THE use of cellphones as an alternative means of payment to cash is set to rise significantly in coming years. This will be a major boost particularly for banks that are keen to penetrate the unbanked market.
KPMG said in a recent report that this new form of payment would have wide implications and benefits for developing economies. Its benefits would be transformational, particularly for developing economies, such as SA, which have large sections of their population who are either under- banked or unbanked.
SA has more than 11-million people without access to financial services, and the big four are promoting cellphone banking solutions to penetrate this market.
"In every market, mobile payments stand to take the place of cash," said KPGM in a report based on a recent global online survey of 970 companies.
The most successful cellphone venture launched so far in Africa is the M-Pesa service by Safaricom in partnership with its UK-based parent Vodafone. It was launched in March 2007 and now has more than 9,5-million subscribers using the service to make person-to-person money transfers. More: http://bit.ly/oZyWQ8