Telecoms turn battle to money transfer business
Mar 28, 2010
UGANDA Telecom (utl) has launched M-Sente, its mobile money transfer platform.<br>This brings to three the number of telecoms with the mobile cash transfer services on the local market after MTN’s mobile money and Zain’s Zap last year.<br>
By David Mugabe
UGANDA Telecom (utl) has launched M-Sente, its mobile money transfer platform.
This brings to three the number of telecoms with the mobile cash transfer services on the local market after MTN’s mobile money and Zain’s Zap last year.
Using the phone handset to transfer money has revolutionised banking and financial transactions across the East African region like no other product in the last two years since Safaricom’s M-Pesa pioneered the service in Kenya. Today, it is a global point of reference.
Reports indicate that uganda telecom got the license almost at the same time as its competitors.
utl’s M-Sente platform is one of the most competitive, costing sh500 to send money to a registered user, while MTN charges up to sh800 for the least transaction.
Zain’s ZAP service is the most competitive in the industry with a minimum transaction of sh250 short message charged to send sh5,000.
Tesfai Menghistab, the chief technical officer, explained that the utl M-Sente service is unique in that current subscribers do not have to swap their SIM cards because the mobile commerce system is connected to the Zain network and not onto the SIM card.
“You avoid the process of going through the phone menu and just dial *500? and straight to the tool kit,†said Menghistab at the launch at Oasis Shopping Mall in Kampala.
For M-Sente, a customer can only send a maximum of sh2m a day. To ensure a smooth flow and balance between those who want to send money and receive, Menghistab said utl will ensure that agents have a steady flow of cash before they are authorised to represent the company.
There are instances even in the Kampala city centre where some agents of the already existing service providers turn down those who want to send money claiming their systems are heavy and can only do a one-sided transaction.
MAP International, a provider of electronic banking services, will enhance the technology backbone which automatically upgrades a user’s SIM cards using MAP’s USSD technology.
The entire transaction system is monitored and regulated by the central bank.
UGANDA Telecom (utl) has launched M-Sente, its mobile money transfer platform.
This brings to three the number of telecoms with the mobile cash transfer services on the local market after MTN’s mobile money and Zain’s Zap last year.
Using the phone handset to transfer money has revolutionised banking and financial transactions across the East African region like no other product in the last two years since Safaricom’s M-Pesa pioneered the service in Kenya. Today, it is a global point of reference.
Reports indicate that uganda telecom got the license almost at the same time as its competitors.
utl’s M-Sente platform is one of the most competitive, costing sh500 to send money to a registered user, while MTN charges up to sh800 for the least transaction.
Zain’s ZAP service is the most competitive in the industry with a minimum transaction of sh250 short message charged to send sh5,000.
Tesfai Menghistab, the chief technical officer, explained that the utl M-Sente service is unique in that current subscribers do not have to swap their SIM cards because the mobile commerce system is connected to the Zain network and not onto the SIM card.
“You avoid the process of going through the phone menu and just dial *500? and straight to the tool kit,†said Menghistab at the launch at Oasis Shopping Mall in Kampala.
For M-Sente, a customer can only send a maximum of sh2m a day. To ensure a smooth flow and balance between those who want to send money and receive, Menghistab said utl will ensure that agents have a steady flow of cash before they are authorised to represent the company.
There are instances even in the Kampala city centre where some agents of the already existing service providers turn down those who want to send money claiming their systems are heavy and can only do a one-sided transaction.
MAP International, a provider of electronic banking services, will enhance the technology backbone which automatically upgrades a user’s SIM cards using MAP’s USSD technology.
The entire transaction system is monitored and regulated by the central bank.