South Africa's largest banks are racing to gain market share in the mobile banking market.
First National Bank's (FNB) eWallet has seen 239% growth in its subscriber base since its inception in November last year, and currently processes R1 million a day in virtual money transactions.
Yolande van Wyk, CEO of FNB Smart Services, says the growth in mobile money transactions is driven mainly by banking customers working in urban regions, who are sending money back home to unbanked relatives living in rural areas.
“This solution has given our customers an alternative to sending cash instantly and securely to family and friends without having to pay bank fees or transport costs,” says Van Wyk.
She explains that the cash recipient doesn't have to be an FNB customer to receive the money sent to them, and don't have to have a debit card to withdraw the cash at an FNB ATM.
“The recipient also has a choice to either withdraw cash or make use of various electronic transaction options, including purchasing prepaid products such as airtime or sending money to someone else.”
The eWallet offering is free of any bank charges until July. Van Wyk says costs for the service will be revealed at a later date.
However, eWallet recipients will be allowed to continue withdrawing money free from an FNB ATM.
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