[kictanet] How secure is mpesa

[robert yawe]

Hi,

I am writing this post with a heavy heart as it will likely reverse gains that 
have been made in the ecommerce and ebanking/mbanking environment.

A client of mine, who shall remain unnamed for now in typical Kenya fashion, 
runs a site that accepts payments using the mpesa paybill system.  Due to the 
close similarity in various paybill number there has been a tendency for people 
to send money to the account erroneously.


As the errors have grown over time the client has had to come up with a way to 
manage the reversals so us to reduce the impact on their operations.  Last week 
Safaricom accessed the paybill number's account and initiated reversals without 
notifying them.  

How sure is Safaricom that the person who indicated that they had sent the money 
to the wrong number had not already consumed services?  As the post master 
general in waiting I am concerned that such action would have negative effect on 
ecommerce as reversal of a transaction based on the request of one party will 
definitely harm the other.

The reversed transaction still incurs the owner of the paybill number a cost 
that is not reversed, this issue was previously raised with the former MD of 
Safaricom Mr. Michael Joseph who instructed one of the managers to look into and 
resolve.  It has been over 2 years and the issue is yet to be concluded.

This action also indicates the issue of Safaricom mistreating SME organisations, 
if the error was made with the KPLC or Co-Op Bank accounts would the staff have 
the audacity to make direct reversals on the system?  

I believe the term for such action is blatant impunity that can only 
be practised by a  monopolistic player in an industry.  

With a heavy heart I send this post hoping that it will act as a wake up call 
both to Safaricom and the regulators (CCK & Central Bank) that we need better 
control and monitoring of the money transfer market otherwise we stand to scare 
the public which would result in its slow down.

Regards 
Robert Yawe
KAY System Technologies Ltd
Phoenix House, 6th Floor
P O Box 55806 Nairobi, 00200
Kenya


Tel: +254722511225, +254202010696



 

________________________________
 
From:Eugene Lidede (Synergy) [mailto: eugene at synergy.co.ke ] 
Sent: 04 July 2011 09:05
To: robertyawe at synergy.co.ke
Subject: M-PESA irregularities
 
Robert,
 
As we spoke; 
i)        Safaricom is now directly manipulating transactions in our M-PESA 
account without our consent or any manner of reference to us. Is this proper? 
(see red circle in picture below)
ii)      They never refund monies deducted from us resulting from the said 
reversals despite the fact that we are not party to initiating the “wrong 
payments” (see blue circle). These are wrong payments intended for co-op bank’s 
400200 but instead sent to our 400100.
iii)    This issue has been outstanding since October last year during Michael 
Josephs days. Safaricom has refused to sort it out. Several emails to their 
M-PESA department regarding this issue have gone unanswered even those 
specifically addressed to the referenced Caroline lady.
iv)    With the deteriorating relationship, it might be time we considered 
PesaPal, ZAP and  Orange money seriously as a payment platform for our retail 
subscribers
 
 
 
 
 
Regards
 
 
Eugene Lidede | Chief Technology Officer | Synergy Systems Limited
6th Floor, Phoenix  House, Kenyatta Ave.  | Cell: +254 721 289497/476367 | Tel: 
+254 20 2113163
live.mystocks.co.ke | www.propertykenya.com | www.mystocks.co.ke
Outstanding Online Investment Content Provider 2009– Computer Society of Kenya
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