The Problem...
Despite the launch of many forms of mobile payments in Zambia, there has not been an increase in their use leading to the question of whether it is a viable business segment especially that it is viewed as a competitive advantage by banks and mobile network operators.
These mobile payments vary from bill payments, purchasing of prepaid mobile airtime or power units to money transfers.
The Reasons...
Many of those with bank accounts in Zambia (the banked) prefer paying for goods and services with cash despite the convenience of using a cellphone to perform the transaction. Even when it comes to making transfers to friends and family, they would rather withdraw the money and walk to a post office to use MoneyGram.
To add to this number, many have a distrust for technology and it's perceived advantages over cash. They prefer physical contact with bank tellers, those selling airtime, or Zesco prepaid units.
Consumers would rather send money using moneygram and Zoona than open an mobile money account/send an ewallet and encourage the recipient to open a similar account. The word is not spreading fast enough to achieve critical mass. Zambia has a long way to go before they reach even a third of Kenya's M-Pesa.
A high percentage of Zambians are 'unbanked' meaning the mobile payments offering from banking institutions loses potential users.
What Can Be Done....
The high number of unbanked Zambians offers an opportunity for mobile network operators to offer some form of banking that offers mobile payments as a part of its product suit.
Banks need to also offer fault-free, seemless, services on mobile devices be it smartphones or simple phones so as not to segment or fragment the customer base.
User education is also key at the point of account opening or signing up for a mobile number. Customers need to aware of the capabilities that exist on mobile banking/payments. Highlighting the convenience and ease of such services is a big selling point. Telling someone that they don't need cash to pay for services is a plus.
The age of cash and walking into banks for account inquiry services should slowly be behind us.
We like pulling government into everything and I am of the opinion that some form of legislation compelling Zambians to open accounts or be less reliant on paper based transactions could be the push necessary.
In the absence of government will it is up to the private sector to be the driver as well as you and me.
If you don't use mobile payments and you're reading this,shame on you....Just kidding.
