In a country where 10.5 million people receive their SASSA grants via a cashless system and 70% of the population have accounts at financial institutions, is cash here to stay, asks CHAD FICHARDT, independent tech and finance communications specialist.
The way the world transacts is in transition. Physical cash and cards are morphing into a hybrid of mobile, digital and perhaps even crypto. This brings to the fore exciting commercial opportunity and challenge. Mostly, it offers the chance of financial inclusion.
At the recent Cashless Payments Summit, experts attempted to decipher where this transition is headed and what it means for South Africans.
The idea of going cashless, or replacing cash with digital money – largely enabled through seamless payment on our mobile devices – is being propelled into reality by governments and corporations who see the benefits.
In developed markets mobile payments are leapfrogging card and are well on their way to replacing cash. Singapore, the Netherlands, Sweden and France see almost 60% cashless transactions, according to figures from Mastercard.
The Central Bank of Nigeria is starting to drive ‘cashless’ because it sees the economic benefit. “Going cashless inevitably means you know more about your customers and trade starts to increase. Additionally, where relevant, the more you know about your customer the more you are willing to lend money, which, when done responsibly, leads to further capital available for them to invest and for the economy to grow,” says Anton Gaylard from Crossfin, a local technology investment company.
Cashless transactions are traceable and the amount of information available relating to a particular transaction gives rise to more opportunies for data management and personalisation. In the US, retailers are seeing a 10% uptake in sales from knowing your customer better.
According to Karen Nadasen, PayU South Africa CEO, getting cashless right will enable other trends, particularly in and around eCommerce. “eCommerce is often a barometer for how payment technology is progressing. It gives you an idea of where trust levels are at. As we see eCommerce steadily grow and give rise to better data collection and usage, we see richer opportunities to solve real problems like financial exclusion,” says Nadasen.
However, cash still prevails at the low end of the market. Commenting on the ‘stickiness’ of physical cash, the Centre for Financial Regulation and Inclusion’s Barry Cooper, observes that encashment, or the ability to access cash from other forms of money, will drive digital money uptake.
“You actually need more cash to take the step into digital. The current digital ecosystem is concentrated around economically active areas only and cash reticulation (the development of an accessible network) remains limited. Whereas cash is perceived to be free and universal. This leads to a disproportionate gravity towards the cash economy,” says Cooper.
It is evident that access to platforms, improved convenience and trust hold the key. From a technology provider perspective it’s all about driving the costs down. Interestingly, Cooper points out that the informal digital environment is sophisticated, more trusted than banks in informal markets and highly effective. Increasing trust in digital channels relies heavily on the reliability of the technology and the points of interaction with the real economy. This is something the informal market is getting right, according to Cooper.
At the other end of the spectrum, cashless technology is speeding things up at the point of sale for retailers. Speed through the checkout affects the bottom line directly, not to mention the added benefit of less queuing time and happier customers.
NFC technology, which allows you to tap your card for payment, has halved the time it takes to complete a traditional card payment in retail and reduced by a third the time it takes to do a traditional cash payment.
With mobile payments increasing at 23% year on year in South Africa, all eyes will be on eCommerce. “There is so much progress being made in the fintech and, to a lesser degree, eCommerce space at the moment that all point to a further penetration into cashless,” adds Nadasen. “Payment technology is going to have to move further in the background, or frictionless for mass uptake of cashless to be realised.”
It is peculiar that in a country where 10.5 million people receive their SASSA grants via a cashless system and roughly 70% of the population have accounts at financial institutions, that cash appears to be here to stay, for now.
Legion gets a pro makeover
Lenovo’s latest Legion gaming laptop, the Y530, pulls out all the stops to deliver a sleek looking computer at a lower price point, writes BRYAN TURNER
Gaming laptops have become synonymous with thick bodies, loud fans, and rainbow lights. Lenovo’s latest gaming laptop is here to change that.
The unit we reviewed housed an Intel Core i7-8750H, with an Nvidia GeForce GTX 1060 GPU. It featured dual storage, one bay fitted with a Samsung 256GB NVMe SSD and the other with a 1TB HDD.
The latest addition to the Legion lineup has become far more professional-looking, compared to the previous generation Y520. This trend is becoming more prevalent in the gaming laptop market and appeals to those who want to use a single device for work and play. Instead of sporting flashy colours, Lenovo has opted for an all-black computer body and a monochromatic, white light scheme.
The laptop features an all-metal body with sharp edges and comes in at just under 24mm thick. Lenovo opted to make the Y530’s screen lid a little shorter than the bottom half of the laptop, which allowed for more goodies to be packed in the unit while still keeping it thin. The lid of the laptop features Legion branding that’s subtly engraved in the metal and aligned to the side. It also features a white light in the O of Legion that glows when the computer is in use.
The extra bit of the laptop body facilitates better cooling. Lenovo has upgraded its Legion fan system from the previous generation. For passive cooling, a type of cooling that relies on the body’s build instead of the fans, it handles regular office use without starting up the fans. A gaming laptop with good passive cooling is rare to find and Lenovo has shown that it can be achieved with a good build.
The internal fans start when gaming, as one would expect. They are about as loud as other gaming laptops, but this won’t be a problem for gamers who use headsets.
Click here to read about the screen quality, and how it performs in-game.
Serious about security? Time to talk ISO 20000
By EDWARD CARBUTT, executive director at Marval Africa
The looming Protection of Personal Information (PoPI) Act in South Africa and the introduction of the General Data Protection Regulation (GDPR) in the European Union (EU) have brought information security to the fore for many organisations. This in addition to the ISO 27001 standard that needs to be adhered to in order to assist the protection of information has caused organisations to scramble and ensure their information security measures are in line with regulatory requirements.
However, few businesses know or realise that if they are already ISO 20000 certified and follow Information Technology Infrastructure Library’s (ITIL) best practices they are effectively positioning themselves with other regulatory standards such as ISO 27001. In doing so, organisations are able to decrease the effort and time taken to adhere to the policies of this security standard.
ISO 20000, ITSM and ITIL – Where does ISO 27001 fit in?
ISO 20000 is the international standard for IT service management (ITSM) and reflects a business’s ability to adhere to best practice guidelines contained within the ITIL frameworks.
ISO 20000 is process-based, it tackles many of the same topics as ISO 27001, such as incident management, problem management, change control and risk management. It’s therefore clear that if security forms part of ITSM’s outcomes, it should already be taken care of… So, why aren’t more businesses looking towards ISO 20000 to assist them in becoming ISO 27001 compliant?
The link to information security compliance
Information security management is a process that runs across the ITIL service life cycle interacting with all other processes in the framework. It is one of the key aspects of the ‘warranty of the service’, managed within the Service Level Agreement (SLA). The focus is ensuring that the quality of services produces the desired business value.
So, how are these standards different?
Even though ISO 20000 and ISO 27001 have many similarities and elements in common, there are still many differences. Organisations should take cognisance that ISO 20000 considers risk as one of the building elements of ITSM, but the standard is still service-based. Conversely, ISO 27001 is completely risk management-based and has risk management at its foundation whereas ISO 20000 encompasses much more
Why ISO 20000?
Organisations should ask themselves how they will derive value from ISO 20000. In Short, the ISO 20000 certification gives ITIL ‘teeth’. ITIL is not prescriptive, it is difficult to maintain momentum without adequate governance controls, however – ISO 20000 is. ITIL does not insist on continual service improvement – ISO 20000 does. In addition, ITIL does not insist on evidence to prove quality and progress – ISO 20000 does. ITIL is not being demanded by business – governance controls, auditability & agility are. This certification verifies an organisation’s ability to deliver ITSM within ITIL standards.
Ensuring ISO 20000 compliance provides peace of mind and shortens the journey to achieving other certifications, such as ISO 27001 compliance.