Mobile money transactions in South Africa
Mxit is partnering with Standard Bank to provide real money transactions for its South African users through Mxit Money, its mobile commerce platform. The partnership will allow Mxit users to send money to anyone with a mobile phone to other Mxit users without charge. They will also be able to withdraw cash, buy Mxit Moola, airtime and electricity using money from their Instant Money account via Mxit Money. Instant Money is an electronic currency from Standard Bank used mainly for P2P remittances where one or both parties are usually unbanked. It is also used to facilitate online payments without the need for a credit or bank account. Mxit Money is a gateway m-payment service which allows users to transact using their mobile phones. Users can access Mxit Money as a contact within the Mxit platform or by downloading the stand-alone iPhone app.
According to research, by the end of 2012 South Africa will have 14 million of its mobile users making m-payments totalling R7billion while 124 million of Africa’s mobile users will be making m-payments totalling R55billion. This figure is expected to increase to 171 million mobile payers, valued at R76 million.
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