Money gets more and more mobile
BANKS’ CASH-SEND SERVICES: DEVELOPING AT A PACE Offerings vary on available facilities and price.
Although Absa pioneered in 2008 a way to send money to any cellphone number with CashSend, four of SA’s five retail banks now offer similar services.
FNB and Standard Bank offered eWallet and InstantMoney in 2009 and 2010 respectively. Nedbank unveiled Send-iMali in 2014 and Capitec allows customers to send money to other Capitec clients only.
The services are very similar, allowing bank account holders to send money to a receiver’s mobile phone number via automated PIN codes. The receiver then withdraws cash at that bank’s ATM, or other channels. Because of their flexibility – they don’t require the recipient to have a bank account, the money is available instantly, and is withdrawn as cash – most banks have charged a premium for the service (versus a typical electronic payment).
These have become very popular channels for transactions such as paying domestic help, remittances or sending money to friends. Businesses have adopted these services, too, especially those that use low-skilled/temporary workers. And, in some instances, they’re also a useful get out of jail card, enabling a user to send money to themselves if they’ve lost their wallet and only have their phone with them.
What has diverged substantially is the costs of these services. Absa’s CashSend treats the transaction in the same way as it charges for ATM withdrawals. It’s the most expensive of the four/five for any transaction. It also limits the amount per transaction to R1 000.
In mid-2017, FNB flat-rated its eWallet pricing, regardless of the amount sent. Standard Bank and Nedbank have different prices for transfers below and above R1 000, with Nedbank’s Send-iMali noticeably pricier (aside from Absa). Capitec’s more restricted offering costs the same as an electronic transfer or payment.
Standard Bank has differentiated its InstantMoney offering by extending it to supermarkets and other retailers.
Money can be sent or redeemed via the bank’s electronic channels, selected Spar stores, Makro, Cambridge Foods and Choppies outlets, as well as selected Game and Builders Warehouse/Superstore outlets. The other four banks rely mainly on their ATM networks for redemptions (FNB also offers withdrawals from selected Spar stores).
FNB has extended its eWallet product. It exists as a virtual account and operates in a similar way to a bank account. Receivers get one free withdrawal, but they can also keep money in the wallet to cash out later and use it for prepaid airtime, data or electricity purchases via the bank’s channels. Standard Bank will soon offer a similar mobile wallet service.