That is a good suggestion but the licensing involved is crazy. It also requires very high investments in capital and yes we are headed that direction but we need to grow from somewhere. Currently kcb is fully integrated with mpesa and am sure others are coming there soon. It will give us an advantage on the system. Yes, point taken only it will apply in the near future. On 1/14/10, John Maina <mwasjunior@gmail.com> wrote:
Hi Mugo, Great work. few points.
Is it possible to strike a deal with local banks to issues some form of merchant accounts that allow traders to receive online payments, Im thinking of a system that works as follows:-
*Authentication* 1.Client decides to purchase online and inputs Mpesa/Zap information. 2. Processing service routes mpesa information to relevant telecom company ie Safcom,Zain, Yu for authentication. 3.Processing service sends response to merchant site which then accepts or rejects purchase.
*Payment* 1. Merchant company requests settlement from processing service. 2. Processing service invoices appropriate telecom company 3. Telecom company transfers money to merchant company's bank and processing company gets it's agreed processing fee.
*Advantages*
- By making transfers to merchant companies bank account, the company does not face limits it would face if money was being transfered to a phone. - This system would allow clients to make purchases online using mobile money details they already have, making the system open to all 8million mobile money users in the country. - By making transaction fees as a % of sales, it allows you as the processing service to get commission commiserate with volume of transactions handled
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