By the end of January 2011, over 2.6 million transactions were processed by the eWallet system.
The bank is poised to double the use of this service by expanding it to other African countries by June this year. Yolande van Wyk, CEO of FNB Smart Services, says the eWallet system has already processed R750 million worth of transactions since inception. This represents staggering growth of 3082% considering that at January 2010 the cumulative value of transactions processed since inception stood at a little over R23 million.
"In January last year, less than 30 000 eWallets had been created. But by January this year volumes had surged to 370 000" Van Wyk says, adding that on average R1.5 million is currently being sent daily by FNB customers to eWallets.
Van Wyk describes this growth as phenomenal and the eWallet system has consistently outperformed its competitors since its launch. According to FNB, the growth of this product has been driven by the need to bridge the gap between the banked and the unbanked for all South Africans.
Another contributing factor towards its success is the high concentration of cellular phones amongst South Africans. "As long as recipients have a cellular phone, they are able to receive money in an eWallet, thus opening the product up to most South Africans (regardless of whether they have a bank account or where they bank). Using their cellphones, eWallet recipients are able to withdraw cash from an FNB ATM, buy prepaid airtime or send money to someone else", adds van Wyk.
The FNB customers who send money to eWallets range from low to high income groups, showing broad appeal for the service. They use it to send money to family in remote areas, to give pocket money to kids or to reimburse friends for lunch.
"At FNB we drive innovation and believe it is with innovation that we will make eWallet available not only to South Africa but to the rest of the continent. We are working on changing the way Africa sees cash, by delivering an easy and safe innovative method," concludes Van Wyk.