[kictanet] Equity says M-Pesa lines should be open

Tue Aug 6 13:50:42 EAT 2013

Bernard

Far be it from me to suggest that your business with Safaricom clouds your
outlook, but I think as a software developer you understand what we mean.

Why do you have to present it to Safaricom for them to like it and then
give greenlight further development?

Even Microsft Windows is not that closed. At least there are specs for
third party software development.

THe problem here is that Safaricom cannot be both the owner of the platform
and also the gate keeper of innovations that may run on it. We have not
stopped them from earning money by coming up with standard licensing fees,
but it should not be up to them to decide which idea they like and
therefore should run on a payment system.

This is the same problem AT&T had because they simultaneously owned Bell
Labs which churned out landmark software technologies, they could decide
that a technology that seemed a threat would not run on their network yet
they were virtually a monopoly the way M-PESA by market positioning is a
virtual monopoly.

There are thousands of programmers who could come up with software or games
that could seamlessly integrate M-PESA as a payment platform for their
services without having to go through an approval process where SafCom
technical people are the judges and jury particularly given the integrity
issues that have long been raised of these SafCom IT guys when it comes to
dealing with developers.

But even then, there is the real national security threat of saying that
35% of our GDP passes through M-PESA when there is no credible redundancy.

What are we saying? That if MPESA is out of a week the economy stagnates?
Potential systemic risks such as banking systems heavily exposed to one
economic sector are heavily discouraged and neither should we say our
national transactions are 35% exposed to one payment system and be happy
about it.

This is nothing against the folks at SafCom, it is just what makes sense
for any right-thinking citizen.

Regards

James

On Tue, Aug 6, 2013 at 1:12 PM, Bernard Kioko [Bernsoft Interactive
Limited] <bkioko at bernsoft.com> wrote:

> I actually believe that Safaricom has already opened up MPESA and will
> continue to open it up but that depends  on the value the opening up
> presents to Safaricom. I always like to use examples that are based on
> experiences. ****
>
> ** **
>
> My company a year ago developed a system for MPESA that makes MPESA
> transactions realtime – this is why when you pay DSTV your account gets
> reconnected immediately or when you deposit money to your bank from MPESA
> its realtime or why your KPLC payment is more realtime than it was before.
> We developed this system called “MPESA Instant Payment Notification”
> originally for use on Kenya Airways ticketing then presented it to
> Safaricom and they liked the idea thus opened up MPESA for us to integrate
> with and so most if not all of MPESA Paybill /Bug Good Transactions are now
> processed through this locally developed system. ****
>
> ** **
>
> Isn’t this opening up MPESA? I think Equity must justify the opening up
> they wish for and give value to Safaricom in order to bring Safaricom to
> their advantage.****
>
> * *
>
> * *
>
> *Kind Regards, *
>
> * *
>
> *Bernard Kioko
> *Chief Executive Officer**
>
> Bernsoft Interactive Limited****
>
> P.O.Box 15177-00100 Nbi,Kenya****
>
> Office:   +254-703-080-000****
>
> Mobile: +254-722-540-883****
>
> ** **
>
> *From:* kictanet [mailto:kictanet-bounces+bkioko=
> bernsoft.com at lists.kictanet.or.ke] *On Behalf Of *Ali Hussein
> *Sent:* Tuesday, August 06, 2013 12:47 PM
> *To:* bkioko at bernsoft.com
>
> *Cc:* KICTAnet ICT Policy Discussions
> *Subject:* Re: [kictanet] Equity says M-Pesa lines should be open****
>
> ** **
>
> James ad all****
>
> ** **
>
> Well put. The difference though is that industry's open up themselves for
> open standards. Rarely do companies. ****
>
> ** **
>
> Its incumbent upon TESPOK to convince Safaricom to open up its Mpesa
> system 'fully' as many listers have suggested. The fact is that the
> Safaricom chaps are clever enough to see this coming (and if they are not
> unfortunately they will go the way of Telkom Kenya). ****
>
> ** **
>
> Rarely has government intervention in open standards helped the people
> they are supposed to help. Even the Banking sector clearing house is run by
> Bankers with the hawkish eyes of central bankers looking on.****
>
> ** **
>
> Safaricom will open up Mpesa fully - when they are good and ready and not
> a moment sooner. That's my take.   ****
>
> Ali Hussein****
>
> CEO | 3mice interactive media Ltd****
>
> Principal | Telemedia Africa Ltd****
>
> ** **
>
> +254 713 601113/ 0770 906375****
>
>
>
> ****
>
> "The future belongs to him who knows how to wait." - Russian Proverb****
>
> ** **
>
> Sent from my iPad****
>
>
> On Aug 6, 2013, at 11:15 AM, James Mbugua <jgmbugua at gmail.com> wrote:****
>
> Openness****
>
> ** **
>
> I have always felt very strongly about this issue and I agree M-PESA
> should be open. I used to barge Michael Joseph relentlessly about this.
> Open first in the sense that third parties can interface their products on
> their API but secondly and more importantly, open to talk to other
> platforms the way banks talk to each other. I can withdraw money from Pesa
> Point or another non-Barclays quite easily.****
>
> ** **
>
> The fact is we cannot let platforms that stifle innovation continue to
> prosper. AT&T was finally split up in 1984 not because of its overwhelming
> market dominance, but that IT WAS REFUSING TO ALLOW NEW INNOVATIONS TO WORK
> ON ITS PLATFORMS thus overall stifling technology.****
>
> ** **
>
> In the same way, this is not a sustainable position for M-PESA if it
> projects its medium to long-term horizon, surely it must see that even the
> government will not be comfortable constantly hearing that this % of our
> GDP passes through M-PESA.****
>
> ** **
>
> If I was Safaricom I would be strategizing on how to open up the platform
> as painlessly as possible before the combination of disruptive market
> forces and government national security interests converge.****
>
> ** **
>
> Already I can deposit money into my bank account with M-PESA and withdraw
> it with Airtel Money. Surely, you don't need to be a genius to see that you
> don't need that middle man called the bank if the demand for the service is
> there.****
>
> ** **
>
> Regards****
>
> ** **
>
> James****
>
> ** **
>
> On Tue, Aug 6, 2013 at 9:15 AM, Mark Mwangi <mwangy at gmail.com> wrote:****
>
> In my opinion what Equity is asking for is for a common platform aka a
> common account that can be credited and debited by airtel money, yu cash
> orange money, tangaza etc in the manner that a visa credit card is open
> game for any merchant, bank etc. This way M-pesa becomes a platform and not
> a safaricom product. ****
>
> ** **
>
> I actually don't see how Safaricom looses in this scenario. Exponentially
> more transaction fee collections, Increased dependence by industry players,
> maintain the intellectual property and ownership of the platform etc. ****
>
> ** **
>
> Maybe they are reluctant due to technological immaturity. I also wouldn't
> want to embarrass myself after being feted worldwide. ****
>
> ** **
>
> On Mon, Aug 5, 2013 at 8:31 PM, Kivuva <Kivuva at transworldafrica.com>
> wrote:****
>
> @areba, what Equity wants, if I'm not wrong is the ability for you to
> setup a club within MPESA where you can use the platform to transfer
> funds without them passing through Safaricom.
>
> The MPESA platform becomes  an enabler.  Unless anybody else has a
> better understanding.****
>
>
> --
> ______________________
> Mwendwa Kivuva
> twitter.com/lordmwesh
> kenya.or.ke | The Kenya we know****
>
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>
>
> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
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> ****
>
> ** **
>
> --
> Regards,
>
> Mark Mwangi
>
> markmwangi.me.ke
>
>
>
> ****
>
>
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> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
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