Commuters can pay with smartcard in Jakarta

Electronic gates installed at Corridor 6

By Raphael Michilis

Jakarta’s bus rapid transit system Transjakarta will start phasing out paper tickets in its buses by the end of May and replace these with electronic smartcards that will be issued by DKI Bank.

The new e-payment system will be, initially, available in the Corridor 6, the route with the smallest volume of commuters using a bus in Jakarta.

The prepaid card will be called JakCard and will be extended to other commuter routes August, provided the pilot in Corridor 6 is successful.

“If the implementation is successful, we will integrate the JakCard as an e-payment for theJakarta commuter-line system in May next year,” Martono, Bank DKI director, said.

DKI Bank has agreed to provide all equipment needed for the e-payment system and will be responsible for its maintenance for 10 years.

The travel cards will be offered in two prepaid versions: one for daily commuters, permitting maximum balance of IDR1m (USD107), and the one for a one-way e-card that can be purchased at bus stops.

“The price of a trip will be deducted from the balance of a prepaid card every time it is swiped. Such cards will be available at bus stops and minimarkets,” said Muhammad Akbar, Transjakarta Management Authority (BLU) chief.

“Every day, Corridor 6 serves around 30,000 commuters, as compared to Corridor 1, which serves around 70,000 people. We have completed the installation of sensor machines at all bus stops on Corridor 6,” said Akbar.

The electronic system, expected to simplify commuting in Jakarta buses and reduce queues, had been introduced in Jakarta buses before, but was abandoned in 2009 after a lack of funding for maintenance from the Jakarta administration.

US: 24/7 Cards launches prepaid+remit solution to Latin American immigrants

By Raphael Michilis
18 May 2012

24/7 Cards has launched a prepaid card combining debit and overseas remittance services aimed to Latin American immigrants in the US.

The card, dubbed The Smarter Way to Bank and Send Money, permits its holders to send money abroad 24 hours a day, 7 days a week, make online payments and set up direct debits.

"We are proud to empower Hispanic-Americans and other immigrants with a safer, more cost-effective way to send money to their loved ones in Mexico, Central and South America, the Caribbean, and other countries, including China, India and the Philippines," said Lance Rosenzweig, 24/7 Card CEO.

The card can be loaded through direct deposit, bank transfer or at 24/7 partners, such as Walmart, 7eleven and Western Union.

It charges monthly fees of USD 9.95 for maintainance, up to USD 7.95 plus for remittance and another USD 2 for ATM withdrawals.

A pay-as-you-go version excludes monthly fees, but adds an extra USD 1 for Visa transaction.

The recipient can receive money at 24/7 remittance partners, deposited directly into a bank account, or even hand delivered to their home, in areas where home delivery is available.

24/7 Cards supports money transfer to a total of 23 countries across the globe, including Poland, Hong Kong and Russia.

About 95% of the UK population have never used a contactless card

By Raphael Michilis
10 May 2012
Only 5% of British consumers have used a contactless card, although 14% of the population own a card fitted with the contactless technology, revealed a recent study by international market researcher Mintel.

While around 8% of interviewees said they would immediately use contactless payments if they could, the research says consumers are not happy in being issued a contactless card without their request.

Mintel found out that 62% of the contactless card holders in the UK think it is a “more convenient” method of payment, while 28% were indifferent and 9% disagreed.

Mintel surveyed 2,000 people in the UK, and estimated that 9m British consumers are aware of the contactless capability on their card, while 3.8m “aren’t sure” they have one, said a company’s spokesperson.

“Consumers are still wary of contactless card payments, and compulsory upgrades risk further undermining consumers' goodwill towards the banks. There is anecdotal evidence of disgruntled customers closing accounts rather than have to carry a contactless card. If they only realise that they have been issued with this card months after the event, the reaction will be even less favourable,” said Toby Clark, head of UK Financial Services at Mintel.

Security is a big concern among the respondents, with 64% having said they worry about the use of a mobile instead of a payment card, and 58% being apprehensive about contactless cards.

“For those who have been issued with a card, though, it’s not security that’s preventing people from using contactless cards. Instead, it’s the limited acceptance and a lack of a compelling reason to switch from chip and PIN,” added Clarck.

The research in numbers:


43% of those using contactless cards had used the feature just a few before the Mintel.

62% of smartphone users and 71% of tablet owners would consider using contactless payment technology.

72% of consumers think think contactless cards should only be issued on request.

Pagseguro, Nokia bring NFC payments in Brazil

By Raphael Michilis
20 April 2012
Brazil’s first commercial NFC mobile payment application will commence in May.

The electronic wallet has been developed by the Nokia Institute of Technology (INdT) in Brazil, and will be available on Nokia’s C7, N9 and 701 smartphones, the Finnish company told.

The solution will be offered in partnership with Pagseguro, a payments company that belongs to UOL, one of Brazil’s largest internet service providers. 

The app enables both retail payments - at bars, restaurants and stores – as well as proximity-based money transfer between users.

Instead of a POS, the Nokia-Pagseguro service requires both merchant and consumer to have a handset with the same application installed.

“The money will be withdrawn automatically from a credit card account, a PayPal account or from any of the other supported payment types”, said Nokia.

Mobile commerce specialist David Eads, founder of Mobile Strategy Partners LLC, is optimistic about the future of m-payments in Brazil and complimented the Nokia initiative in the country. 

“The PagSeguro pilot is interesting because it ties P2P technology to the leading payment products in Brazil. This enables broad payment acceptance from anyone with the application. Unlike other pilots, it also removes the complication of merchant POS hardware,” says Eads. 

“Closed networks like these with economic incentives have a history of succeeding in various emerging markets. For example, BlackBerry Instant Messenger (BBM) thrives in Venezuela because it avoids text messaging fees. Usage exploded because of the network effect once it reached critical mass,” he points out.

He says the economic boom that the Latin American markets are experiencing provides a rich ground for the mobile payments market to grow.

He estimates that there are between 30-40% of consumers across Latin America who are underserved by banks – and this is where mobile money initiatives can generate revenues by serving this segment, he says.

Security

Pagseguro says that rather than being completely automated, the Nokia app will always request the user to enter a passcode before each individual transaction.

“So, in case the handset is lost or stolen, nobody will be able to make payments in the user’s name,” the company explains on its website.

“The recipient types in the amount they are to collect and taps their phone against that of the sender. The amount is shown on the sender’s screen and the transaction can be completed, when both parties agree”, Nokia says.

According to Pagseguro, the extension of the service to other brands will depend on phone makers adapting their handsets to the NFC technology. Nokia sells three NFC enabled models in Brazil: N9, 701 and C7.

Regulation

“The Central Bank of Brazil (BCB) and the Brazilian Communications Ministry are discussing the regulatory aspects of financial inclusion and the security requirements mobile payments in the country,” Aldo Mendes, head of monetary policy for BCB said during Cards 2012 in Sao Paulo in mid-April.

“Mobile ppayment is a global trend with potential to bring sensible benefits to society, with reduction in costs and price, better convenience to users, and improvement of the service standards through the increase of competition.”

“The costs to bring people into the financial system through mobile payments are much lower than expanding the number of bank branches and other solutions that need physical investment in infrastructure, people and other technologies,” Mendes said.

An official outline for the Brazilian mobile payments regulation might be announced in about 90 days.

The Brazilian mobile payments regulation will also guarantee the universality of the service, imposing rules that prevent barriers to new entries, according to Mendes.

Banks and mobile operators will be free to enter the market. Business models will have to permit interoperability “to allow different platforms to communicate amongst each other”, so that different models do not represent a barrier to business,” explained Mendes.

He added that the coming regulation will also ensure:

• Adaptability, so that “new technologies allow the current payment modalities to co-exist with m-payments”;
  
• That contracts and technologies for m-payments in Latin America’s largest country will have the flexibility to allow users to migrate to different operators and handset makers;
  
• The prevention of money laundering and protection of consumers’ rights.

MC Systems and Diebold launch ATMs said to recycle cash and refuse counterfeit

By Raphael Michilis 

18 May 2012

Jamaican software developer Management Control Systems (MCS) partnered with American ATM manufacturer Diebold Incorporated to launch a telling machine they claim recycles cash and refuses forged notes.

The recycling machine, that also accepts deposit of cash notes, was first installed Montego Bay in March. Another one was recently placed at the JNBS's Half-Way-Tree branch in the Corporate Area.

"In addition to the convenience of being able to withdraw cash at any time, (…) the machines will accept the notes directly, instead of notes in an envelope. And will count and request verification of the total lodgement, explained Dianne Smith-Sears, general manager of MCS.

The new machines speed up money availability, by updating the account balance immediately after the deposit, according to Smith-Sears. 

"I should also add, that the ATM will recognise counterfeit notes," she warned.

Not giving much detail, the MCS manager told the Jamaican newspaper, The Gleaner, that the counterfeit recognition technology is "built in" the ATMs and that they are recyclers because "reissue" the cash deposited into them.

"We believe that this technology will significantly cut the time spent in lines at financial institutions," commented Smith-Sears. 

She also said MCS will introduce “other aspects of deposit automation to its clients in Jamaica and the rest of the Caribbean”, citing the company also have introduced other commercial applications, innovative for the Caribbean, such as: the payroll packages Power Pay & BizPay; electronic top-up for prepaid mobile phones and an 'award-winning' online remittance system.

GRGBanking's ATM to issue gift cards

By Raphael Michilis

15 May 2012

Chinese ATM manufacturer GRGBanking has announced that its equipments will now issue debit and gift cards on demand.

The gift card issuing ATM “will be available in the market soon,” said Kevin Luo, director of business development at GRGBanking to SelfServiceWorld.com, not disclosing further details.

The ATM’s will be able to write out magnetic stripe or chipped cards, and roughly any type of gift cards, said Luo.

The machines will use a module fitted with an independent card box that can dispense standard-sized cards of any type.

The self-service solution will restructure the card-issuing process, maximise ATM utilisation efficiency, and extend traditional service channels outside the branch, said Luo to SSW.

He added that "it can also save cost — including human resource and time resources — improve customer satisfaction.”

Sentient Group raises USD 1.3bn and a slice of the funding can go to the Amazon

Hermasa Port, Itacoatiara - Amazon Basin in Brazil

by Raphael Michilis

The Sentient Group, a venture company based in the Cayman Islands, hinted it might fortify its investments in the Amazon basin near Manaus, Brazil.

The capital would be a slice from the USD 1.3bn the company has recently raised in its fourth private equity funding.

“The Fund’s objective is to invest in mine development opportunities globally. As the Fund’s mandate is global, we will look at opportunities in Brazil alongside of any other jurisdiction,” Nicholas Mead, Sentient Partner for Investors Relations, told Money World.

Since 2009, Sentient invests in the private company Brazil Potash Corporation (PBC), who is the chief holder of mineral rights of a major potash district, 400km long.

Sentient did not confirm it already has any plans in place for the potash exploration in the Brazilian Amazon. However, “Brazil Potash Corp. expects to develop its extensive property in the State of Amazonas, Brazil, into one of the world’s largest strategic, scalable and reliable sources of potash,” says the company website.

The potash is mainly used in the production of potassium based fertilizers. The potash deposits explored by PBC are located near major markets and on established shipping routes and ports, that make the area more attractive for the Sentient investments.

In its investment portfolio, Sentient lists iron ore mining Ferrous Resources, also Brazilian, as well as companies from Australia, China, and the neighbour Argentina.