Archives For November 2012

Currently, banks and other financial institutions require the use of a separate authentication token or device (usually the customer’s mobile phone) for online transactions. As part of a partnership with Singapore’s Standard Chartered Bank, MasterCard has launched its next generation interactive card, which features an embedded display and touch-sensitive buttons, in the country.

This innovative two-in-one device by MasterCard, which combines the functionality of a standard payment card with a state-of-the-art security token, simply reflects the customer’s one time password (OTP).

The card looks physically exactly the same as a normal bank card but also features an LCD display and a keypad to help generate the OTP. This is particularly useful to combat ecommerce fraud as one needs the physical card.

Standard Chartered Bank’s V. Subba said: “In Singapore, many customers bank with multiple banks. We brainstormed on ways to make it convenient and yet secure for customers. The question was: instead of sending customers another bulky token, could we replace something which already exists in the customer’s wallet? That was when credit, debit and ATM cards, immediately came to mind.”

The card can also be used for viewing the balance on your account anywhere and anytime.

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Today we have decided to weview the mobile money transfer facility from Shoprite. Sending money through the Shoprite, Checkers, or Checkers Hyper Money Market counters is extremely fast, simple, and a reliable way to send and receive money. This service takes the hassle out of going to a bank and is extremely cost effective. Lets take a look…

How to register?

There is no “registration” needed, as all transactions are recorded each time. Having your ID document present is mandatory for the process for be completed.

How to send & receive money?

  1. Go to your nearest Shoprite Money Market counter with your SA ID book.
  2. Give the Money Market cashier the SA ID, the money you want to transfer and pay R9.99.
  3. You choose your secret PIN number and the cashier gives you a receipt with a money transfer reference number. That’s it. The money is transferred immediately.
  4. You send your secret PIN number and money transfer reference number to the person who needs to receive the money.

To receive the money is just as simple, The person who needs to receive the money takes his or her SA ID book, the money transfer reference number and PIN to any Shoprite Money Market counter to collect the money. Collecting the money is FREE.

Overall a great offering by a large retail group which is backed by Capitec. Shoprite Holdings adds value to their retail stores in a way which aids and assists their customers effectively. The process is simple, and cost effective, and a great way to send money.

Pro’s:

• Great for the man on the street, simple, walk-in walk-out process

• Transfers are instant

• No bank account needed to transact. Easy cash system at the money market points

• With a Shoprite/Checkers/Checkers Hyper around every corner, locating a money market counter wont be too much of a hassle

• The Vodacom network can be trusted for safety, security and consistency

• Costs only R9.99 per transaction

Con’s:

• Transactions are limited to operating hours of the retail store

• ID document must be present when sending or receiving money(driver’s license or passport will not be accepted)

• Money must be collected within 5 minutes of the transfer

A growing trend amongst consumers in the US, who have had enough of costly bank fees are closing their accounts and signing up for newly popular alternatives, customer-friendly prepaid debit cards and employee-payroll cards.

The market is growing rapidly and is expected to grow year on year by 20%. This growth would see values loaded onto debit cards more than double from $56.6 billion in 2010 to $106 billion by 2016. Payroll cards would see dollars loaded onto them more than triple, from $20.9 billion to $62.6 billion.

Many of the new cards have eliminated or reduced their activation, annual and monthly fees.

Meanwhile, usage of employer programs for payroll cards are “accelerating”. Employer programs with the largest pools of prospective cardholders include McDonald’s, Walmart and Walgreen. This is great for workers that have no bank accounts and in some cases employees can convert some payroll cards into prepaid debit cards.

Madeline Aufseeser, author of a study said “Since free checking is no longer abundant in the market, the opportunity for prepaid-debit and payroll-card sales to debanked or unhappy checking account consumers is growing,”

In a landmark deal between MasterCard Worldwide, Comviva Technologies and Tutuka, the three companies announced a massive strategic collaboration that combines Comviva’s mobiquity mobile payment platform, Tutuka’s prepaid processing platform and MasterCard’s global electronic payments network. This combination aims to further extend financial inclusion to millions of consumers across Africa.

The collaboration will enable mobile money platform providers to offer their customers prepaid MasterCard cards or Virtual Card Numbers (VCN) linked to their existing stored value accounts. These will enable customers to purchase goods and services at millions of physical and online retailers worldwide where MasterCard is accepted, as well as transfer funds and pay bills.

At present stored value accounts, managed primarily by mobile network operators offer services only to users within the operators network such as mobile top-up, bill payments, merchant payments, cash withdrawal and person-to-person payments. The new solution offered by this collaboration will be available to both Comviva’s existing and new mobile money implementations across Africa, with the potential to benefit over 750 million consumers across the continent.

The system works by linking the customer’s mobile number against a unique MasterCard Prepaid card, which will be issued to the consumer. This way the user of the card can top up this card via their phone.

This solution leverages Mastercard’s biggest asset, their worldwide network, to bring ubiquitous acceptance to mobile wallet consumers across Africa in an efficient and cost effective manner.”

According to MasterCard, Mobile Money addresses the needs of consumers in developing markets through a readily accessible device, the mobile phone. While only about half of the world’s households have bank accounts – and an even lower proportion in developing countries – seven out of 10 people worldwide have a mobile phone. According to Juniper Research, the combined market for all types of mobile payments is expected to reach more than $600B globally by 2013, double the current figure.

The collaboration is a result of a global initiative called the MasterCard Mobile Money Partnership Program launched by the company in February 2012. The objective of the program is to help more than 2.5 billion financially-underserved consumers worldwide gain access to formal financial services through their mobile phones. Tutuka is one of the latest organisations to support this program.

This is all part of MasterCard’s continual look at ways that it can help financially underserved consumers worldwide gain access to formal financial services. Thanks to Tutuka and Comviva this is now a possibility.

Weview Wednesday – FNB eWallet

Rowan —  November 21, 2012 — 1 Comment

Today we take a look at FNB’s eWallet; a service that allows FNB customers for send money to individuals around the country via their Cellphone number. The service is the simplest form of transferring money in a hurry if you’re an FNB client. To test the eWallet we selected the simple “send through Internet Banking to Cellphone” method, with the receiver withdrawing from any FNB ATM around the country.

How it works?

Simple really, being an FNB transactional account holder you would have access to free Cellphone or Online Banking (be it the web or FNB App). You can also process this at an FNB ATM if you are not connected.

• The FNB account holder selects the eWallet option on the main menu of whichever platform they choose to transact from via mobile.

• The sender now inputs a mobile number to send to and the amount. A message is sent through to the recipient, with instructions on how to withdraw the funds.

To withdraw, all the recipient has to do is follow the prompts which come through on their phone (dial *120*277#), SELECT “Withdraw Cash” on the menu, and a pin will be send through to your phone. You may take this pin to the nearest FNB ATM (Pin will be active for only 30 minutes), select the option on the main menu of the ATM, enter pin and done!

It’s a great way of getting cash to friends and family in a bind as well as allowing for sending money safely across larger distances. All it takes is the recipient to have a cellphone of any shape or form and they’re able to receive the money anywhere in the country. This useful and time saving product from FNB gets our thumbs up.

Pro’s:

• You can receive money on the go, from FNB users.

• All you need is a cellphone to receive the money(any network, and the receiver need not bank with FNB)

• Sending the money is a simple process.

• No additional registrations required.

• Cost effective (only costs R8,50 to send up to R1000, and R12,50 from R1001 to R1500)

• Once the money is in the eWallet, the recipient has one free withdrawal per deposit made into the wallet

Con’s:

• Access to FNB ATM essential (for receiving money, as the “Selected Retailers” are not listed on the website)

• Mobile network access vital (this would apply to sending as the connection to a platform is required, as well as receiving the sms to confirm the transaction and pin etc)

The two major factors listed as Con’s would render the entire service unusable if they are not working, but in this day-in-age most users have an FNB ATM, around the corner and their cellphones in hand.

There comes a time in every parent’s life when they have to decide when to allow their children to control their own finances and learn the value of money. With a prepaid card kids can jump into the driver’s seat with the tools to teach them how to spend their money wisely, without the threat of debt or banking and identity fraud.

Youngsters must get their parent’s consent when applying for one of the products and they can also monitor what their children are spending their cash on.

There is a great system in the US called “PayJR” : the system allows both the parent and child to review chores through the web site. Printable chore chart and online calendars help parents and children manage chores and rewards. Ongoing “Balance Owed” is tracked by the PAYjr system

The basic premise of a prepaid card means that it is well suited to money management for kids. With no credit or overdraft facility attached children can only spend what is loaded onto the card, meaning parents can keep a close eye on outgoings.

There are no major security risks for kids carrying around a prepaid card either. If the card is accidentally lost or at worst, stolen, the card cannot be used by anyone in-store or at an ATM without the four-digit PIN.

There are a number of scenarios in which a prepaid card can help your children learn to manage their money. Parents may choose to send their teens away on a school trip with a prepaid card, pre-loaded with enough spending money for the duration of the trip. This is much more preferable to handing your kids a wad of bank notes that can be spent all too easily.

If you are preparing for a family holiday you may also consider registering your teens as an additional cardholder and provide them with a holiday budget to spend on activities, food and drink. Regardless of why they need a prepaid card, it is all fantastic experience for your children to understand about money using a real account.

Be careful though, some see the prepaid card as a way for kids to learn that when the money runs out, Mom and Dad can top up the card.

Prepaid is a rapidly growing card payment alternative to traditional credit / debit cards and bank account transfers.

Providing the convenience of debit and credit cards, but without the need to hold a bank account, undertake credit checks, and be liable for overdraft charges or face the nasty end-of-month bill surprises.

Prepaid card market is expanding, as it gives an array of benefits over and above the traditional payment options.

• It’s safer than carrying cash

• It provides flexibility of payment

• Is a more secure online payment method

• Provides a business an alternative method of employee remittance

• Be used for Corporate benefits

• Be used for rewards and incentive schemes

• Provide online accounts facilities and secure payments

• Is more convenient, safer and quicker than issuing and cashing cheques

Prepaid cards can provide a variety of payment solutions for your customers, which include:

• Salary payments

• Expense reimbursement – cost saving and improved efficiencies

• Travel card – more secure and convenient alternative to cash and travellers cheques

• Youth cards – giving payment choice and awareness of money budgeting

We have invested heavily to develop our sophisticated in-house systems and capabilities and gained the accreditations necessary to quickly move forward to offer one of the best end-to-end prepaid solutions in the marketplace.