The internet today has taken a large portion of commercial and financial transactions with the world of e-commerce and online banking.

Online Banking is becoming an important aspect of the worldwide commerce; online banking is an industry which allows people to interact with their bank accounts via the internet from virtually anywhere in the world. The electronic banking system addresses several emerging trends: customers demand for anytime-anywhere services; product time-to-market imperatives and increasingly complex back-office integration challenges. For many people, electronic banking means 24-hour access to cash through an automated teller machine (ATM) or Direct Deposit of paychecks into checking or savings accounts. But electronic banking involves many different types of transactions, rights, responsibilities and fees.

The future of web-based e-banking in developed countries appears bright but consumers and merchants in developing countries face a number of barriers to successful e-banking, including less reliable telecommunications infrastructure, less access to online payment mechanisms and relatively high costs for personal computers and internet access.

How could this affect the traditional banking industry?

Still, online banking isn’t for everyone, and the line between the two is becoming blurred as more banks ramp up their web presence to compete.

We have been hearing statements like “Cash Is Trash” recently since the mobile e-payment has been launched, do you think that cash will disappear?

Not quite. It’s tempting to forecast the demise of cash. In fact, people have been predicting the end for physical money for nearly 60 years.

And you can see the effect on global economy and the Egyptian economy as well?

Cash on delivery continues to be the most popular payment option in the region with 50% of shopper preferring this method of payment. This preference is most prevalent in Egypt where 70% of the shopping population preferring cash on delivery. Cash still dominates offline shopping however with 80% of offline shoppers preferring to pay with cash at brick and mortar locations. This trend is most prominent in Egypt where 91% of offline transactions are settled with cash. However, here comes the responsibility of e-commerce platforms like Jumia to spread awareness and trust in e-payment methods to continue to develop economies.

But do we have the basis to shift from a cash economy to a non-cash economy?

The e-tailing market in Egypt is growing fast and has the potential of reaching even the far flung markets. Two important factors that will shape this change are the security of electronic payments and the evolution of today’s consumer.Bitcoin

In Egypt, we are still far from the international standards of e-payments (regulations, interest rate, and security); so what should be done to in terms of technicalities and regulations pursue these standards?

Electronic payments despite its numerous benefits comes with its own challenges.

These challenges are: security, infrastructure, regulatory and legal issue.

Proper policies, procedures and appropriate government laws must also be put in place to ensure technologies provide maximum security.

The development of information and communication technology is a major challenge for e-payment development.

National regulatory and legal framework that aligns with regional and international agreements is crucial in creating a certain and reliable environment.

And not everything goes without a few challenges

Data theft is a very serious risk, but that is a wide internet risk all heavy users have to take. Unfortunately, as a consumer, it doesn’t come down to whether you choose to bank online.

Security, fraud, and privacy risks are still major issues with regards to e-payments; does this give cash more credibility?

History suggests that there is a safety and security feeling about cash that digital currencies can’t quite match.

Are you familiar with the bitcoin?

Bitcoin is a decentralized virtual currency, meaning neither does it exist in the physical world, nor does it have a central bank such as CBE “Central Bank of Egypt”

Bitcoin was launched in 2009 by an anonymous person – or group or people – who’s been dubbed Satoshi Nakamoto.

The Bitcoin is a system which allows you to do anonymous currency transactions and no one will come to know about the payment or about all other info related to the payment, including who sent it, who received it, etc.

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Many ask us if your company is affected by the rise in use of this type of currency and if Jumia foresee any prospects for the Bitcoin.

Jumia is not affected by Bitcoins in any of the markets it is operating in. As told before, cash on delivery continues to be the most popular payment option in the region and most of the transactions opt for cash on delivery.

Bitcoin is an innovation that boomed quickly with a big buzz. Whether or not it can overcome a few major challenges and be an official currency of growing economies – we’ll have to wait and see.

 

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