end product that provides seamless experience across cards,mobile banking,internet banking and brick-mortar banking.

They have the opportunity to create a real "my bank is everywhere" experience by bypassing the shortcomings M-Pesa has due to Safaricom not owning a banking license.

I believe the market capitalisation of all banks combined is higher than that of Safaricom the current dominant player, and therefore they have the muscle to push such a formidable alternative.

The other option is an anti-trust lawsuit against Safaricom.
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Bykhovets
#3 Posted : Thursday, August 27, 2015 4:31:17 PM
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Joined: 5/17/2014
Posts: 231
alotoftalk wrote:
This is abuse of dominance.

Why would Safaricom introduce high tariff barriers in situations where the financial service providers want to broaden the options available to both bank and M-Pesa customers? Is it because the transactions are done beyond it's ecosystem?

Bank to many M-Pesa users transfers is a service that can be used for example for payroll management and surely Safaricom cannot provide this service as no corporates operate accounts similar to either current or business accounts on the M-Pesa platform and therefore there is limitation on the amounts which can be transferred other than through linking it through banks.

KBA should get an MVNO license and form a company similar to the legacy MasterCard (an alliance of financial services providers) and create a mobile money system.

Their mobile money system should be an alliance of all the banks in Kenya, with agents located at all bank halls, agency banking locations and all possible avenues including supermarkets.

They should then create and end-to-end product that provides seamless experience across cards,mobile banking,internet banking and brick-mortar banking.

They have the opportunity to create a real "my bank is everywhere" experience by bypassing the shortcomings M-Pesa has due to Safaricom not owning a banking license.

I believe the market capitalisation of all banks combined is higher than that of Safaricom the current dominant player, and therefore they have the muscle to push such a formidable alternative.

The other option is an anti-trust lawsuit against Safaricom.


Already being done.

http://www.businessdaily...-/12yjgshz/-/index.html

The move comes at a time when banks are working on a mobile phone-based payment system called Real Time Interbank Switch.

The lenders are promoting it as “an interbank mechanism to enable inter-operability across Kenya Bankers Association (KBA) members for all retail payment streams.”

The bankers are marketing the system as a platform that “will be much cheaper” for their customers to transact compared to M-Pesa.

The KBA platform is also seeking to eliminate the need for banks to use M-Pesa in the business-to-consumer transactions and by extension bring competition in the mobile cash transfer sector and reduce the cost of sending money.

The KBA has said that while it costs Sh55 to send and Sh49 to withdraw Sh2,700 on M-Pesa, the bankers’ system will charge Sh20 for a similar transaction.
"Occasionally I drop a tea cup to shatter on the floor. On purpose. I am not satisfied when it does not gather itself up again. Someday perhaps that cup will come together."
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murchr
#4 Posted : Thursday, August 27, 2015 4:35:24 PM
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Joined: 2/26/2012
Posts: 15,980
alotoftalk wrote:
This is abuse of dominance.

Why would Safaricom introduce high tariff barriers in situations where the financial service providers want to broaden the options available to both bank and M-Pesa customers? Is it because the transactions are done beyond it's ecosystem?

Bank to many M-Pesa users transfers is a service that can be used for example for payroll management and surely Safaricom cannot provide this service as no corporates operate accounts similar to either current or business accounts on the M-Pesa platform and therefore there is limitation on the amounts which can be transferred other than through linking it through banks.

KBA should get an MVNO license and form a company similar to the legacy MasterCard (an alliance of financial services providers) and create a mobile money system.

Their mobile money system should be an alliance of all the banks in Kenya, with agents located at all bank halls, agency banking locations and all possible avenues including supermarkets.

They should then create and end-to-end product that provides seamless experience across cards,mobile banking,internet banking and brick-mortar banking.

They have the opportunity to create a real "my bank is everywhere" experience by bypassing the shortcomings M-Pesa has due to Safaricom not owning a banking license.

I believe the market capitalisation of all banks combined is higher than that of Safaricom the current dominant player, and therefore they have the muscle to push such a formidable alternative.

The other option is an anti-trust lawsuit against Safaricom.


There are so many money transfer applications that banks and others can use if they dont like what safaricom is doing. No one has been forced to use safaricom
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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instinct
#5 Posted : Thursday, August 27, 2015 4:43:25 PM
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Joined: 8/17/2007
Posts: 294
The move comes at a time when banks are working on a mobile phone-based payment system called Real Time Interbank Switch.

The lenders are promoting it as “an interbank mechanism to enable inter-operability across Kenya Bankers Association (KBA) members for all retail payment streams.”

The bankers are marketing the system as a platform that “will be much cheaper” for their customers to transact compared to M-Pesa.

The KBA platform is also seeking to eliminate the need for banks to use M-Pesa in the business-to-consumer transactions and by extension bring competition in the mobile cash transfer sector and reduce the cost of sending money.

The KBA has said that while it costs Sh55 to send and Sh49 to withdraw Sh2,700 on M-Pesa, the bankers’ system will charge Sh20 for a similar transaction.

>>>>Therein lies the problem..
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murchr
#6 Posted : Thursday, August 27, 2015 5:00:41 PM
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Joined: 2/26/2012
Posts: 15,980
instinct wrote:
The move comes at a time when banks are working on a mobile phone-based payment system called Real Time Interbank Switch.

The lenders are promoting it as “an interbank mechanism to enable inter-operability across Kenya Bankers Association (KBA) members for all retail payment streams.”

The bankers are marketing the system as a platform that “will be much cheaper” for their customers to transact compared to M-Pesa.

The KBA platform is also seeking to eliminate the need for banks to use M-Pesa in the business-to-consumer transactions and by extension bring competition in the mobile cash transfer sector and reduce the cost of sending money.

The KBA has said that while it costs Sh55 to send and Sh49 to withdraw Sh2,700 on M-Pesa, the bankers’ system will charge Sh20 for a similar transaction.

>>>>Therein lies the problem..


I don't see how this can be a threat because after all the end user wants money in his mobile wallet.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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enyands
#7 Posted : Thursday, August 27, 2015 5:16:15 PM
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Joined: 12/25/2014
Posts: 2,300
Location: kenya
murchr wrote:
instinct wrote:
The move comes at a time when banks are working on a mobile phone-based payment system called Real Time Interbank Switch.

The lenders are promoting it as “an interbank mechanism to enable inter-operability across Kenya Bankers Association (KBA) members for all retail payment streams.”

The bankers are marketing the system as a platform that “will be much cheaper” for their customers to transact compared to M-Pesa.

The KBA platform is also seeking to eliminate the need for banks to use M-Pesa in the business-to-consumer transactions and by extension bring competition in the mobile cash transfer sector and reduce the cost of sending money.

The KBA has said that while it costs Sh55 to send and Sh49 to withdraw Sh2,700 on M-Pesa, the bankers’ system will charge Sh20 for a similar transaction.

>>>>Therein lies the problem..


I don't see how this can be a threat because after all the end user wants money in his mobile wallet.



True banks will need mobile network companies to do their transaction .people have mobile phones because of mobile networks like safcom and the rest. They dont have cellphones to do bank transfers.banks will still need these companies and their networks to do bank businesses unless banks Gang up and come with their own mobile company like the way equity has been prudent in doing though partially with airtel.otherwise the green monster will still the the big guy in the game
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TheGeek
#8 Posted : Thursday, August 27, 2015 5:22:52 PM
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Joined: 7/3/2014
Posts: 245
alotoftalk wrote:
This is abuse of dominance.

Why would Safaricom introduce high tariff barriers in situations where the financial service providers want to broaden the options available to both bank and M-Pesa customers? Is it because the transactions are done beyond it's ecosystem?

Bank to many M-Pesa users transfers is a service that can be used for example for payroll management and surely Safaricom cannot provide this service as no corporates operate accounts similar to either current or business accounts on the M-Pesa platform and therefore there is limitation on the amounts which can be transferred other than through linking it through banks.

KBA should get an MVNO license and form a company similar to the legacy MasterCard (an alliance of financial services providers) and create a mobile money system.

Their mobile money system should be an alliance of all the banks in Kenya, with agents located at all bank halls, agency banking locations and all possible avenues including supermarkets.

They should then create and end-to-end product that provides seamless experience across cards,mobile banking,internet banking and brick-mortar banking.

They have the opportunity to create a real "my bank is everywhere" experience by bypassing the shortcomings M-Pesa has due to Safaricom not owning a banking license.

I believe the market capitalisation of all banks combined is higher than that of Safaricom the current dominant player, and therefore they have the muscle to push such a formidable alternative.

The other option is an anti-trust lawsuit against Safaricom.


Equitel to the rescue.
In the world of securities, courage and patience become the supreme virtues after adequate knowledge and a tested judgment are at hand.
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alotoftalk
#9 Posted : Thursday, August 27, 2015 7:46:45 PM
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murchr wrote:

There are so many money transfer applications that banks and others can use if they dont like what safaricom is doing. No one has been forced to use safaricom


Safaricom has dominated the market. In essence you are "forced" to use M-Pesa because most of the people you transact with are on M-Pesa and there are tariff barriers which discourage the use of other applications seamlessly with the M-Pesa platform.

Without the punitive barriers and restrictions then their dominance wouldn't count.

My main bone of contention is why they are discouraging services which they cannot offer without partnerships with banks. They either get a banking license and compete at that level or remove punitive tariffs.
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murchr
#10 Posted : Thursday, August 27, 2015 8:00:05 PM
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Joined: 2/26/2012
Posts: 15,980
alotoftalk wrote:
murchr wrote:

There are so many money transfer applications that banks and others can use if they dont like what safaricom is doing. No one has been forced to use safaricom


Safaricom has dominated the market. In essence you are "forced" to use M-Pesa because most of the people you transact with are on M-Pesa and there are tariff barriers which discourage the use of other applications seamlessly with the M-Pesa platform.

Without the punitive barriers and restrictions then their dominance wouldn't count.

My main bone of contention is why they are discouraging services which they cannot offer without partnerships with banks. They either get a banking license and compete at that level or remove punitive tariffs.


No one has forced you to use safcom you choose to use it because of the conveniences that come with it. And that my friend is what you are paying for. You can always opt to use the other alternatives. This dominance debate is utter rubbish
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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ngapat
#11 Posted : Thursday, August 27, 2015 8:18:02 PM
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The banks should start by cancelling the linking of bank accounts to mpesa.
Then they can combine together and start their own network or mvno since people want money on their mobiles
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bird_man
#12 Posted : Thursday, August 27, 2015 8:30:51 PM
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Posts: 1,206
Location: Nairobi
ngapat wrote:
The banks should start by cancelling the linking of bank accounts to mpesa.
Then they can combine together and start their own network or mvno since people want money on their mobiles

Why do you need money in your mobile?
All you need is to know my bank account/cell phone number and using your phone transfer money to my account.I go to the shopkeeper and transfer to his account.I also send to my mums account etc....

I dont think you need it on your mobile wallet.
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murchr
#13 Posted : Thursday, August 27, 2015 8:36:12 PM
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ngapat wrote:
The banks should start by cancelling the linking of bank accounts to mpesa.
Then they can combine together and start their own network or mvno since people want money on their mobiles


Good luck with that
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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sparkly
#14 Posted : Thursday, August 27, 2015 8:44:01 PM
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murchr wrote:
ngapat wrote:
The banks should start by cancelling the linking of bank accounts to mpesa.
Then they can combine together and start their own network or mvno since people want money on their mobiles


Good luck with that


If Safaricom is broken into Communications and Mpesa and Mpesa gets a Banking licence, the banks with their nyef nyef will be toast.
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watesh
#15 Posted : Friday, August 28, 2015 8:46:21 AM
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murchr wrote:
ngapat wrote:
The banks should start by cancelling the linking of bank accounts to mpesa.
Then they can combine together and start their own network or mvno since people want money on their mobiles


Good luck with that

Hahaha banks need mpesa more than mpesa needs them. Remember mpesa started and grew without any help from a bank.
One strategy they can employ is bill payments from your mobile or online. A number of people get salaries into their bank accounts, bypass safaricom and get a payment platform that is efficient and easy to use.
Am waiting for Equitel to introduce DSTV, KPLC prepayments and others and my mpesa usage will drop by 80%
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murchr
#16 Posted : Friday, August 28, 2015 2:27:36 PM
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sparkly wrote:
murchr wrote:
ngapat wrote:
The banks should start by cancelling the linking of bank accounts to mpesa.
Then they can combine together and start their own network or mvno since people want money on their mobiles


Good luck with that


If Safaricom is broken into Communications and Mpesa and Mpesa gets a Banking licence, the banks with their nyef nyef will be toast.


Matiang'i was being over ambitious believe me, that will not happen and if it were it wouldn't be without a fight. Mpesa just like mastercard or visa will not get a banking license.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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doubletap
#17 Posted : Friday, August 28, 2015 5:39:38 PM
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Think it would be much easier if the banks made an app that is linked to your phone no for individuals and a registered no for companies which is then connected to your bank account just like your ATM card. Then every transaction is from your account and payment is directly to your account. Using a security app every transaction is verified. If the app is then owned by all the banks and institutions that require financial services and run as a private entity. A service provider. If you need physical cash there are ATM's or bank agents kila mahali.
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Mike Will
#18 Posted : Friday, August 28, 2015 7:33:52 PM
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doubletap wrote:
Think it would be much easier if the banks made an app that is linked to your phone no for individuals and a registered no for companies which is then connected to your bank account just like your ATM card. Then every transaction is from your account and payment is directly to your account. Using a security app every transaction is verified. If the app is then owned by all the banks and institutions that require financial services and run as a private entity. A service provider. If you need physical cash there are ATM's or bank agents kila mahali.


What exactly does your solution propose to solve? And why would it succeed where credit cards have failed? d'oh!
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vickip
#19 Posted : Friday, August 28, 2015 7:39:58 PM
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i think its is very risky especially for those investors who are very establish because then they have to worry on how secure their money is since the risk of hackers using phone numbers to get your money increases
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XSK
#20 Posted : Saturday, August 29, 2015 9:43:42 AM
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In the money transfer business, the higher the number of players the better for us. Let the banks NOT fight Safaricom rather develop their own solution. The customers will find the best solution and use. The motto should be LIVE and LET LIVE
You will know that you have arrived when money and time are not mutually exclusive "events" in you life!
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