Are self-service kiosks for payments and bill payments a viable future solution for developing countries and startups?
Payments
Asked by Question Bot12/Aug/20151 answer
1 Answer
F
Faisal Khan
Answered 12/Aug/2015
Great answers and points by others, I would like to contribute the following to what has already been said.
Kiosks are a tricky play when it comes to developing countries. Most developing countries prefer that non-cash based kiosk facilities are provided (due to AML/KYC concerns). If cash kiosks are provided for, then best to use them for a KYC'd transaction only (like paying a bill, etc.), but money transfer is discouraged via kiosks.
Kiosks themselves are expensive when it comes to importing these into developing countries, as most countries have heavy customs taxes and levies on imports of machinery that would eventually be classified for financial usage. This is where local OEMs might have an edge.
In addition to this, some developed countries and developing countries regulate this business, by ensuring money transmission licensing (or its local equivalent) is present.
Depending on the nature of the transaction set, banks may not be willing to take your business for the cash you accumulate, again KYC/AML concerns come to mind.
Above all, there is intense competition from the mobile payments sector. With the ever expanding mobile wallets, today, one can literally pay bill or pay anyone using their featured phone (let alone a smart phone), so the need for a kiosk diminishes.
In addition to this, cardless and card based transactions at participating ATMs also allow bill payments in many countries. A tad bit tedious, but it works.
Ideal points for kiosks require a lot of research, understanding the population density in the area, the daily walk-by's, the likelihood of transactions that will take place and the average value of the transactions. The placements can vary from malls to factories, it all depends if there is a problem (read: need) that needs solving.
Power, connectivity, maintenance, servicing, cash management, rental, defacement threats and breakages, etc. all need to be taken into consideration. In some jurisdictions, a license may be required from the telecom operator &/or the banking operator to be able to offer such kiosk placements and services.
Research well before you dive into it.
Kiosks are a tricky play when it comes to developing countries. Most developing countries prefer that non-cash based kiosk facilities are provided (due to AML/KYC concerns). If cash kiosks are provided for, then best to use them for a KYC'd transaction only (like paying a bill, etc.), but money transfer is discouraged via kiosks.
Kiosks themselves are expensive when it comes to importing these into developing countries, as most countries have heavy customs taxes and levies on imports of machinery that would eventually be classified for financial usage. This is where local OEMs might have an edge.
In addition to this, some developed countries and developing countries regulate this business, by ensuring money transmission licensing (or its local equivalent) is present.
Depending on the nature of the transaction set, banks may not be willing to take your business for the cash you accumulate, again KYC/AML concerns come to mind.
Above all, there is intense competition from the mobile payments sector. With the ever expanding mobile wallets, today, one can literally pay bill or pay anyone using their featured phone (let alone a smart phone), so the need for a kiosk diminishes.
In addition to this, cardless and card based transactions at participating ATMs also allow bill payments in many countries. A tad bit tedious, but it works.
Ideal points for kiosks require a lot of research, understanding the population density in the area, the daily walk-by's, the likelihood of transactions that will take place and the average value of the transactions. The placements can vary from malls to factories, it all depends if there is a problem (read: need) that needs solving.
Power, connectivity, maintenance, servicing, cash management, rental, defacement threats and breakages, etc. all need to be taken into consideration. In some jurisdictions, a license may be required from the telecom operator &/or the banking operator to be able to offer such kiosk placements and services.
Research well before you dive into it.