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

Wed Aug 7 14:34:26 EAT 2013

I subscribe to this definition of an open system: https://www.google.com/search?q=define:+open+system

Businesses, unlike individuals have a plethora of verbs that characterize transaction management; these include reconcile, verify, countercheck, reverse, audit etc. MPesa only provides one way to get anything done from a backend perspective: via a browser, not any browser though, they recommend Internet Explorer specifically on Windows XP. Chrome can get you in, but Firefox will not. That is not behavior expected of an open system. 

For a banking institution and one with Equity’s perceived volumes, constraining “automatable” business processes to manual browser logins is to deliberately impede business to say the least, especially considering the Safaricom end of the transaction is automated and further considering that each manual login probably boils down to an expense at Equity and new opportunities for errors. It is also worth noting that the MPesa web interface whereas functional, is generally unsuited for voluminous transactional processing being that its designed to be primarily driven by a pointing device.

In the light of the above and given the basic accounting principle of double entry how does Equity efficiently reconcile its books against MPesa? What are the associated costs?

Isn’t it straight forward that what Equity is rooting for is an operable bidirectional API? And if it is, isn’t the business case equally straight forward? 

But come to think of it, even the implementation of 0722-000000 – their core business – is not open, biashara ya kando ndio watafungua?

Regards

From: kictanet [mailto:kictanet-bounces+eugene=synergy.co.ke at lists.kictanet.or.ke] On Behalf Of Walubengo J
Sent: Tuesday, August 06, 2013 7:41 PM
To: Eugene Lidede
Cc: KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] Equity says M-Pesa lines should be open

@ James G. Mbugua,
jst reading this...

 I do have to google you - we may have been brothers in our previous lives..this statement from you is straight from my mind and I quote:  

>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

I personally think Safcom can double or triple its MPESA revenues if they crossed that mental shift and "liberally" allowed innovations to happen at the edge rather than at the center, as they simply collect commissions appropriately.

I know intellectual or trade secrets have been cited as a way of limiting the APIs or not publishing them. But I dont think mobile payments systems are trade secrets on the same scale as the "Coke recipe".  Indeed Airtel, then KENCELL was the first one to do money transfer over the GSM networks in Kenya. So the technology is already "known" /"open" from a technical point view. It is not a trade secret.

What we have now is simply "Gatekeeping" exercises - perhaps at the expense of both Safaricom (reduced revenues) and the bigger Kenyan society in form of  delayed accelerated innovations that would otherwise be bubbling at the edge of MPESA.

walu.

  _____  

From: James Mbugua <jgmbugua at gmail.com>
To: jwalu at yahoo.com 
Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke> 
Sent: Tuesday, August 6, 2013 1:50 PM
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 <mailto:kictanet-bounces%2Bbkioko> =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 <http://kenya.or.ke/>  | The Kenya we know

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