Mobile payments are the most discussed biz opportunity in Africa and a few mobile carriers that have the capability to deploy it have earned amazing revenues, in the tunes of 100s of millions of dollars added to their balance sheet each quarter, the likes of Safricom and even MTN Mobile Money.

The question now lies on how this models even with their cumbersome paper trails and a local kiosk for remittance; happen to be extremely successful. Take for instance the solution of MTN Mobile Money. According to Mambe a friend in Cameroon, the process of sending and receiving payments entails

1. Sender Sending an SMS to MTN instructing release of payment to Recipient
2. MTN Sending an SMS to the Recipient
3. Recipient Visits Service Centre and Shows them the SMS
4. Recipient Fills up a Paper Form with his Signature
5. Service Centre Releases Payments to Recipient

The amazing reality about this process is, its considered easy and simple with all the hassles of travelling to the centres, filling up the forms and signing etc.

The question that I have to adopters of this Mobile payment solution in Africa is

1. What makes this different from normal interbank transfer? Is it the SMS notifications? Is it the availability of Service Centres across the nation?

2. How is this different from Interbank or Intrabank money transfers or even Internet Banking?

3. What is the dispersion of Mobile Service Centres across the average Africa nation in general?

4. Are traditional banking solutions really that bad, that any alternative convenient solution around would be easily adopted?

5. What’s the average cost of receiving and sending money via this Mobile payment solutions?

I am asking all this questions because I believe a mobile payment solution should address a lot of problems such as

1. Micro-payments:- I should be able to go to the barber shop or even the neighbourhood stall, or the cinema or even pay my cab fee with just my mobile phone without any paper trail etc.

2. Transaction cost:- The cost of using the mobile payment solution should be as low as 1% of the transaction.

3. Paper Trails :- Paper trails should not exist, mobile payments should be 100% electronic; sms based receipts, reusable balance at the shop next door, a wallet for every single transaction I do so I would only need to use the service centre facility, if and only if I need the cash for services that require cash. This services that even require cash should be engulfed by this solution with time.

4. Convenience and Access to Services :- I should not have to travel to the nearest Service Centre to check my balance or even Remit Payments.

5. Ease of use :- My grandma, should be able to understand how it works and how to use it effectively without hours of explanation and training. Graphical illustrations should do just great in not more than 3 Easy Steps. 1. CLICK 2.Type 3. SEND

I would appreciate if users of this solution in Africa, provide commentaries to further clarify my confusion or no confusion at all.