[kictanet] Mobile money versus Cash: the devil in the details that eludes many SME’s

[Adam Nelson]

There are so many counterfactuals to your statement that it at least
deserves mention:

amazon.com online store
Walmart/Nakumatt physical store

Cash is always better because it has no direct risk but:

1. Cash can be more easily stolen
2. Cash can be skimmed by employees
3. Cash takes time to be able to be used elsewhere (i.e. you typically have
to deposit it into a bank in order to pay vendors)
4. Cash is difficult to account for in real time
5. Cash is hard to physically move in branch networks
6. Cash is annoying for some buyers (i.e. those who want to buy more
product than they have cash for in their pocket)

A 1% fee to use money that is instantly available and represents the full
liquid assets of a consumer and is harder to steal is worth the cost hands
down - and I think most thoughtful business people would agree.

--
Kili.io - OpenStack for Africa: kili.io
Musings: twitter.com/varud <https://twitter.com/varud>
About Adam: www.linkedin.com/in/adamcnelson


On Thu, Jan 9, 2014 at 10:41 AM, Mbugua Njihia <mbugua.njihia at gmail.com>wrote:

> The numbers on some alternative payment channels are; Safaricom on its
> Lipa na Mpesa service takes 1% of each transaction value, Equity Bank  with
> their transport centric service BebaPay which is in partnership with Google
> take 5%, while PesaPal a payment services aggregator levies a 3.5%
> transaction fee on e-commerce, bill payments and invoicing and 5% on
> ticketing.
> For service based businesses, these transaction fees could be considered
> okay, but for those moving product, a deeper analysis will reveal why
> adoption may be stifled.
>
> More here - *http://www.mbuguanjihia.com/business/mobile-money-versus-cash-devil-details.html
> <http://www.mbuguanjihia.com/business/mobile-money-versus-cash-devil-details.html>*
> .
>
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