Transfer money by cellphone to the unbanked

A new generation of banking service has been ushered in by FNB’s eWallet – a facility that enables the bank’s customers to send money to any South African resident with a cellphone, anywhere in the country, instantly.

The person receiving the money only needs a cellphone to access the eWallet. Then they can buy goods online, make withdrawals from FNB ATMs without using a bank card, buy airtime or send the money on to another cellphone.

You can withdraw or use only some of the money received and leave the rest safely in the wallet for later use.


The eWallet product is a first for South Africa, developed locally by FNB. While banks have been eager to reach new customers, especially in rural South Africa, FNB Smart Services CEO Yolande van Wyk, pictured, says not all South Africans want or need a fully fledged bank account.

“We have been working on this concept for some time now, and it combines the best of all worlds,” says Van Wyk.

“We have found that most money transfers take place from more developed urban areas like Gauteng, to friends and family living in rural areas. These recipients do not require the full functionality of a bank account – so being able to receive and withdraw money without a bank card suits them perfectly. ”

Van Wyk says safety in transfer and transactions was an obvious priority for the eWallet service.

“Many South Africans with friends or relatives in rural areas have been forced to rely on highly informal means of money transfer, like sending envelopes across the country with taxi drivers or other third parties. eWallet money transfer is accurate and instantaneous.

“Each eWallet account has a five-digit PIN and the maximum balance that can be stored in the eWallet at any one time is R1000. All of these features contribute to a very safe experience.”

The eWallet cellphone interface is easy to use. “Any working handset can use this facility. It requires no downloads, installations or extra kit. So far we have seen very high activity rates of over 90% of the eWallets created. This means the product has proved to be a major success and suits the daily lives of our customers. ”

Since the eWallet was launched in November last year, the facility has seen a 240% growth in users and a record transaction rate of over R1m per day.

“O ur customers will one day be able to walk up to a till or paypoint and make all transactions from their cellphones, without having to handle actual cash. We expect this kind of facility to fill the gaps left by traditional banking products in less developed parts of the continent. ”

As an introductory special offer, all eWallet transactions to date have been free and will remain so until mid- July, from which point an easy-to-understand and highly competitive pricing schedule will come into effect. There will be a flat fee per transfer (from FNB account holder to recipient) of R9, and the eWallet will be charged a flat fee of R2 for online, cellphone-to-cellphone and airtime transactions (on the recipient’s side).

Recipients do not pay for ATM withdrawals. “If someone is sent R100, they must be able to draw out the full R100,” says Van Wyk. “Also, checks on information, such as a balance inquiry, will remain completely free.”