A new off-the-shelf mobile money platform from Visa has been
launched that aims to make it easy and cost-efficient for financial
institutions (FIs) and mobile network operators (MNOs) to offer mobile
financial services to so-called ‘unbanked’ consumers.
The Visa Mobile Managed Service will allow those without a bank
account in developing countries and elsewhere to still make payments, buy
goods, send remittances and store value on their mobile phone devices, easing
unbanked consumers path into the financial services ecosystem. The new launch,
which has Aircel and ICICI Bank in India as launch partners, will compete with
similar rival schemes such as M-Pesa in Kenya.
Visa says however that its more global platform will have
greater reach and is the world’s first bank-grade managed service for mobile
money. Visa will host and fully manage all aspects of the mobile money
programme on behalf of the provider, whether that is a bank or other FI,
consisting of the user interface design through to consumer enrolment
procedures, transaction processing, authorisation procedures and the clearing
and settlement of mobile money payments. The new service can enable
domestic-only or globally interoperable mobile money services.
Unbanked consumers in India and Rwanda are the first to benefit
from the service, with the aforementioned Aircel mobile subscribers in India
already being offered the service with ICICI Bank looking after the payments
element.
Customers of Bank of Kigali and Urwego Opportunity Bank in Rwanda also
have access to a financial account that is linked to their mobile phone number.
From cash-in and -out transactions at agent locations, typically shops,
consumers can take advantage of bank-grade financial services and Visa-quality
payments to pay bills, send remittance money to relatives, top-up mobile phone
air time credits and buy train tickets, among a host of other services.
“We applaud the pioneers in Africa, Asia and the Middle East who
have launched closed-loop mobile financial services and reached so many
consumers so quickly,” said Bill Gajda, head of global mobile products for Visa
Inc, alluding to the established position of regional rivals like M-Pesa.
“As
demand grows, however, so does the cost and complexity to maintain these
services. Visa’s new mobile money platform is designed to allow mobile
operators and financial institutions to focus on their core business, while
leaving the management of their mobile money service to Visa.”
Powered by Fundamo Technology
The new platform, which is being hosted in Visa managed data centres around the
world, is built on Fundamo systems and software, the mobile money technology
acquired by Visa in 2011, which has already been successfully deployed in more
than 30 countries.
Visa says its new platform is designed to comply with the
regulatory frameworks established for mobile financial services. It offers MNOs
and FIs a local connection to Visa’s global payment network, VisaNet, and a
one-stop solution for providing mobile money services that are based on Visa
standards of security, reliability and interoperability. Through the new
platform, Visa can manage all aspects of a mobile money service, including:
• Mobile Money Programme Management: Visa, on behalf of the
mobile money service provider, can manage the customer enrolment and mobile
wallet user interface, fees, commissions and taxes, as well as apply risk
management tools, reporting capabilities, and other ‘on-behalf-of’ services.
This reduces implementation costs and resources required to deploy mobile money
services, but does of course cede control.
• Support for any Mobile Channel: Mobile money service providers
can use industry standard interfaces to connect to Visa’s new platform, and can
send mobile money transactions across all mobile channels including USSD
(Unstructured Supplementary Service Data), xHTML (Extensible Hypertext Markup
Language), and IVR (Interactive Voice Response).
• Support for a Comprehensive Set of Transactions: The platform
enables financial transactions in both closed-loop and open-loop environments,
including cash-in and -out transactions at agent locations and ATMs, domestic
and international money transfers, payments at merchants where Visa is
accepted, as well as bill payments and air-time top up. It also supports
informational transactions such as bulk registration, balance inquiries, PIN
and account management.
• Customer Support and Regulatory Compliance: Visa’s Mobile
Managed Service can support compliance with mobile and financial regulatory
requirements in different countries. In addition, the platform can offer
comprehensive customer support capabilities including monitoring and
maintenance of connections to host systems, disaster recovery, incident
management, as well as customer response management and account management
workflows concerning anti-money laundering (AML) and Know Your Customer (KYC)
procedures.
• Visa Payment Security: The platform combines Visa’s risk
processing technology with the security and authentication features of mobile
devices, allowing the mobile money service provider to offer financial
transactions that are based on Visa’s card standards for transaction security,
reliability and interoperability.
One of the launch partners, Geoff King, head of mobile banking
at Aircel in India was excited by the new service, saying: “Through the Visa
hosted and managed service, Aircel is now able to partner with local banks to
offer our mobile subscribers access to money services that will simplify their
financial lives. We begin with our partnership with ICICI to offer customers
the ability to send cash across the country securely, to top up their prepaid
mobile accounts, and pay their utility bills.”
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