It is no secret that the Fintech landscape in Zambia has seen the rise of digital wallet offerings from many providers. Many entities have been quick to release products on the market that were developed and have been working in other African countries. However, many of these companies that have launch e-wallets have had to play second mover advantage to the incumbent telcos MTN and Airtel who whilst already dominating the infrastructure that most wallets have to run on they have also enjoy an easier path to market. So the question now arises, what makes a great digital wallet?
Probase CEO and Chair of Payments Association of Zambia Roy Muyelu gave his opening speech at the ICT & Fintech Expo 2022 this morning at Pamodzi Hotel which opened proceedings at this inaugural ICT & Fintech feastival. pic.twitter.com/Crr66HlmZR
— FinInsight Zambia (@MWE15) September 22, 2022
According to personal finance author Julia Kegan, “a digital wallet (or electronic wallet) is a financial transaction application that runs on mobile devices. It securely stores your payment information and passwords. These applications allow you to pay when you’re shopping using your device so that you don’t need to carry your cards around. You enter and store your credit card, debit card, or bank account information and can then use your device to pay for purchases”.
The interesting part of digital wallets is that there seems to be no limits to the number of things they can store. They can store everything from Gift cards, Membership cards, Loyalty cards, Coupons, Event Tickets, Plane and transit tickets, Hotel reservations, Driver’s license, Identification cards, and Car keys. This inherent ability of being the every store card makes design of the product offering from providers very interesting as they have a ‘laundry list’ of options of what to provide their customers.
The final digital card offering that goes to market depends largely on the belief system of the Fintech Management Team involved. It depends on the level and amount of research that the company has done on its consumers in order to design a wallet that is fit for purpose. Furthermore, the choice of a wallet design should also give the customer freedom of use without restrictions. A form of digital liberation for the customer which has been the ethos of why Fintech’s now exist.
Another aspect is an understanding of the data and technical infrastructure the fintech possess. Some fintechs for example have opted to build applications from the ground up. Others have taken time to assess the data that they already possess and build digital wallets around that ecosystem. Whilst all roads to deliver that digital wallet have the same intent and purpose, what really matters is value being created for the customer that ultimately leads to it’s adoption. That and a large marketing budget 😊.
CTO @StanbicBankZM and SAMPAY CEO sit down with @CostaMwansaDTV at @TheQuorumClub for a fintech discussion biannual Power Lunch pic.twitter.com/AKIMsCuyvI
— FinInsight Zambia (@MWE15) September 16, 2022