[kictanet] IG Discussion 2009, Day 10 of 10 - ePayment Systems and Regulation

[Barrack Otieno]

On Fri, May 8, 2009 at 12:17 PM, Barrack Otieno <otieno.barrack at gmail.com>wrote:

> Walu, i am reliably informed that m-pesa was designed as a microfinance
> solution. Before we were caught by the m-pesa bug there was something called
> Sokotele which was a bit cumbersome because it involved queuing in a banking
> hall (KREP/CELTEL). The fact that these money transfer solutions rely on
> traditional banking system for the so called Trust accounts gives me the
> impression that the e-payment solutions are just a means to an end (the
> money stored in the bank). In this regard i propose that the Kenya Bankeres
> Association and the Communication Commision of Kenya should establish
> frameworks from a banking perspective as well as a technology perspective to
> manage security concerns. Some of those mpesa vibandas are unsecure yet they
> contain a significant amount of float. The other fact is that a good number
> of users from rural areas are technologically challenged and vulnerable to
> con men and women. I chose KBA because it is an umbrella for stakeholders in
> the banking sector and CCK the regulator for the technology sector
>
>
> On Fri, May 8, 2009 at 8:27 AM, John Walubengo <jwalu at yahoo.com> wrote:
>
>>
>> Thanx Mwende for your 4day moderation on Security issues. Ofcourse more
>> credit to the contributors whose insights am sure are being digested by
>> stakeholders...feel free to make belated contributions.
>>
>> Today I want to introduce the second last theme before Mwende takes us
>> through the Closure and Way forward on Monday 11th May 2009.  Basically, we
>> want to review the various "hybrid" electronic payments systems and their
>> corresponding legal and regulatory frameworks.
>>
>> Hybrid electronic payment system exclude the traditional banking systmes
>> which do have time-tested and proven legal/ regulatory frameworks. Typically
>> they refer to emerging e-Payment systems that have been best exemplified by
>> the MPESA/Zap phenomena. Such systems cut accross multiple industries
>> (Banking, Telecommunication and IT) and present a huge challenge in terms of
>> regulation/legislation.
>>
>> In developed economies, such systems have multiple legislation/regulation
>> that demands that the entities involved in such ePayment services abide by
>> strict Data Protection Acts which protect the customer data/privacy as well
>> as other eLegislation (eCrime, eTransaction) that provides deterrence and
>> assurance mechanism.
>>
>> In layman terms, consider an MPESA/ZAP User who sends value of 30,000Ksh
>> from their mobile phone account to the parents upcountry when the following
>> happens:
>> 1. Disaster strikes and the electronic records are lost (whose liable?-it
>> happened in 9/11, Tsunami, etc)
>> 2. The Parents claim that they didnt recieve the money or worse still the
>> sender claim they never send the money (non-repudiation issues)
>> 3. An eCrime suspect is charged with altering ePayments records at the
>> source (inside job/judicial issues)
>>
>> In general, do we have frameworks to protect consumers and businesses
>> against such risks above and do we have investigative and judicial capacity
>> to administer e-Crime related justice? What role should the Regulator (CCK),
>> Banking (CBK), Police and Judiciary (NOT) have in these frameworks?
>>
>> Lets try and give views within today (1day)...
>>
>> walu.
>>
>>
>>
>>
>>
>>
>>
>>
>>
>>
>> _______________________________________________
>> kictanet mailing list
>> kictanet at lists.kictanet.or.ke
>> http://lists.kictanet.or.ke/mailman/listinfo/kictanet
>>
>> This message was sent to: otieno.barrack at gmail.com
>> Unsubscribe or change your options at
>> http://lists.kictanet.or.ke/mailman/options/kictanet/otieno.barrack%40gmail.com
>>
>
>
>
> --
> Barrack O. Otieno
> ISSEN CONSULTING
> Tel:
> +254721325277
> +254733206359
> http://projectdiscovery.or.ke
> To give up the task of reforming society is to give up ones responsibility
> as a free man.
> Alan Paton, South Africa
>



-- 
Barrack O. Otieno
ISSEN CONSULTING
Tel:
+254721325277
+254733206359
http://projectdiscovery.or.ke
To give up the task of reforming society is to give up ones responsibility
as a free man.
Alan Paton, South Africa
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20090508/8544f244/attachment.htm>