Community
Question to all bank CEO: Why Ýour' Bank is not encashing on their strengths and why wallets are taking birth like dime-a-dozen.
Wallets would survive only in that country where cost of banking transaction is very high and the user needs cheaper alternative. Example: Any african country.
All concepts like unbanked, financial inclusiveness are gimmick. Africa is a success story for wallets because African banks are ripping people with all sort of obnoxiously high charges/fee. They created their own enemy (like mPesa) and now amusingly Equity Bank has applied for VNO license. I am surprised...who advises such moves. It is laughable that in US/UK, we expect a person to own a mobile but not have a bank account....and then we offer wallet. Folks... which world are we living in and whom are we fooling.
Kenyan banks already have an existing infra-structure, wherein they can beat any Telco on their own turf....and bingo... with zero cost of transaction. Are Kenyan banks aware of it...?
Unfortunately, rest of the world is disillusioned by mPesa and similar examples and they are burning investors' money...offering a wrong solution to an unknown problem.
Need is not a wallet...but need is a payment system. I hope wise people can make out the huge difference. mPesa is not behaving as a wallet...but it has become mode of payment...for all purposes.
Banks had and would continue to have significant advantage in mobile based payments...be it meaningless wallet or else. It is just they need to see it in front of their eyes...already existing.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
David Smith Information Analyst at ManpowerGroup
20 November
Konstantin Rabin Head of Marketing at Kontomatik
19 November
Ruoyu Xie Marketing Manager at Grand Compliance
Seth Perlman Global Head of Product at i2c Inc.
18 November
Welcome to Finextra. We use cookies to help us to deliver our services. You may change your preferences at our Cookie Centre.
Please read our Privacy Policy.