Eazzy Pay Case Study | Modefin

Equity Bank efforts to digitalize retail commerce operations through EazzyPay has paid off; Captures 15% of the total mobile money transfer market within the first year of its operation.

The technological advancements such as mobile and contactless payments in banking have been steadily gaining prominence. It hit high gear last year, with the pandemic forcing businesses to adapt and digitize in a hurry. Digitised solutions offer convenience, ease-of-use, and lesser disputes in transactions leading to its popularity.

Technology advancements in the banking space, specifically with regards to payments, led to the advent of different form factors such as Card Based payments, Mobile and Contactless/Proximity payments. Card-based transaction acquisition has been in vogue for a long time. However, given the convenience, ease of use, and low disputes in transactions, mobile-based and Card based contactless payments are fast gaining prominence.

The need

A digital transformation in banking may seem like a challenge, but it should be considered an opportunity.
Such a transformation is not only necessary (considering changes all around us) but will work to build a long-lasting and productive customer relationship.

Kenya has more banks per head than any other African country. The competition in the industry leads to innovations (such as the Lipa na M-Pesa), offering transformative and personalised experiences for customers.

Equity Bank Limited (EBL), Kenya is a leading bank in this region. They were keen to create a digital channel for merchants and their customers (banking with EBL). The main objective was to provide better access to financial resources and transform the way customers look at banks. They were losing a lot of business in the loan market as Lipa na M-Pesa was already quite popular (despite the high-interest rate). Further, they wanted to improve their presence in the market and compete against the popular product Lipa na M-Pesa.

Designing the right product

The software solution must not include the involvement or installation of any hardware at the merchant’s end. Without investment from their side, merchants would be more enthusiastic about adopting the technology.

It would be possible to onboard merchants and customers digitally. Modefin’s digital validator (AI-based) would perform a liveness check and a facial match to ensure the customer is genuine and the documents are valid.

Once the merchant is onboarded, a link with the designated profile is sent. After this, they would be able to accept payments being made by the bank’s customers.

The primary channel will be an STK (Sim Tool Kit) along with their own telecom branch- Equitel.

Features of Eazzypay

A back-end portal is provided to bank admin to on-board Merchants, who can then begin to accept payments from customers

The customers can make payments by

  • Scanning the Merchant QR code
  • Entering the Merchant code
  • Use Lipa na M-Pesa to make payments to merchants. This ensures that non-equity bank customers are covered as well.

Merchants can track payments and manage their account through the STK (Sim Tool Kit)

Merchant gets automated settlement/reconciliation resports.

Services that they can take advantage of

  • Registration
  • Balance Enquiry
  • Mini Statement
  • OTP services for transactions
  • Fund Transfers- Interbank, inter-account (within other equity banks) and to own accounts
  • Loans
  • Bill Payments
  • Cash and Agent Withdrawals
  • Purchase of airtime, bundle, and other payments to merchants

Features of Eazzypay

A back-end portal is provided to bank admin to on-board Merchants, who can then begin to accept payments from customers

The customers can make payments by

  • Scanning the Merchant QR code
  • Entering the Merchant code
  • Use Lipa na M-Pesa to make payments to merchants. This ensures that non-equity bank customers are covered as well.

Merchants can track payments and manage their account through the STK (Sim Tool Kit)

Merchant gets automated settlement/reconciliation resports.

Services that they can take advantage of

  • Registration
  • Balance Enquiry
  • Mini Statement
  • OTP services for transactions
  • Fund Transfers- Interbank, inter-account (within other equity banks) and to own accounts
  • Loans
  • Bill Payments
  • Cash and Agent Withdrawals
  • Purchase of airtime, bundle, and other payments to merchants

High RoI and business impact.

Equity bank was invested early in technology as it was committed to a progressive transition from a traditional style (brick and mortar branch-style) to a digital-driven model. This was perfectly aligned with the changing preferences of the banking sector customers. This commitment resulted in full-scale digitisation of the bank along with the release of the Eazzypay app. This opened online, interoperable mobile banking channels, and downloadable apps that feature cash and liquidity management products for both SMEs and corporates.

Customers found that payments made through their account to the Eazzypay merchants were cost-effective as compared to Lipa na M-Pesa payments. Since quite a few customers were already on the bank’s platform, it meant lesser charges and greater savings. A digital channel for merchant payments meant additional revenue for the banks too.

The Eazzypay product (designed by Modefin) was designed to compete against Lipa na M-Pesa. Considering this challenge, it has performed exceptionally well by adding merchants to an already expanding customer base. The mobile banking platform captured 15% of the total mobile money transfer market (both value and volume of transactions) within the first year of its operation.

Currently, there are about 60,000 merchants (and increasing) on the platform.

“Our effort to digitize retail commerce operations through enrolling retail shops to transact through EazzyPay has paid off. The number of EazzyPay transactions has grown suggesting the size of transactions are increasing and the country is accepting the risk of digital money,” said Equity Group CEO and Managing Director Dr. James Mwangi.

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