Mobile Payments take hold around the world

Mobile Payments Take Hold Around the World

FEBRUARY 22, 2011 e-Marketer

Transactions will total nearly $1 trillion by 2014

A sixfold increase in the volume of mobile payment transactions is on the way in the next four years, according to one research firm.

A forecast from Yankee Group predicts the worldwide transaction value of mobile payments will total $984 billion by 2014, up from $162 billion last year. That includes transactions from mobile banking, international and domestic remittances, contactless cards, mobile coupons and near-field communications.

According to an Accenture survey of “tech forwards”—web users who use several networked devices and internet services—there is widespread concern around the world with the safety of mobile payments.

Even among this internet-savvy group, privacy and identity theft were serious worries. But while more respondents were concerned in Asia than in the US and Europe, tech forwards in Asia were also more likely to say the mobile phone was more convenient than other ways of paying. Just 29% of US and European respondents said they looked forward to using their phone to make all their payments, vs. 64% of Asian respondents who agreed.

Tech forwards in Asia were already conducting a wide variety of mobile transactions at significantly higher rates than their counterparts in the US and Europe, including checking bank account balances, making purchases, scanning barcodes and transferring money to or from another person.

Respondents to the Accenture survey expected credit card companies to play a big role in facilitating mobile payments, at 59%. Nearly as many, 54%, thought mobile network operators would help enable mobile payments, and 52% thought software companies like Apple and Google would play a role.

A brilliant piece from The Daily Maverick

Righteous indignation:  The mishandling of Nelson Mandela’s illness

The media is used to being lied to, the public perhaps only a little less so. There are some things you don’t lie about, though – even if it is a lie that created only by the passage of time and your inaction. And if you absolutely must lie about such a matter, say, the health of Nelson Mandela, don’t you bloody dare blame the victims for the consequences.

It’s not often spoken of, certainly not publicly, but a great deal of planning and an enormous amount of money has gone into preparing for the death of Nelson Mandela.

The secrecy is partially commercial, with those involved having sworn strict non-disclosure agreements (in the case of media organisations that have already spent millions of rands to beat the competition with coverage), and partially a matter of respect. However inevitable, it is never comfortable to talk about death even in the abstract, never mind the death of a specific person. When that person is the world’s most adored living icon and one of the greatest men ever to walk the earth, well, you just tend to shut the hell up.

But make no mistake, those closely involved won’t be playing it by ear when the time comes. Television stations in particular have long-laid and baroquely elaborate plans in place. So does the Presidency, the military, and the police. We can only assume that the Nelson Mandela Foundation, which serves as a post-presidential office as well as a charitable organisation, has done a little bit of its own thinking in that regard.

Which makes the abject failure of everyone, with the somewhat startling exception of the media, all the more amazing.

The Nelson Mandela Foundation (NMF) lied. It first lied off the record, on Wednesday saying that Mandela would not be admitted to hospital but would leave after tests had been done. Then, later in the day, it lied on the record. “We can confirm that Mr. Mandela is at Milpark hospital undergoing routine tests,” it said in the only official statement of any kind on the day. Early Thursday afternoon the Presidency chimed in with its own statement, which added absolutely nothing to the sum total of knowledge about Mandela’s state of health. “President Mandela is comfortable and is well looked after by a good team of medical specialists,” is all it had to say. It then seemed surprised, despite the fraught emotional environment, when people pointed out that “comfortable” and “very gravely ill” are not mutually exclusive concepts, but did nothing to clarify matters.

Thirty-one hours elapsed between official confirmation that Mandela was in hospital and official word, albeit ever so vague, of what specifically ails him. It would be another 12 hours after that – assuming, at the time of writing, that a scheduled media address by acting President Kgalema Motlanthe goes ahead – before real details, if any, would emerge.

During that time, extraordinary things happened. Prayer groups met, schoolchildren made get-well cards, foreign journalists descended on Johannesburg, cars pulled off roads so the occupants could better hear radio reports, traders watched commodity prices and exchange rates with unusual interest, and, we strongly suspect, some extreme right-wing lunatics checked the ammunition and food supplies they had gathered in anticipation of their long-awaited swart gevaar apocalypse.

What mostly happened, though, were rumours of Mandela’s death. They ran in public over social networks, they flowed in private SMSes. At points during the day even mid-level ANC figures could be found who would confidently say that Mandela had passed on, based on utterly reliable word from a dizzyingly high-placed friend.

Three things drove those rumours: a genuine concern about the health of a loved one; the inevitable need to feel (and be seen to be) connected, well informed and ahead of the curve; and a complete lack of information. Two of those factors are unavoidable. The third is unforgivable.

It is mostly luck that the consequences were not more dire. The ambulance carrying a critical ill patient to Milpark Hospital wasn’t delayed all that long in the traffic jam that formed as journalists camped outside and security guards checked boots for illicit cameras. No cameraman was run over by a speeding car on the decidedly pedestrian-unfriendly bridge that overlooks the hospital. Those who were subjected to a scrum of cameramen outside their car windows, the likes of Jeff Radebe and Winnie Madikizela-Mandela, are used to such treatment and unlikely to suffer long-term emotional trauma from experiencing it yet again. And no crazed white dude decided that the great man had passed and gone to a township to start killing black people in pre-emption of the attack he is convinced would follow.

What did occur was misplaced blame. The Presidency, early Thursday afternoon: “The media should balance the quest for stories with acting within the bounds of human decency and ensuring the respect for human dignity. The doctors also need to be allowed to do their work without undue pressure.” The ANC, Thursday morning: “We call on all South Africans to remain calm regarding the hospitalisation of Madiba and not press any panic buttons, as there is no reason for that whatsoever.” Ironically enough, the ANC in its statement also sought to reassure South Africans that they’d be told of any significant developments, while destroying all potential trust in that promise by saying he was “undergoing routine medical check-up” (sic).

People speculated, and the media peered through car windows for any tiny sign from which something could be extrapolated, because there was nothing else to do, and nobody to trust; that much had became clear as soon as grandchildren and other family members started arriving at the hospital on Wednesday. Neither can be blamed.

But somebody will end up carrying blame, fair or not. “The parallels are certainly there,” says independent marketing and communications specialist Clive Simpkins. “Whenever there is over-control – and this is what  they are missing, they are missing the perceived fact that [Mandela] is considered public property – those controlling the flow of information get blamed.”

Simpkins is speaking, of course, of the backlash against the British royal family after the death of Diana Spencer, who became “the people’s princess” while the usually revered Queen was suddenly reviled for not grieving enough or publicly enough.

The Nelson Mandela Foundation is already feeling that backlash, perhaps because it is a faceless organisation and easier to cast aspersions on that then a wife or daughter or even spokeswoman. Instead of taking advantage of the sudden global upsurge in interest in Mandela – and raising funds with which to do good work, which he would surely approve of – the NMF has come perilously close to badly tainting its own image.

There are excuses, and we will surely hear many of them in weeks to come: the needs of the family come first, nobody wanted to jump the gun, there are many parties that need to co-ordinate around communication. None of them are acceptable.

We have a modest proposal, based on the events of the past week, which we think will serve South Africa and the world well the next time we find ourselves in this situation. Bring on the Arch.

If there is anyone who comes close to Nelson Mandela in terms of respect and admiration in the world today, it is Archbishop Emeritus Desmond Tutu. He is nearly universally trusted and truly gifted, not to mention enormously experienced, when it comes to guiding people through uncertainty and grief. He has endlessly proven himself willing to put his own needs aside in favour of the greater good.

So the next time the country is rife with anxiety and in need of comfort, just bring on the Arch. Don’t make us go through all of this again..

Written by Phillip de Wet

Convenience, price and advice driving SA wine drinkers onto the web

  • 93% of South African wine drinkers surveyed believe they are paying too much for top estate wines at supermarkets and liquor stores.
  • Wine buyers intimidated by enormous selection of wines on supermarket shelves.
  • 71.4% refuse to queue at retailers because it is a waste of time in a time-poor society.

As the working year draws to a close, South Africans are starting to think about stocking up on wines, French Champagne and locally produced sparkling wines for the festive season. This year, however, they are not buying them in a supermarket or liquor store, but rather online, at a number of discounted wine sales portals that have sprung up during the last year.

One such website is SaleWine.co.za, an online wine retailer that sells well-known and boutique wines at between 30 to 70% off the retail price for a period of 72 hours, or until it is sold out, and delivers for free. The company recently polled close on 1000 South African wine drinkers to find out what drives them online.

What they found is that South African wine consumers are becoming a lot more savvy about selection, finding the right price and making sure that the way that they buy these wines makes it as easy and hassle free as possible.

93% of South African wine drinkers polled believed that they were paying too much for South Africa’s top wine brands. “Although they still like to enjoy these wines, consumers are becoming more used to searching for and finding the best prices for the wines that they want to consume, and they are almost always found online,” says AJ Ray, a director of SaleWine.co.za.

When asked how they feel about going to a retail liquor outlet, 71.4% said that they would go if they had to, but that they took exception to standing in a long queue because they thought it wasted their time.

Besides price, the other top reasons for shopping for wine online were being able to shop at their own convenience and not having to be limited to traditional retail hours, as well as being able to research the wines before buying them, or getting a review or advice from a wine expert.

“35.7% of those surveyed are intimidated by the enormous selection found at a retail liquor store or supermarket and would far prefer to get advice when shopping at these outlets,” says Ray. “It would make sense for these stores to employ wine masters to help customers make selections, otherwise they may find themselves losing more clients to the online retailers, especially those, like SaleWine.co.za, that are offering customers both price and advice.”

The third biggest reason for shopping online was their ability to save money, not only on the wines, but also on the peripheral costs to acquiring that wine at the bottle store or supermarket, including petrol, parking and time wasted on queuing.

The fourth reason was their ability to find boutique or interesting wines. “Even though 57.1% of surveyed wine consumers are wine novices, they are still looking for the gems of the wine lands, those boutique wine estates that only release a limited amount of a special vintage or varietal,” says Ray.

Not surprisingly, 43% said that carrying their own bags, filled with heavy wine or sparkling wine bottles, from the supermarket or liquor store would be their first reason to immediately move to online shopping, just so that they could have their purchase delivered to their kitchen counter.

“This is a big concern for customers, they don’t want the hassle of having to carry their own purchases home, and if one really thinks about where service levels are going and what consumers expect in return for their custom, I really can’t blame them,” concludes Ray.

The concept of selling wines for between 30 and 70% off the retail price for a limited period only, called flash sales, is new to South Africa. Ray, who has been in the local wine business for over 15 years, started the business to right what he believes is wrong with the South African wine industry.

“Consumers are consistently being charged too much for the wine that they buy and are essentially being forced to pay for South Africa’s own version of the American fake three-tier system, which includes a producer, wholesaler and retailer. At the end of the day, farmers want to sell their wine and consumers want to buy them, albeit at a good price. By offering the farm a fair price for their wines, and then keeping the margins and costs to a bare minimum, SaleWine.co.za is able to address both those needs,” concludes Ray.

How to become a member of SaleWine.co.za

Membership is free but limited to the over 18’s. People can become a member by visiting http://www.salewine.co.za and signing up to become a member. They will receive an email confirmation a few seconds later, and they simply have to click on the link to confirm their membership.

SaleWine.co.za sells one red and one while wine at every sale, which lasts for 72 hours or until the wine is sold out. Purchases are delivered at no extra charge within 5 to 7 days of the end of a sale. An email is sent to members each time a new sale is launched.

To visit the website: http://www.salewine.co.za

Newly launched wine website, SaleWine.co.za

Modern remote devices can interfere with your vehicle immobiliser

Double check your car

Short-term insurer Santam is urging South African motorists to double-check that their vehicles are locked after they have pressed the immobiliser button. There have been recent reports of thieves using remote devices to counter a vehicle’s locking action.

“In order to avoid falling victim to this latest criminal technique, motorists should take heed. Even if they hear the tell-tale beeping sound that confirms that the vehicle has been locked, the doors may well still be open, which allows thieves unrestricted access to your car and valuables,” advises Shehnaz Somers, Santam’s head of personal lines underwriting.

“With theft of property inside a vehicle on the increase, it is always better to be safe than sorry, so double check your vehicle and make sure that you don’t leave any valuables exposed as temptation,” says Somers.

According to the SAPS crime statistics released this month, theft of property inside a motor vehicle increased by 8.9% for the period 2009 / 2010. Of all the provinces, the Western Cape had the highest increase, with 16.1%, followed by Limpopo (15.5%) and Mpumalanga (14.4%). The Northern Cape and Free State were the only two provinces that recorded decreased levels of theft of property inside a vehicle.

Some tips on ensuring that you and your vehicle are safe:

• Double check that your vehicle is locked by testing the doors after pressing the immobiliser button.

• Make sure you test all immobiliser devices and security systems at regular intervals. If there are any faults, an authorised service provider should be contacted to fix or replace the faulty system with a recommended device.

• Personal items such as sunglasses, cell phones and even groceries should not be visible in the vehicle and should rather be stored in a locked boot, thereby reducing the temptation to steal. Some insurance policies specify that items need to be locked in the boot when unattended, so train yourself and your family to do so on a permanent basis.

• Santam provides optional cover for claims on stolen groceries and household goods from cars. The car however needs to have been locked at the time of the theft.

Ask Why initiative rakes in massive consumer support for Amstel at R10!

In an independent consumer survey commissioned by Amstel Lager this week, 90% of surveyed South African beer drinkers say that they support the Ask Why! initiative, which brandhouse were forced to communicate in response to attempts by its competitor to persuade tavern owners around the country to price Amstel at prices well above-the-recommended selling price of R10.

The results are a true testament to the fact that beer consumers will trade up from mainstream beer to Amstel if it is priced at or around its recommended price of R10 as opposed to prices between R12 and R14 as advocated by brandhouse’s competitor.  The survey results indicate that Amstel’s 660ml returnable bottle, priced at a recommended price of R10, will win the hearts and minds of beer drinkers throughout South Africa. 

The survey, conducted with over 1100 respondents from around the country, also asked consumers if they would travel to find another tavern if their local sold Amstel 660ml above the recommended price.  74% said that they would, because price is extremely important to them while only 26% said that they would stay and pay the higher price. 

Tavern owners around the country are free to sell Amstel at any price.  Amstel has worked hard to ensure that everyone, no matter what their income group, is able to access this great premium beer at a lower price, which is why Amstel recommends that it is sold at R10. 

“Choosing to sell Amstel at its recommended price of R10 works for consumers as well as tavern owners, because at R10, they will find it easier to trade up from mainstream beers to Amstel.  This will help them to sell more and make more margin over mainstream,” says Gerald Mahinda, MD of brandhouse, the company that brews and distributes Amstel Lager.

When asked if consumers were pleased with the recent reduction to Amstel’s size from 750ml to 660ml, and the resultant drop in price and introduction of a returnable bottle, 94% said that they were happy with the changes because it means that they can now afford this great premium beer at a great price.  Only 6% said that they preferred the 750ml bottle.*

94% said that they would trade up to Amstel premium beer if they were able to buy it for R10 and 6% said they prefer mainstream beer.

“We are extremely pleased with the results of this survey, because it indicates that surveyed South African beer drinkers prefer to drink Amstel over mainstream if it is priced within their budget.  I believe Amstel at a lower price is a big win for all South Africans, and a true testament to the fact that if you keep the consumer at the centre of your pricing strategy, you will win!,” concludes Mahinda. 

Survey demographic profile:

Monthly income:

Between R0 and R1499                     45%

Between R1500 and R2499               18%

Between R2500 and R4999               21%

Over R5000                                        16%

Male / female split:

Male                                                    63%

Female                                                37%

Age:

Between 18 and 24                             27%

Between 25 and 32                             60%

Between 33 and 40                             11%

Older than 40                                      2%

Survey results:

Amstel Lager has made it possible for your tavern owner to charge you R10 for Amstel’s 660ml returnable bottle, if you are charged more, will you Ask Why?

Yes, I want to buy a great premium beer at R10       90%

No, I am happy to pay more.                                      4%

I don’t know.                                                                6%

Does price matter to you so much that if you can’t get your Amstel Lager 660ml returnable at your local tavern for R10, you would travel to find a tavern that sells it at R10?

Yes, price is very important to me, I will travel to find Amstel at R10.           74%

No, I would stay and pay the higher price.                                                     26%

If you can buy Amstel Lager, a premium beer, at R10, would you buy premium over mainstream beer?

Absolutely yes, I would far prefer to enjoy a premium beer over a mainstream beer.        94%

No, I prefer mainstream beer.                                                                                                6%

Amstel worked hard to reduce the cost of 660ml Amstel Lager to R10 by reducing bottle size and by introducing a returnable bottle – are you happy with these changes?

Yes, I now get a great premium beer at a great price.                                   94%

No, I liked the 750ml bottle that I paid more for.                                            6%

Coming to SA in May: Smirnoff Experience MashUp Street with DJ Tiesto!

It’s been to New York, Moscow, Paris and London, and now Smirnoff, the number one spirit brand in the world, is bringing Smirnoff Experience, MashUp Street to Johannesburg on 15 May 2010. Tickets can only be won, not bought, so visit http://smirnoffexperience.co.za on Wednesday to find out how to win.

Smirnoff Experience is fast becoming the world’s top collaboration platform. The MashUp Street theme created for South Africa celebrates collaboration between South African street cultures and popular music genres to create a one-of-a-kind music experience. The popular theme also extends to collaboration between fashion, food, art and even drinks. Smirnoff Experience MashUp Street is a place where Kwaito vibes with Preppy, Afro funk hangs with Goth and Pop chills with House.

To cement the importance of collaboration, DJ Tiësto, voted the world’s number one DJ three years in a row, will be headlining the event and will collaborating with the very best of South African musical talent, all of which will be named closer to the time. Tiësto is no stranger to combining different genres of music to create unique sounds; he has collaborated with artists as varied as Nelly Furtado, Sean Kingston and Flo-Rida.

“I feel deeply inspired by this year’s theme for the Smirnoff Experience because it evokes creativity and promotes relationships between genres that would not normally meet on stage. I can guarantee that, like this year’s theme, people will experience something out of the ordinary. I am very excited to play for a South African audience at Smirnoff Experience MashUp Street,” says Tiësto.

South Africa won the honour of hosting the Smirnoff Experience in a closely contested international campaign that involved 140 countries.

“We are really proud that South Africa was chosen to host Smirnoff Experience 2010. Our unique Mash-Up Street theme is focused on creating platforms that inspire South Africans to push the boundaries to create new experiences and we believe that it was the uniqueness of this theme that placed us ahead of the other 140 countries that competed. If you asked me what the one thing is that South African’s can expect from Smirnoff Experience 2010, I would say that it is going to be clearly original,” says Adrian Petersen, marketing manager for Smirnoff South Africa.

Besides the best international and local talent, concert goers will be treated to a sensory journey that showcases MashUp Street culture in its very finest form. From the moment ticket holders enter MashUp Street, it will be clear that they are attending an international event that is truly one-of-a-kind.

Tickets are limited to the 18-and-over market.

Not for Sale to Persons Under the Age of 18. Drink Responsibly

Travel beats marriage as SA’s top Valentine’s gift

79% of South Africans would rather be taken on a surprise trip to a romantic destination than have their partner “pop the question” this Valentine’s Day. This is according to an online survey conducted by Travelstart.co.za, South Africa’s biggest price comparison and booking website.
“This has been an interesting survey for us, because it highlights South Africans’ passion for travel. We have seen an enormous surge in bookings this Valentine’s Day and it is clear that couples are taking advantage of the discounts that the recession has brought, both for local and international trips,” says Stephan Ekbergh, CEO and founder of Travelstart.co.za.
When asked about dream destinations for Valentine’s Day, 69% of the 7300 respondents said that tropical islands like Maldives and Fiji are at the top of their wish list.
“Good news for single travellers is that more than a third of the respondents had a romantic fling with someone that they met while travelling, so maybe this is a good reason to pack your bags and head to the airport,” says Ekbergh.

87% listed “seeing the world and meeting new people” as their favourite reason for travelling while only 2% said that they travel to join the mile high club. In fact, 30% of South African’s had never heard of the mile high club.

So even though couples see more value in travelling to an exotic destination than a proposal, it is very possible that a romantic island getaway will create the perfect setting for an unforgettable proposal anyway.

Growth of online travel increases despite global economic downturn

Travelstart.co.za, South Africa’s biggest online travel price comparison and booking website, today reported a 70% increase in online travel sales for 2009.

The company’s growth, recorded in a year littered with financial gloom and dismal global tourism growth figures, is a sure indication that, despite these challenges, online bookings is becoming more popular amongst South African travellers.

“We are naturally very pleased with our growth here in South Africa and believe that we will see an even bigger increase in figures for 2010, not only because we will be hosting the 2010 World Cup, but also because South African’s are fast becoming more reliant on the internet to research and plan travel.

“We saw a huge influx of new business from travellers who would normally have done their travel bookings at traditional high street travel agencies. They are finding it more convenient, and in most cases, cheaper to research and compare flights, hotels and car rental online. I predict that there will be no high street agencies left five years from now,” says Stephan Ekbergh, CEO and founder of Travelstart.

South Africa seems to be following the online travel booking trend of more established internet markets such as the US and Western Europe. In these markets, more than 40% of all hospitality revenue is generated on the internet. In the US, 84% of travel research and planning is conducted online. The introduction of cheaper bandwidth locally will make the internet more accessible to South African’s and this is expected to dramatically drive online sales.

Online agencies such as Travelstart offer travellers the opportunity to instantly compare prices and itineraries for all airlines travelling to specific routes. This allows travellers to act as their own travel agents and to book their travel at their own convenience, without having to wait in queues.

Travelstart has also harnessed the power of social networking by creating a community of travel-minded fans who follow the company on Facebook, Twitter and through its blog. “Our aim will always be to find ways to make the travel booking process easier and more fun for our customers. The future of travel is on the internet, so whether consumers prefer connecting to the internet on their pc’s or mobile phones, they will always find Travelstart there, making the process easy and fun,” concludes Ekbergh.

ENDS

About Travelstart Travelstart is a global online booking site that allows you to act as your own travel agent. At www.travelstart.co.za customers can search and book flights, hotel, cars and holiday packages in a safe and convenient way from home.

Travelstart’s aim is to offer the best prices in a transparent manner and to provide a superior customer experience. Travelstart was founded and established in Sweden by CEO Stephan Ekbergh in 1999. Today Travelstart is a global company with presence in 10 markets, with its South African office located in the heart of Cape Town, CDB.

Issued by: FD South Africa

Please contact us for further information, visuals or to set up an interview:

Tarryn Rinkwest 071 602 3229 / 021487 9017 / jtarryn.rinkwest@fd.com

Sandra Sampayo 079 167 6863 / 021487 9000 / sandra.sampayo@fd.com

Mobile banking the answer for Africa’s unbanked – MXit

Globally, mobile banking will become three times more popular than traditional banking by 2011 and MXit, the mobile social network and instant messenger, is poised to offer banks in Africa a safe, seamless transaction platform that eliminates entry barriers like data costs and safety.

Jaco Hattingh, CEO for MXit Africa, predicts that in Africa, where there are over 300 million adults with no access to financial services, there will be a mass move from traditional banking services, that offer savings and cheque accounts, to those that allow for person-to-person transactions through mobile devices.

“According to Gartner, 73 million transactions are expected for 2009, however there is room for further growth if we overcome challenges like financial literacy in developing countries, as well as trust issues involved with mobile technology and the related costs of accessing the internet via a mobile phone,” says Hattingh.

“This is where MXit comes in.  The low data costs of operating a mobile social network and instant messenger allows banks to deliver mobile banking solutions that cost a fraction of the cost of normal data downloads through traditional mobile internet platforms.  We have proven that this can work through the transactional platforms that we’ve provided on MXit for two of South Africa’s leading banks.  We’ve offered First National Bank (FNB) and Standard Bank clients the ability to do mobile banking solutions via MXit,” continues Hattingh.

Any FNB account holder can purchase MXit Moola (MXit’s virtual currency) for friends and family in a cost effective and safe manner via the MXit platform. Traditionally, Moola could only be purchased by means of a FNB credit card or a premium rated SMS. The Standard Bank mimoney payment method is for individuals who would like to transact on a website or mobi-site, but do not have access to a credit card. mimoney clients can now buy MXit Moola via mimoney without having to use a credit card.

These products are designed to meet the needs of the mobile savvy market.  40% of the South African population, even though it is considered the most developed banking country in Africa, do not have access to a bank account.

“Mobile phones present an opportunity to provide quality banking solutions for all. In developing countries like Africa, with a huge unbanked market, innovative banking and payment services like these could provide the first step towards breaking out of the poverty trap for low-income individuals. While in developed markets it simply means convenience for an increasingly mobile lifestyle,” says Hattingh.

The challenges of increased access to mobile banking are clear – however by working with platforms such as MXit these challenges can be overcome by offering clients access to a cost effective mobile banking application that is available anytime, anyplace.  The mobile banking model is based on serving all income groups: teenagers, students, business, high net worth individuals and the informal sector are all able to access financial services via their mobile phones

The banking industry’s growth in the African informal market is further aggravated by the tough anti-money laundering regulations set by governments which require proof-of-identity documents to be presented at a bank branch. Presenting these documents, in order to open an account, can often be prohibitively expensive for low-income customers

“We believe that our transaction platform is an opportunity for all developing markets, not only Africa.  Currently there are 4 billion mobile phones, but only 1.6 billion bank accounts. There is an enormous opportunity to reach the unbanked by means of mobile banking that is driven by MXit’s transaction platform.  Developing countries are short of both physical banks and internet outlets, so banking from mobile phones is the logical solution,” continues Hattingh.

The combination of mobile payment solutions, combined with the ease of use, makes this the perfect solution for all individuals, across all income groups.

“The ability to access money transfers, mobile communication, mobile banking, mobile payments and the reduced risk of theft is an appealing solution for individuals who want access to financial services without the worry of going in to a branch or being PC-bound,” says Hattingh.

“Banks and financial service institutions would do well to partner with established mobile social networks like MXit, with a proven record in developing business platforms for the banking sector – it will certainly address the issue of cost as transacting on the MXit platform is relatively free,” concludes Hattingh.

MXit, with close to 17 million subscribers, has already secured its place as the most popular mobile social network and instant messenger in Africa and is currently on a massive expansion drive to secure its leadership in South East Asia, Latin America and the Caribbean.  Its growth and success is firmly based on its ability to read global trends and develop the level of innovation that has endeared it to its massive subscriber base.

Ends

About MXit

MXit is a free instant messaging and mobile social networking application for both mobile phones and PCs.  It allows members to chat to other MXit users anywhere in the world.  It also allows users to send text messages to and from mobile phones and PCs using GPRS or 3G instead of using standard SMS technology, which is expensive.

The social networking element of the business is the cornerstone of its growth.  MXit is a new generation company that boasts just over 17 million members globally and is growing by 20, 000 and 28,000 users per day – while processing 250 million messages per day.   It is in constant evolution to match the needs of its users and is set on becoming one of the biggest instant messaging mobile networks in the world and the preferred mobile social network for communicating with young people in South East Asia, Latin American, Africa and globally.

The company introduced mobile instant messaging to South Africa.  It started as a mobile game developer and evolved into a mobile instant messaging company, allowing its users to send messages at a fraction of the cost of traditional SMS.

To download MXit: Open your mobile browser, type in www.mxit.com/wap and simply follow the prompts.

Issued by:

FD Beachhead

Sandra Sampayo                079 167 6863 or 021 487 9000       sandra.sampayo@fd.com

Jean Dennis                       083 500 5302 or 021 487 9000       jean.dennis@fd.com

Survey finds that South Africans fear lost luggage more than swine flu

53% of South African travellers would rather deal with the possibility of contracting swine flu than run the risk of losing their luggage. These are the findings of an online survey conducted by Travelstart.co.za, the global online travel booking service. Only 5% of travellers polled thought contracting swine flu the biggest fear when travelling.

“Although ACSA and the airlines have worked hard over the last year to curb theft and misplaced luggage, it is clear that this is still a big fear for both South African and global travellers,” says Stephan Ekbergh, CEO and founder of Travelstart.

In 2007 about 40 million items of luggage were reported lost globally.  This figure decreased to 32 million in 2008.

“In South Africa around 10 000 personal items were reported lost or stolen in 2008, and this does not include damaged and stolen luggage. Few passengers seem to know that if their luggage is lost, damaged or merely delayed for more than four hours, they are entitled to compensation,” says Ekbergh.

Airlines offer compensation in the region of 20 USD per kilogram for lost or delayed luggage. Although this amount is the industry standard, some airlines compensate well above this rate – an example of this is Air Botswana that compensates at a rate of 42USD per kilogram.

“Protecting your valuables is especially important with personal items that are impossible to replace, like the photographs of your holiday should you lose your camera, jewellery and valuable company and personal information in the event of a lost laptop,” says Ekbergh.

“Although it is important to understand what compensation you are entitled to as a passenger, it may also be prudent to ensure that you have adequate travel insurance to protect your valuables. With travel insurance, you can claim up to R25 000 for theft or damage to your baggage, depending on the amount of cover you opted for.”

In addition to the standard safety measures travellers should undertake, SITA – the organisation specialising in air transport communication and information technology solutions – has recently announced that radio–frequency identification (RFID) could potentially save the airline industry $750 million annually by ensuring origin-to-destination tracking of baggage.

30% of the travellers polled in the survey thought that missing a flight is the major concern. Although there are about 1000 South Africans in jails globally convicted for crimes relating to drug trafficking, a mere 13% said they would be terrified of being mistaken for a drug mule and given a full body search.

Swine flu has accounted for 5558 known deaths globally and 91 deaths in South Africa.

“While swine flu is undoubtedly a serious disease that made headlines around the world and rattled the global airline industry, it was interesting to see that while 53% of travellers feared losing their luggage, only 5% are more concerned about contracting swine flu while travelling,” concludes Ekbergh.

Tips for travellers:

  • · Where possible, travel only with carry-on luggage and take a spare set of clothing in case your check-in luggage is lost.

  • Place your contact information inside and on the outside of every bag.

  • Customise the look of your bag to make it easy to identify.
  • Keep valuable items with you, preferably under the seat in front of you.
  • Make sure that you keep the luggage stub from your checked luggage as it is a critical piece of information to prove ownership should your luggage get lost or stolen.

  • Always report the loss of checked luggage immediately.

  • Don’t pack hazardous goods. If uncertain, check with your travel agent, airline or airport officials.

ENDS

About Travelstart

Travelstart is an online booking site targeting global citizens and travellers. At www.travelstart.co.za customers can search and book flights, hotel, cars and holiday packages in a safe and convenient way. Travelstart’s aim is to provide compelling prices and a superior customer experience.

Travelstart was established in Sweden by founder and CEO Stephan Ekbergh in 1999. Today Travelstart is a global company with presence in 10 markets, with its South African office located in the heart of Cape Town.

Issued by:

FD Beachhead

Please contact us for further information, visuals or to set up an interview:

Jean Dennis                       083 500 5302 / 021487 9019 / jean.dennis@fd.com

Sandra Sampayo                079 167 6863 / 021487 9000 / sandra.sampayo@fd.com

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