On 17 October 2023, MWC 2023 returned to the Kigali Convention Centre in Rwanda, the event brings together policymakers and global business leaders for three days of discussion on innovations in mobile technology and Africa’s rapidly evolving connectivity ecosystem.
In this regard the MTN and Airtel telecommunication companies have done discussions with VeryPay Company to help the mobile money customers to make transactions at low prices comparing to the usual ways of transactions they make. And other digital payment like ton Tax moto , paying in Supermarket and making other payment and this system is easy to use and safe.
Mr. David Drever, the Chief Commercial Officer for VeryPay , discusses a financial system that allows people in emerging African markets to make contactless payments without the need for a traditional bank account or credit cards. They aim to promote digital transactions and financial inclusion by collaborating with mobile wallet operators to create a closed-loop payment environment. This system enables individuals to make quick and convenient payments at merchant locations, reducing the reliance on cash in these markets.
Mr. David emphasizes the significance of achieving financial inclusion, particularly for individuals who lack access to traditional banking services. They aim to leverage their transaction engine and digital payment system to generate digital records for underserved groups, such as small farmers who predominantly use cash. By collecting data from these farmers and sharing it with lenders like banks, they intend to provide a digital foundation for lending, addressing the current lack of digital financial history. This is accomplished through an agent-based application serving as a digital input mechanism.
“So it’s very important to get more people financially included, especially those who are non-banked and under-banked. So a real goal today is how can we use our transaction engine, how can we use our digital payment system to create digital records for, for example, small farmers who are using cash today” He said.
Mr. David also highlights their innovative approach to the market, explaining that they have developed a system that doesn’t rely on traditional banks, payment service providers, or card schemes like Visa and Mastercard. Instead, they collaborate with mobile money operators such as Orange, MTN, and Airtel, allowing them to share revenues directly with these operators. This approach is more cost-effective and involves integrating existing contactless payment technology into the mobile money environment. They stress the importance of partnering with others to educate the market, especially in regions where cash transactions are still prevalent.
“The existing systems today use banks, use payment service providers, use issuers and schemes like Visa and Mastercard. We don’t rely on any of those parties. So we have developed a system that can be used with a mobile money operator. So the benefits are that we don’t rely on sharing revenues with banks, with payment service providers, with the card schemes” He said.
He outlines a strategy to enable individuals without smartphones to make transactions in merchant-enabled stores using Verypay tokens, which are either payment cards or wearable devices.
He said that they believe this approach could be groundbreaking but acknowledge that it will require time, effort, and partnerships across various sectors, including agriculture, transportation, retail, and moto-taxi services. While their company focuses on Fintech, payments, and financial inclusion, they stress the importance of collaborating with local stakeholders and express their enthusiasm for discussions with the Bank of Kigali and various Fintech players in Rwanda.
According to Mr. David the VeryPay platform is currently operating in Uganda, and they plan to start working in Rwanda by next year.
By Carine Kayitesi