[kictanet] Paypal Value Proposition?

[Dennis Kioko]

Let me try helping.

Assuming that I somehow acquired a container of the rare Nexus 4 phones,
for sale in Kenya. Now, I don't own a shop, and may not be interested in
setting up one, or may have one, but would like to target the upward
mobile, the likes of Munyao Longwe, who are Internet Savvy.

I therefore create a site where Munyao can come and order himself a phone,
for delivery to his home or office, perhaps through Aramex or another
courier. Now, Munyao has to pay me before I deliver the phone. He can do so
in a number of ways, perhaps by M-Pesa, Equity Bank card, Visa , Mastercard
Debit or Credit.

To collect the money from Munyao, I would need to give him my M-pesa
number, and wait for him to pay, or present a card swiping machine from
which he can swipe his preferred card. But this is quite cumbersome and
introduces the need of reconciliation and possibility of errors - dispatch
of an item I am unsure is paid for, or non-dispatch of a paid for item
since I can't find the records.

I therefore decide to come up with a system that will accept whatever
payment system Munyao presents, be it Airtel Money, or his Cayman island
issued Credit Card. The system will process his payment and show all
payments in one dashboard. Now, I would need to hire someone to do such a
system, or another to configure the Open Source PesaPi (Google).

However, one enterprising Liko has developed PesaPal, which does payments
from a large variety of sources, and presents the info from the same in a
standard output. He then charges me a percentage of sales on every
transaction, or perhaps a graduated fee like M-Pesa.

With his system, my work is reduced to just looking at whether payments
have been made against orders, and for how much.

Furthermore, I can automate further by using PesaPal's Application
Programming Interface to link my Point of Sale system with PesaPal.

Yo therefore make an order - pay via Pesapal - my PoS acknowledges payment
and credits your shopping basket with the item, and allows it to be checked
out, or delivered. I can therefore go sit by my container all day, await
notifications from PesaPal, and dispatch mobile phone through courier.

I no longer have to call Longwe to ask how he will pay, or later reconcile
my payments against my dispatched orders, since all this is done
automatically.

Hope this sort of explains it, or did I make things worse?
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