A mobile wallet

[eltherza]

Could definitely work!
Payments are made to the barman’s' SWAP Code. He receives instant sms notification of the payment. No fees are charged to the person buying drinks, whether paying with a linked credit card or from the debit Wallet.

But there are fees charged to the barman [just like all credit card transactions]. There are better rates for credit card machines out there though, some starting at 3.5% and lowering to as little as 2.5% depending on usage.

But the biggest challenge is convincing someone to use a cellphone, people are paranoid, arent up with tech and the hardest question: "why replace the quick and ease of use for a card?"

 

[SWAP Marketing]

@SWAP_Marketing: what USSD price band is being charged (to our cellphone airtime) for using the USSD interface?

It is a free USSD price band. No calls to SWAP are charged for.

 

[SWAP Marketing]

But there are fees charged to the barman [just like all credit card transactions]. There are better rates for credit card machines out there though, some starting at 3.5% and lowering to as little as 2.5% depending on usage.

The fees charged to the business for SWAP payments are highly competitive at 1.5% for debit payments and 3.5% for credit payments. Among the many advantages of the SWAP system is that payments can be made anytime and from anywhere by customers. A business that would usually use multiple swipe machines now only needs one SWAP Code and can receive thousands of payments at once, even if the customers are not on location.

But the biggest challenge is convincing someone to use a cellphone, people are paranoid, arent up with tech and the hardest question: "why replace the quick and ease of use for a card?"

SWAP currently sells airtime using this payment system on the *130*1313# number. Thousands of South Africans make use of this method of purchase for its convenience and ease-of-use. SWAP eliminates the need for cash and cards, is a PIN based system which makes it very secure, and SWAP is growing on people the same way that paying with cards did (for which your argument also applies regarding the trust factor).

 

[kingmonty]

The fees charged to the business for SWAP payments are highly competitive at 1.5% for debit payments and 3.5% for credit payments. Among the many advantages of the SWAP system is that payments can be made anytime and from anywhere by customers. A business that would usually use multiple swipe machines now only needs one SWAP Code and can receive thousands of payments at once, even if the customers are not on location.

Is this above and beyond the bank merchant fees charged? And, to ask another question, how are you going to combat fraud when cellphones are stolen?

SWAP currently sells airtime using this payment system on the *130*1313# number. Thousands of South Africans make use of this method of purchase for its convenience and ease-of-use. SWAP eliminates the need for cash and cards, is a PIN based system which makes it very secure, and SWAP is growing on people the same way that paying with cards did (for which your argument also applies regarding the trust factor).

Purchasing airtime is one thing - doing banking is entirely different.

Do you guys use your own bank switch?

 

[SWAP Marketing]

A business is charged the above rates for payments received. A R330.00 hosting fee is charged per month which replaces the cost of renting a swipe machine and the cost of the fastnet antenna (or telkom calls per transaction if no antenna) which usually add up to over R450 per month. Multiple machines would obviously cost a business more.

SWAP complies with all security and other regulations laid out by the SARB, PASA and other regulatory bodies in the National Payments System. If a cellphone is stolen, nobody can access your SWAP Wallet to make payments without knowing your secret PIN code. Because SWAP is USSD based, it does not leave any info or applications on your cellphone, and if stolen, you will need to update your new SIM card information with SWAP in order to access your Wallet.

 

[SWAP Marketing]

Purchasing airtime is one thing - doing banking is entirely different.

SWAP is a payment system. We do not position ourselves as a bank. The principle of paying for recharge airtime is the same principle as paying for your dry cleaning, electricity bill, garden service etc.. You are provided with an electronic Wallet with which to make credit and debit payments at no charge. Link an existing credit card for credit payments, or EFT money to the Wallet (as you would draw cash for your BUSBY purse). Send funds at no charge to a family member or friends Wallet, even if they are in another province.

 

[spykoss]

Theft!!

Huh?!?!? Isn't that what someone does with a cellphone?

Well, if you have a place in Braamfontein, Jhb - carrying your cellphone around 24/7 is something you quickly learn to disapprove of. If I want bread at 19h15 - my cellphone stays safely in my room!

My point being with about 3000 phones stolen a day in SA, it could lead to a significant increase in this figure should the service be welcomed by consumers...

 

[Lourens]

I was pleased to read about this payment provider untill I saw the associated fees for merchants;

SWAP Code activation R 330
SWAP Code Hosting R 330 / m

and it is called very "competitive"!

Why should it cost me money to educate my client base to use a third party system when they can use their existing credit card to pay me?

On line/off line - does not make sense to me.

 

[RamblingMan]

I was pleased to read about this payment provider untill I saw the associated fees for merchants;

SWAP Code activation R 330
SWAP Code Hosting R 330 / m

and it is called very "competitive"!

Why should it cost me money to educate my client base to use a third party system when they can use their existing credit card to pay me?

On line/off line - does not make sense to me.

I believe this was answered here:
http://mybroadband.co.za/vb/showpost.php?p=2219915&postcount=25

 

[Lourens]

I believe this was answered here:
http://mybroadband.co.za/vb/showpost.php?p=2219915&postcount=25

It still does not justify the monthly cost - they do not have a sufficient client base to ensure that it will be cost effective for the merchant.

A good business strategy should be to allow the merchants to make use of the service for at least the next twelve months to create a user base.

At this point in time 99% of the customers that walk into a shop or stumble upon an online merchant will not be in a position to make use of this payment option.

In your first year as merchant, in addition to the usual transaction percentage you will have to recover R4290 to cover the setup and monthly fees - I believe that it will be challenging with no client base that can use this payment option and it would be plain stupid to subsidise this payment option with other payment options.

 

[SWAP Marketing]

It still does not justify the monthly cost - they do not have a sufficient client base to ensure that it will be cost effective for the merchant.

In your first year as merchant, in addition to the usual transaction percentage you will have to recover R4290 to cover the setup and monthly fees - I believe that it will be challenging with no client base that can use this payment option and it would be plain stupid to subsidise this payment option with other payment options.

SWAP's payment system is quickly accessible to everyone with a cellphone. By dialling *130*1313# from your cellphone you access your wallet immediately and can then EFT funds to it, providing payment functionality in a day. It takes a day to link a credit card which enables users to make credit payments anytime and from anywhere.

Naturally, when a service such as SWAP is launched, it begins with no clientbase. And then the clientbase grows. We are a week in and already have many businesses lined up for SWAP Codes. Thousands of SWAP users are enjoying the incredible convenience of buying airtime using SWAP.

Discussions with large groups of companies, major service providers and other payment systems are in advanced phase and by keeping an eye on our website www.swapmobile.co.za, you will in the next few months see masses of businesses signed up for SWAP Codes and we expect the volume of SWAP Users to escalate very quickly.

Contrary to the belief that the R330 fee is excessive, feedback from business owners has indicated that it is in fact nominal. The convenience of being able to receive secure debit and credit payments from customers anywhere and anytime, and the attractive communication features a business is provided with through their SWAP Code USSD menu, easily justifies the hosting fee.

 

[SWAP Marketing]

SWAP was not launched naively, but was birthed from years of careful research and development. Input from top ranking executives from many different industries, as well as professionals and decision makers who understand the dynamics of payment systems have greatly contributed to SWAP's offering and believe that it will succeed.

It is fair to comment on something new and innovative. However, accurate analysis of a deliberately formulated and carefully researched solution is best left for when it has had a chance to prove itself.

Thank you to all who have voiced their concerns and asked relevant questions. SWAP is committed to providing an excellent service, based on the needs and concerns of the public. We trust that the SWAP experience will prove to be convenient, reliable and cost-effective for all. Please visit the SWAP website www.swapmobile.co.za for a wealth of relevant information.

 

[johandutoit2000]

The system is down. What is going on? It has been down for at least 2 days.

 

[Other Pineapple Smurf]

I'll, tell you this. I wish somebody would get something working. I have a business idea and I can't get it off the ground until people can pay me via cell without working through a stupid wasp that takes all the money.

Talk about lowdown sleazy business = WASP's

Please explain?

If your refering to OBS/EBB or premium SMS then you need release how the revenue share works. I'm sure a WASP rep will gladly explain this to you.

If your looking for a mobile payment system where YOU get all the revenue then please approach a m-wallet company.

But if you really want to, then create your own WASP. You will have to pay for the hosting, bandwidth, sms's, network licences, development, etc ...

 

[tco21]

SWAP mobile sucks.

 

[kilos]

Sounds like the M Pesa from Kenya (mobile payment system was introduced 2 years ago) by Safaricom, if the Mobile operator introduces the system it is more readily embraced. Swapmobile I wish every success with your business

M-PESA is aimed at mobile customers who do not have a bank account, typically because they do not have access to a bank or because they do not have sufficient income to justify a bank account. All they need to do is register at an authorised M-PESA Agent by providing their Safaricom mobile number and their identification card. Once registered, customers can:

* Put money into their account by depositing cash at a local Agent
* Send money to other mobile phone users by SMS instruction, even if they are not Safaricom subscribers.
* Withdraw cash at local a Agent
* Buy Safaricom airtime for themselves or other subscribers