Archive for Retail

Mobile banking the answer for Africa’s unbanked – MXit

{ November 24, 2009 @ 10:22 am } · { MXit, Retail }
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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

Woolworths embraces being water neutral…

{ April 2, 2009 @ 3:12 pm } · { Good news, responsable retailing, Retail, sustainability, Woolworths }
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Woolworths becomes water neutral – interview on Radio 702

Woolworths celebrates Earth Hour by helping customers safely dispose of energy saving light bulbs

{ March 27, 2009 @ 10:15 am } · { Good news, Retail }
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Woolworths, as part of its pledge to support Earth Hour, is asking customers to safely dispose of used energy saving light bulbs in the specially designed bins positioned in 46 of its national stores.

“Energy saving light bulbs need to be disposed of responsibly as the mercury can cause damage to the environment. The mercury content in one light bulb equals the size of a full stop at the end of a sentence, but the dangers of millions of bulbs in land fills throughout the country make it necessary to develop a safe method of disposal,” says Justin Smith, Manager for Woolworths Good business journey.

The collection bins in the 41 stores have been specially designed to ensure that there is no danger of CFL lamp breakage, therefore ensuring that there is no risk to the environment. The bins are cleared regularly and the contents are disposed of appropriately. In time the collection bins will be available in more stores around the country.”

Woolworths is also showing its support for Earth Hour by:
• asking employees to turn off the lights for Earth Hour and become more energy conscious at home.
• swapping employees incandescent light bulbs for energy efficient bulbs supplied by Woolworths and Eskom in the week of Earth Hour; and
• switching off the lights in head office.

“Earth Hour is an important global statement and Woolworths supports it wholeheartedly,” says Smith. “The light bulb disposal bins are important in our efforts to ensure we have a safe environment that is sustainable in the long-term.”

Earth Hour is from 8.30 to 9.30pm on Saturday 28 March 2009.

Woolworths stores with energy saving light bulb disposal bins:

Energy saving lightbulb bin stores
1 Stellenbosch Square
2 Sandton
3 Irene Mall
4 Vincent Park
5 Canal walk
6 Rosebank
7 George
8 Greenacres
9 The Glen
10 Garden Route Mall
11 Kloof street
12 Gardens
13 Fish hoek
14 Bryanston
15 Hyde Park
16 Blue Route
17 Kensington Drive
18 Centurion
19 Cresta
20 Cavendish square
21 Tygervalley
22 Durbanville
23 EastRand Mall
24 Hout bay
25 Farramere
26 La Lucia
27 N1 city
28 Northgate
29 Northcliff
30 Tableview
31 Constantia
32 Eastgate
33 Gateway
34 Morningside
35 Rivonia
36 Waterstone village
37 Somerset Mall
38 Willowbridge
39 Fourways
40 Cedar Square
41 Brooklyn

In addition to the stores above, there are also 2 disposal bins in head office for employees.

Woolworths and its commitment to reducing energy use:

Woolworths, as part of its Good business journey, has committed itself to reducing its energy usage by 30% by 2012. “Although our targets are big, we understood from the outset that Woolworths pledge to sustainability would be the sum total of a multitude of initiatives – some small, some very large. We want people to understand that small contributions can make a big difference – because they are generally easy to implement by millions of people,” says Smith.

Woolworths embraces Water Neutrality

{ March 20, 2009 @ 8:49 am } · { Retail }
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Woolworths is the first retailer to join the World Wide Fund for Nature’s (WWF) Water Neutral Scheme. The scheme, launched late last year in association with the government’s Working for Water programme seeks to encourage corporates to become ‘water neutral’.

Woolworths aims to become water neutral by eliminating invasive water-thirsty alien plants on supplier farms and in protected areas such as the Tankwa Karoo National Park. The project will release enough water into South Africa’s water system to offset the water used by Woolworths operations each year. This offsets Woolworths direct use of water resources, ultimately making the company water neutral as well as creating employment. The project is a 20 year commitment.

Speaking at the launch of WWF’s Water Blueprint report in Johannesburg, Justin Smith, Woolworths Good business journey manager said, “At least 60% of the country’s water resource is used in farming irrigation, and Woolworths is deeply committed to preserving this precious resource. We have a long history of working with our suppliers to influence change and believe in working together to manage our environmental impacts responsibly.”

According to Rodney February, Programme Manager of the WWF Water Neutral Scheme, approximately 7% of South Africa’s average annual run off is used by alien and invasive plants. By assisting to eliminate these plants, Woolworths makes a meaningful contribution towards conserving water resources well into the future.

Deon Nel, head of the WWF Living Waters Partnership , salutes Woolworths for its efforts, “South Africa will, by 2025, have 1.7% less water than it requires, and at the present rate of consumption, we could run out of drinking water by 2040. We applaud Woolworths for its water neutrality strategy and believe that the company is a global example of how corporate South Africa can work with government and NGOs to find a solution that will benefit all.”

The Water Neutral Scheme falls under the WWF’s Living Waters programme and is a partnership between the government’s Working for Water Programme and WWF South Africa. The programme has multiple objectives of reducing the impact of invasive alien plants on our water supplies, improving the productive potential of land, restoring biodiversity and ecosystems function as well as creating jobs and economic empowerment.

The removal of invasive alien plants on supplier farms and in protected areas in the Western Cape is only part of the Woolworths water strategy.

“Woolworths is also on target to achieve the goal of reducing relative water consumption throughout the group by 30% by 2012,” says Smith. “Head office water consumption is down by 13% and stores by 5% over the last year. This is significant, not only for conservation, but also as clear proof that sustainability can deliver cost savings, which can be added to the bottom line.”

Woolworths commitment to preserve water resources and use water responsibly is inspired by Woolworths Good business journey – an ongoing plan to make a difference in our communities, our country and our world.

Woolworths other water management initiatives:

- Woolworths measures the amount of water used by suppliers and works with them to reduce water use and improve water waste management during growing, production and manufacture. Within the Foods unit this work includes the reduction of pesticides, fertilizers and water usage for irrigation.
- Woolworths is well-established as the country’s leading retailer in certified organic fresh produce.
- Woolworths has entrenched a strict code of conduct regarding dyes (including the removal of Azodyes) in the supply chain, which preserves water quality.
- Woolworths works with the CSIR to identify South African arable areas that are likely to struggle with water scarcity due to the impacts of climate change and to incorporate this thinking in its supply chain strategy.
- The company is committed to water conservation education. Woolworths delivers talks at learning institutions, assists to educate its supply chain and provides valuable water savings tips and advice to both customers and employees.
- When evaluating real estate opportunities, Woolworths considers whether the design of the property will enable the use of water and water waste more efficiently. This includes storage and use of recycled and grey water systems, changing the air conditioning systems, retaining as much water on the premises as possible for re-use, use of indigenous shrubs and ground cover to minimize irrigation needs and allowing rainwater to be stored and used.

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