Converting Airtime to Cash

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zagame

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Question

Is it possible to convert airtime to cash, the reason I am asking is I have a client who has a small cash & carry in a location, and he has been robbed twice, as has his customers on payday now he wondered if the regular customers could sms or call the "shop" and pay for it that way, closest thing I could find is Daopay.

That way his clients dont need to carry to much cash and month end he could convert it to cash.

obviously cellphone theft would increase, but maybe using a unique pin/password to make transactions would fix that.

Now I am not saying that this system would be perfect, but if somebody could send me in the right direction it would be a interesting project to tackle.

I am throwing ideas around, but since I dont know much on cellphone rules/regulations etc. thought i could come brainstorm here ;)
 
PsyWulf said:
Mimoney?
Click to expand...

thanks for the link
interesting but the only problem would be imo

You can use mimoney wherever you see the mimoney logo. mimoney merchant shops are growing each day – soon you will be able to spend your mimoney at most stores – online and mobi sites! Keep checking our website to see which merchants have joined the mimoney network.
Click to expand...

mimoney can be purchased at participating merchants that SELL
mimoney (at self-service terminals); via EFT (electronic fund transfers) at any RSA bank or from your online banking facility.
Click to expand...

the penetration would be slow in poorer communities, direct airtime to cash would be first prize

since loyalty cards don't really have high penetration/outlets in rural communities.

Everybody has a cell and buy airtime, Daopay seems to be the closest solution at the moment I have mailed them to see what their charges are

from Daopay website

With DaoPay, customers can charge your product to their phone bill. They just dial a service number and without ever giving away any personal or financial information, they hold the line for a minute or two until the product price has been charged to their bill. Probably the only way to make buying easier is to pay by SMS. Which is why we do that, too.
Reach additional audiences.

Customers enjoy DaoPay because it's so convenient and at the same time it's more secure than any other payment method. No credit cards, no bank accounts or any other contracts - just dial a number or send an SMS and you're all set. And, of course, everyone has a telephone - there are more than 3 billion worldwide, twice as many as there are Visa cards, and even fifty times as many as PayPal accounts. By adding DaoPay as a complementary payment option, you reach more people and receive more payments than with any other payment method alone.
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http://www.daopay.com/business/how-it-works.php

A local product like this would rock, small B&B's could book/take payment over the phone etc.

daopay is to expensive to use at clients store since he would have to up his prices significantly

South Africa 5.00 ( cost) 2.05 (pay out)
 
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Register a premium cell number so customers can just send an SMS to pay the same way people can SMS and pay for ringtones. Not sure about the costs involved though.
 
psichron said:
Register a premium cell number so customers can just send an SMS to pay the same way people can SMS and pay for ringtones. Not sure about the costs involved though.
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lol you read my mind ;)

I am busy looking into that now - thanks bud

I think that mobile operators are missing out on a goldmine, if they could set up a affordable system, they could give the banks a run, since more people have cellphones than bank accounts.

Will post info on premium numbers as I get it

:( they are even more expensive than daopay

Our model is to only charge you a service fee for premium sms and pass 100% of the effective revenue offered by the Cellular Operators across to you.

Please note that we can only allocate your Revenue Share based on what we receive from the the Networks, and when we receive it.

Payment will be 90-120 days after the month in question, however, you can invoice us 2 months after the said month.

Please also note that as yet we are unable to offer discounts for Charities on the Revenue Share as these are determined by Networks.
Click to expand...

Your Share Your Share Your Share
Premium Number Premium Band Vodacom CellC MTN
1. 32665 R1.00 R0.12 R0.10 R0.14
2. 33600 R1.50 R0.43 R0.40 R0.42
3. 34665 R2.00 R0.75 R0.70 R0.69
4. 35601 R3.00 R1.34 R1.29 R1.25
5. 36225 R5.00 R2.61 R2.49 R2.37
6. 37555 R7.50 R4.17 R3.98 R3.76
7. 38665 R10.00 R5.73 R5.47 R5.16
8. 39555 R15.00 R8.84 R8.45 R7.98
Click to expand...

depending on the customers mobile provider also decides on your payout, so pricing items would be a nightmare
 
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Problem is airtime isn't cash, airtime is sold at a discount, plus there are "ongoing commission" deals with SPs that the networks have to honour.

20%+ of the face value of the airtime can get eaten by this.

There is an obvious need for mobile payment solutions, but there is a "chicken-and-egg" situation, merchants will equip themselves to accept "virtual currency" once demand justifies it, people will sign up for virtual currency once enough merchants accept it.

A number of initiatives I'm aware of:
www.pocit.co.za (links mobile to existing payment mechanisms)
www.ukash.com (Buy ukash at P&P spend it online)
Absa's cashsend, from an Absa account, tranfser funds to a recipient via SMS, collect from an ATM
Shoprite's money transfer, send funds via branch network.

None of these are a panacea, all need to gain traction.

Methinks, best chance for success is an M-pesa type solution driven by Vod or MTN (m-charge doesn't count).
But there are regulatory issues to deal with. Deposit taking institutions require a banking license. This is difficult and costly.

So not yet, maybe soon! :)
 
KaasP said:
Problem is airtime isn't cash, airtime is sold at a discount, plus there are "ongoing commission" deals with SPs that the networks have to honour.

20%+ of the face value of the airtime can get eaten by this.

There is an obvious need for mobile payment solutions, but there is a "chicken-and-egg" situation, merchants will equip themselves to accept "virtual currency" once demand justifies it, people will sign up for virtual currency once enough merchants accept it.

A number of initiatives I'm aware of:
www.pocit.co.za (links mobile to existing payment mechanisms)
www.ukash.com (Buy ukash at P&P spend it online)
Absa's cashsend, from an Absa account, tranfser funds to a recipient via SMS, collect from an ATM
Shoprite's money transfer, send funds via branch network.

None of these are a panacea, all need to gain traction.

Methinks, best chance for success is an M-pesa type solution driven by Vod or MTN (m-charge doesn't count).
But there are regulatory issues to deal with. Deposit taking institutions require a banking license. This is difficult and costly.

So not yet, maybe soon! :)
Click to expand...

dammit !!

unfortunately what you say makes sense, but looking at other countries similar systems are in place. :)

taking for example small B&B's , spaza shops etc. the cost of setting a merchant account is not viable for them.

The majority of south africans don't have credit cards / bank accounts and this would be a simple, effective payment system.

Will have to find an alternative method untill then, maybe a instore gift voucher system, or get the clients to set up a bank account ( not easy - seems to be mistrust in banks involved) and then setting up a secure pc ( cemented into the wall :) ) so that they can do eft transactions.
 
hi i fund this thread through google. A few years on, is there any progress on this?
 
fransmarius said:
hi i fund this thread through google. A few years on, is there any progress on this?
Click to expand...

I have been working on this for many moons now, there is only one way that it will work in SA as the networks block most routes.
I would love to share it but unfortunately I can't.

Once we, hopefully, have it running I will shout with an update.
 
Hey Ant_man, would like to chat to you regarding your progress on this. I'm busy with something else and would love to use your possible solution for payment sent you a friend request
 
Hi Ant-Man

I'm looking for the same solution and is like to engage you on your developments. I've sent you a friend request.

Thanks

Maesela
 
I went to a website and bought an MP3 track with R20 airtime . Trying to figure out how this is done. And trying to think also on how much was the track really worth. (How much is the Seller really getting )
 
A152257 said:
I went to a website and bought an MP3 track with R20 airtime . Trying to figure out how this is done. And trying to think also on how much was the track really worth. (How much is the Seller really getting )
Click to expand...
From what I understand it's an agreement between the vendor and network, they convert the airtime into funds and pay the vendor the funds less a fee/commission. Networks must have a vendor platform of sorts and vendors can join to gain access to adding the airtime payment option to their mobile webstore. Probably involves some vetting by the networks to prevent scams.
 
project

ant_man said:
I have been working on this for many moons now, there is only one way that it will work in SA as the networks block most routes.
I would love to share it but unfortunately I can't.

Once we, hopefully, have it running I will shout with an update.
Click to expand...

Hi Antman,

Is the project in full full swing now?

Regards
Gerhard
 
12 years later... still nothing on development to convert airtime back into cash? I accidentally bought way too much airtime via banking app. I want to cry!
 
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