Launching this morning, MTN and Pick n Pay have teamed up to give South Africa an all new mobile money banking system.

Called Tyme Capital, the service is pretty much the same as what is on offer in Kenya – something called M-Pesa – but differs from a more traditional “Internet wallet” as it allows users to transact in almost exactly the same way as one would with a normal bank account.

Tyme Capital will allow mobile phone users to set up an account directly from their phones, allow them to send money to any other South African with a mobile phone, as well as carry out their cash deposits and withdrawals at Pick n Pay’s chain of 775 retail outlets and its Boxer Superstores.

According to Business Day, who says news the new venture was briefly leaked last week when the Tyme Capital website was live for a little while:

M-Pesa, provided by Kenyan operator Safaricom, has spearheaded the shift to mobile money, and about 80% of such transactions globally now occur in East Africa. Much of its success depends on the use of so-called “human ATM’s”, or a network of registered vendors that cash money in and out of the system.

M-Pesa was also boosted by lenient regulations that enabled Safaricom, a subsidiary of Vodacom’s 65% shareholder Vodafone, to deploy it without facing the same policy hurdles as traditional banks.

In South Africa, it is understood that requirements set by the Regulation of Interception of Communications and Provision of Communication-Related Information Act have been overcome because the Tyme account will be for a maximum of R25 000, with a daily transaction limit of R1 000.

Users will create their accounts directly on the mobile phones, and Pick n Pay will handle all the cash.

[Source: BDLive]