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

Tue Aug 6 15:52:18 EAT 2013

Bernard

THe only way other banks would like Equity to open itself up is to give
them its customers' profiles so they can target the good ones.

Payments systems however are already open be it by cheque, cash, RTGS, ATMs
etc the banks talk to each other and we don't notice that one uses
Bankmaster and the other Temenos T24.

Similarly, I'm asking that M-PESA relate the same way with other payment
systems. You shouldn't choose who uses your payment system to pay who
unless it is a case of money-laundering.

In other words, there should be net neutrality, Safaricom can earn its
transaction fees from the massive traffic unimpeded, but it should not be
up to them to determine what nature of business grows on the back of using
their payment system.

I can understand them wanting to protect the customer base they have built,
but it is only a matter of time before technology advances - Whataspp is
becoming a monster in video and image transfer even as Facebook and Google
awaken to it, Bitcoin is becoming a reality and so one How long do you
think it is before you find Money transfer service Apps based on the
Android system alone and not the network operator?

Rather than stay closed, these guys need to open up to every Tom, Dick and
Harry to interface with their API and build businesses on it further
entrenching itself otherwise when Network Agnostic Financial Services
applications come along, it will be a major lost opportunity.

James

On Tue, Aug 6, 2013 at 2:42 PM, Bernard Kioko [Bernsoft Interactive
Limited] <bkioko at bernsoft.com> wrote:

> James,****
>
> ** **
>
> Perhaps am just being narrow minded on this one BUT Equity is also my
> client for the same services we provide Safaricom – therefore no biase on
> either. In one of my previous posts I asked, whether Equity has opened up
> its own infrastructure for integration. Are they asking for something they
> cant give?****
>
> ** **
>
> Equity is the largest bank in Kenya (based on customer base). This also
> means that it enjoys the same relative aspects as MPESA does for being
> largest money transfer. If Equity was to be affected by these same factors
> you have mentioned, we would a banking effect that would be felt by
> consumers. Indeed, we noticed this recently. This means they should be
> opening up their infrastructure to other market segments – going by what
> they are asking Safaricom to do. ****
>
> ** **
>
> That said, I am trying to pick 1 way Equity has opened up its systems for
> integration like they are asking Safaricom to do. I have illustrated one
> (though small) way Safaricom has done this.****
>
> ** **
>
> No one opens up their systems unless they can find value in doing so – not
> even Microsoft. All I have said in my post was, Equity should create value
> for Safaricom to convince Safaricom to open up their systems/lines further.
> ****
>
> ** **
>
> I hope you get my point.****
>
> ** **
>
> ** **
>
> *Kind Regards, *
>
> * *
>
> *Bernard Kioko
>
> *****
>
> ** **
>
> *From:* James Mbugua [mailto:jgmbugua at gmail.com]
> *Sent:* Tuesday, August 06, 2013 1:51 PM
>
> *To:* bkioko at bernsoft.com
> *Cc:* KICTAnet ICT Policy Discussions
> *Subject:* Re: [kictanet] Equity says M-Pesa lines should be open****
>
> ** **
>
> 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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>
>
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> ****
>
>  ****
>
> --
> Regards,
>
> Mark Mwangi
>
> markmwangi.me.ke
>
>
> ****
>
>
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> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> for people and institutions interested and involved in ICT policy and
> 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.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
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