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

[Ali Hussein]

+1 Adam. 

I think we are seeing the usual big boys of cashless payments being dis-intermediated by the Safaricom's and Squares of this world.

One up for a Flat World!  

Ali Hussein

+254 0770 906375 / 0713 601113

"I fear the day technology will surpass human interaction. The world will have a generation of idiots".  ~ Albert Einstein

Sent from my iPad

> On Jan 9, 2014, at 10:51 AM, Adam Nelson <adam at varud.com> wrote:
> 
> 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
> 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
>> .
>> 
>> _______________________________________________
>> kictanet mailing list
>> kictanet at lists.kictanet.or.ke
>> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>> 
>> Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/adam%40varud.com
>> 
>> 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 not spam, do not market your wares or qualifications.
> 
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
> 
> Unsubscribe or change your options at https://lists.kictanet.or.ke/mailman/options/kictanet/info%40alyhussein.com
> 
> 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 not spam, do not market your wares or qualifications.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20140109/79f50cf1/attachment.htm>