Sentencias del Tribunal Supremo relativas a delitos de resultado más grave que el querido.grave que el querido.

M-Pesa, Airtel Money, and Mpamba are all issued based on deposits in a pool account of a bank. There is no requirement for individual customs who hold the m-money accounts to have bank accounts. As the telecommunications network is the carrier of the service, this model is called a telco-led.259 _{This is}

the main factor distinguishing the telco-led model of m-money from the bank- led model where one links their mobile phone to their pre-existing account. For the bank-led model, the mobile phone works as an extension of the bank account, and in many ways, bears similarities to mobile banking offered by banks. Examples of bank-led m-money services are WIZZIT and MTN Mobile Money, both offered in South Africa, discussed below.

The end of apartheid in South Africa saw a positive movement in the number of the banked from 29% to 39% in by 1994.260 _{At the time the mobile money}

revolution began in earnest, more than half of the population in South Africa was still unbanked.261 _{However, despite South Africa having many people}

unbanked, the conditions seeming right and having arguably one of the biggest slums in Africa, Khayelitsha,262 _{the service seems not to have picked up as}

expected. WIZZIT was launched in 2005 with links to Bank of Athens SA.263

The bank provides account holders with access to other e-payments systems including use of ATM machines.264 _{The opening of WIZZIT accounts was done}

258 _ibid.

259 _{Maurer (2011).}

260 _{Alan Gibson (2006) Developing financial services markets for the poor: FinMark in South} Africa (Making Markets Work for the Poor: Case Studies Series Schweizerische

Eidgenossenschaft, Bern) p5 <http://www.value-

chains.org/dyn/bds/docs/614/M4P_case_study_FinMark_april2007.pdf>. 19 March 2015. 261 _{Ibid p11.}

262 _{Tovrov (2011).} 263 _{Porteous (2006) p27.}

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remotely through agents called WIZZkids.265 _{WIZZIT targeted 300,000}

accounts in the medium term, 266 _{but it only attracted 250,000 in more than}

four years of operation.267 _{Apart from using the mobile banking platform, the}

service also offers a debit card by MasterCard. 268

WIZZIT adopted a similar but somewhat modified slogan to that of M-Pesa: ‘Send money home to family and friends.’269 _{Although it is linked to a bank,}

WIZZIT is a virtual branchless banking platform and does not require customers to physically visit bank branches.270 _{WIZZIT has now been}

deployed in nine countries271 _{and boasts of over six million customers through}

partner banks.272 _{However, details of the number of customers that it has in}

South Africa could not be obtained. It is also unclear whether these six million customers were recruited by WIZZIT or have become customers by its association with partner banks. WIZZIT is built to operate across networks and not linked to any one operator.273

MTN (Mobile) Money started as a venture between the telecommunications company MTN and Standard Bank in 2005.274 _{Customers are required to}

provide biometric identifiers when opening accounts through an interactive process, which takes place remotely.275 _{In 2014 MTN launched MTN Mobile}

265 _ibid.

266 _{Rabecca Harrison (2005) 'Cell phones plug Africa's poor into mobile banking’ Reuters} South Africa (1 November 2005) <https://www.mail-archive.com/telecom-

[email protected]/msg00327.html>. 21 Janaury 2017. 267 _{Mas and Morawczynski (2009), p77.}

268 _{WIZZIT (2016) 'History’ (WIZZIT) <http://www.wizzit.co.za/?q=node/197>. 14 January} 2016.

269 _{WIZZIT (2016b) 'Cellphone Banking’ (WIZZIT) <http://www.wizzit.co.za/?q=node/68>. 14} January 2016.

270 _{WIZZIT (2016c) 'Who We Are’ (WIZZIT International) <http://wizzit-} int.com.dedi89.cpt1.host-h.net/who-we-are/>. 14 January 2016.

271 _{South Africa, Zambia, Tanzania, Romania, Rwanda, Namibia, Botswana, Honduras, and} Nigeria.

272 _{WIZZIT (2016c). Anon (2014c) ‘WIZZIT CEO: Reflections & Predictionns for The Future} of Mobile Money’ (Mondato Insight, Mondato,14 January 2016)

<http://mondato.com/blog/wizzit-founder/>. 14 January 2016. 273 _{WIZZIT (2016c).}

274 _{An entity called MTN Mobile Money South Africa was formed- Cisco (2012) MTN} MobileMoney Service (Mobile Connected Life Experiences, Cisco)

<http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns1058/Cisc o_MTN_CS.pdf>. 19 March 2015.

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Money and its catch-phrase is clear in what type of service it is offering: “Mobile money is a safe, secure and affordable way to do your banking, and is available to customers on all cellphone network” (emphasis supplied).276 _MTN

says, customers are given Mobile Money Visa Cards, which they can use for “everyday purchases at any point-of-sale machine.”277 _{The cards can also be}

used to withdraw money from any ATM.278 _{Customers, however, need to}

purchase the Visa Card separately.279

Both WIZZIT and MTN Mobile Money are premised on the notion of branchless banking. In Sub-Saharan Africa, one of the greatest challenges faced by banks is the establishment of branches in rural and far-flung areas. In 2007, Brian Richardson, founder of WIZZIT said:

[I]f you talk to any bank anywhere in the world, banking equals branches, and as long as you have that mindset, it becomes expensive to bring affordable banking to the mass market. It is estimated in South African that about 30 million people have a cellphone; about 11 million people have a bank account. So, the option is to utilise technology. The challenge we had, was to have technology that worked on the lowest common denominator, that could work on any phone, any SIM and across all the networks.280

Looking at the bank-led and telco-led models, what comes out clearly is that the two models function on different rails. Since WIZZIT and MTN Money are bank-led, it is only natural that they are subjected to the more stringent prudential regulatory framework for banks. It is submitted this is what may have led to the differences in uptake. The fact that WIZZIT and MTN Money are regarded as banking services may be a hindrance. There is a good reason

276 _{MTN (2015) 'MTN Mobile Money’ (Mobile Telephone Network, South Africa)}

<https://www.mtn.co.za/everyday_services/useful_extras/Banking/Pages/mobile_banking .aspx>. 19 March 2015.

277 _{MTN (2016) 'Mobile Money’ (Mobile Telephone Network, South Africa)}

<https://www.mtn.co.za/everyday_services/useful_extras/Banking/Pages/mobile_banking .aspx>. 20 January 2016.

278 _Ibid. 279 _Ibid.

280 _{Anon 'WIZZIT: Banking the Unbanked in South Africa' (World Bank, 2007) (Audio Visual)} <https://www.youtube.com/watch?v=2SKhCYoF0Lg>. 1 March 2017.

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why the telco-led models are at pains to emphasise that they are not banking services. Bank-led models by their nature are within the clutches of the banking regulator. This leaves them little or no room for innovative manoeuvre unless sanctioned by the regulator, a process that may be laborious. Heeks argues that “tighter regulation” is one of the factors that “has held back the expansion of mobile money services in South Africa.”281 _{As noted earlier, M-} Pesa, which was introduced by Vodacom (South Africa), was withdrawn for failure to gain traction.282 _{The up-take of m-money in South Africa has}

generally stalled over the years.283

Table 12: Comparisons of the Mobile Money Services.284

281 _{Heeks (2012).}

282 _{Chutel (2016).}

283 _{Rabelani Dagada (2015) ‘Mobile money stalls in SA’ ITWeb in Banking, 10 February} 2015 <http://www.itweb.co.za/index.php?option=com_content&view=article&id=141012>. 19 March 2015.

284 _{This figure has been adapted from Proteus Table 3 and table 4, Porteous (2006) p27 and} 29.

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4.10. Conclusion

In looking at how m-money operates, this chapter undertook a journey of how the telephone developed into the modern day mobile phone and how this has enabled the development of m-money. The analysis of the technical aspects of m-money is fundamental to appreciate the unique regulatory issues that m- money poses. By looking at the Kenyan M-Pesa, the chapter looked at the factors that contributed to its success. A comparison was made of attempts to replicate it in Tanzania and why it failed to achieve the same results. A comparative analysis was also done on the telco-led and bank-led models of m-money. It was found that the bank-led models have not fared well compared to the telco-led model, and one possible reason advanced is a regulatory restriction of the former. Now, because of the inclusiveness of its risk-based KYC requirements, it can be concluded that the telco-led is the most ideal in achieving FI goals.

The main issues that arise in this chapter are how a service like M-Pesa can be successfully replicated and what is the best way of regulating it? It was suggested that future replications of M-Pesa are more likely to follow the Tanzanian model: slow but steady. For Malaŵi, this is a valuable lesson for Airtel Money and Mpamba. It is imperative therefore, that the model is not simply replicated without factoring in some of the unique and distinguishing factors present in Malaŵi. In fact, it begs the question whether the research was first done or the service was introduced in a niche market and has had to be adapted along the way. As has been highlighted, the economic situation in Kenya is very different from that of Malaŵi. For now, both Airtel Money and

Mpamba seem to be gaining traction. The basic m-money ecosystem infrastructure has been laid down and only time will tell how the services grow.

Aker and Mbiti (2010) p20 say despite M-Pesa being touted as targeting the low income and poor and ‘banking the unbanked’, M-Pesa ‘users are wealthier, better educated, urban and already banked.’

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5. PAYMENT SYSTEMS AND MOBILE MONEY