Equity Bank is set to launch its Mobile Virtual Network Operator (MVNO) services in July 2014 after a successful foray in the local and regional banking sector – a key feature will be mobile payments.
The bank’s acquisition of a Mobile Network Operator license has shaken the country’s
Equity Bank is set to launch its Mobile Virtual Network Operator (MVNO) services in July 2014 after a successful foray in the local and regional banking sector.
players in the mobile telephony sector as its entry can only heighten the already fever pitch competition.
According to Equity Bank CEO James Mwangi, the MVNO will integrate all its banking services into the mobile phone.
This will in essence pose a serious threat to Safaricom’s M-PESA which is currently the dominant mobile money transaction platform in Kenya and the region.
“By linking the account to the mobile phone, customers can apply for loans, move money to and from their bank accounts, pay bills as well as carry out trans-border transactions from their mobile phone,” a bank official said.
“All our account holders will receive a SIM card without any ‘know your customer’ (KYC requirement) since its already done while opening the account,” James Mwangi, CEO, Equity Bank said while unveiling the bank’s MVNO strategy.
Under this platform, every SIM card will be an NFC debit card, enabling customers to pay for goods by tapping their phones on a mobile point of sale terminal.
The network will allow for seamless money transfer to all banks in Kenya including being Visa and MasterCard enabled. It will also be set up to allow for domestic mobile money services.
Mwangi said mobile money transfers will be charged at 1% of the transaction value compared to the prevailing market charges of 16% while instant loans will be available at a maximum of 2% per month compared with the 7.5% per month offered in the market.
Mwangi said that Airtel Kenya will support Equity’s delivery of MVNO services without capital investment required by traditional mobile operators.
The bank targets to also launch voice, Data and SMS platform targeting its 9 million customers countrywide.
Keywords: mobile payment, mobile payments, NFC payments, mobile money transfer, P2P mobile payments
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