Merchant onboarding is getting into business relations with secure payment processors or payment service providers (PSPS). This is because there is always a risk of fraud whenever financial services are utilized. Colonies must verify merchants’ details and documents for a secure and streamlined payment processing system. Secure payment method is the primary need of this era to map payment breaches, fraud, and terrorist funding. Companies that do not undergo the merchant onboarding process are vulnerable to criminal activities.

Payment service providers (PSPs) obtain relevant information from buyers to thoroughly assess and manage risk. Maintaining a balance between speed and carefulness is necessary, which can be challenging due to criminal activities. Therefore, there is a need for significant measures to manage merchants’ risk. Without significant measures, businesses may be categorized as high-risk.

Need for enhanced security measures

In merchant onboarding, payment companies set up businesses for streamlined payment systems for secure remote onboarding. Without a secure onboarding process, companies cannot process secure transactions and may undergo breaches and fraud attacks. A poor onboarding process may result in delayed and failed transactions, leading to increased financial losses for organizations. Nowadays, criminals are using technological measures to generate fake IDs and other documents t to bypass securities. It results in various complications for corporations. There is a need for secure processes for onboarding and payment transfers. Hence, merchant onboarding is necessary compliance to maintain streamlined working within the organizations.

Merchant onboarding significantly impacts businesses by influencing customer acquisition, revenue generation, and operational efficiency. A streamlined process accelerates merchant activation, enhancing customer satisfaction and loyalty. A lengthy or complex onboarding can hinder potential merchants, leading to lost revenue and a negative business reputation. Furthermore, effective onboarding mitigates risks like fraud and chargebacks, safeguarding the financial health of a business.

See also: E-IDV: Transforming fintech security in today’s digital age

The process of merchant onboarding

In the very initial step of the merchant onboarding process, relevant corporations such as PSPs collect essential documents from merchants to obtain the required information. It mainly includes all the important details about merchants, such as physical location and IDs of authorities. Automated checks of artificial intelligence verify all the details and identify risk potential for enhanced security and streamlined working of corporations. A quick review of this data saves time and enables financial institutes to ensure the legitimacy of the application.

After risk identification through a thorough checking process, due diligence comes into contact. This step ensures accurate management of all the identified risks. Due diligence processes ensure the secure working of corporations, verify all the details for irks elimination, and manage red flags according to a simplified and enhanced due diligence process.

Payment service providers verify the merchant’s ultimate beneficial owners (UBOs) during merchant onboarding. Identification of the UBO is crucial for the PSP to comply with the global AML/CFT regulations. Unveiling the complete ownership of the company’s structure and cross-screening it against the legal databases confirms the legitimacy of the business.

After completing expanded due diligence on merchants, PSP conducts risk evaluations based on the results. It helps decision-makers make informed decisions by tracking their risk levels. Payment service providers can make judgments based on risk levels that range from extremely low to very high. Risk assessment helps them determine which measures to take before onboarding a specific merchant.

Also read:

• • Future of digital payments and fintech innovations
  • How to avoid double charging during online payments
  • The role of mobile payments in financial inclusion: Uganda’s path to economic empowerment

In the final step, PSPs monitor how the merchants operate, depending on the level of their risk. In a case where the merchant risk is high, payment service providers analyze the backside of the business to confirm it is legal and not financially exploiting the system. Merchant onboarding also includes verifying companies against adverse media to ensure that merchants have been highlighted in the past for any scams.

Merchant onboarding is a critical step in engaging new merchants into payment platforms and financial services, guaranteeing compliance and mitigating risks. Businesses can simplify the onboarding process, decrease expenses, and improve accuracy by implementing sophisticated technology and best practices like automation, clear communication, and continuous monitoring. This not only allows merchants to start operations quickly, but it also increases their pleasure and success. Keeping up with regulatory changes and using scalable solutions will help organizations stay competitive and provide better service to their customers.

The post Merchant Onboarding: A Necessity for Secure Funds Transfer appeared first on PC Tech Magazine.

Like any other digital wallet, Mukuru is designed to address the growing demand for a convenient, secure, and efficient way to manage funds and make money transfers. It enables customers to seamlessly receive and send funds locally and internationally, and store, save, and earn interest on funds.

As mobile digital wallets gain popularity across Africa, they are proving to be a critical financial tool(s) for underserved and unbanked communities, offering a safe and effective means of accessing financial services. In Malawi, Mukuru enables an alternative means of accessing formal banking services in rural and urban areas.

The Reserve Bank of Malawi’s National Payment Systems report for the period ended December 2022 showed a 14.1% increase in mobile money subscribers, which stands at 12.2 million, up from 10.7 million in 2021. “It was this massive demand that led to Mukuru launching the wallet in the country,” said Pride Chiwaya, Malawi Country Manager at Mukuru.

“Mukuru is committed to driving financial inclusion, and this wallet, in response to the growing demand for money transfers, builds on the trust we have established through our growing orange booth and branch network,” Chiwaya further stated in a press statement. “In addition to this, we are becoming a preferred partner for businesses and organizations in Malawi that are increasingly seeking innovative, secure, and efficient payment solutions.”

The Mukuru wallet designed specifically for the Malawian market comes with two pockets;  “Nyanja” and “Moyo”. Nyanja is for all domestic money transfer transactions and cash-ins, while Moyo is for customers to receive international money transfers. An added benefit for customers includes no fees charged when cashing out from the Moyo pocket.

Mike Cook, Head of Wallet and Card at Mukuru customers will also earn interest on the funds in their wallet quarterly. “This is a strong incentive for customers to engage with digital money, further helping them along the financial inclusion journey,” he said.

Cook explains that by providing a safe, secure digital means of storing money, while enabling them to pay bills directly from the wallet, Malawians will not only benefit from the reduced risk of not having to withdraw large sums of cash, but they can also actively partake into the modern, digital financial economy. “This is what financial inclusion is —providing people with the platform to be included in the mainstream economy,” he says.

The launch which Mukuru takes pride in —is an important step in its overall strategy of being a leading payment platform that enables emerging consumers to transition from cash to the digital world. Importantly, it’s a critical component in the business’ drive towards digital transformation in Malawi, which involves modernizing financial services, enhancing user experience, and promoting financial inclusion.

The post Mukuru Expands Digital Financial Services with New Mobile Wallet Launch in Malawi appeared first on PC Tech Magazine.

Suppose you’re looking to revolutionize how your customers interact with money while boosting your brand. In that case, this is your guide to launching a white-label mobile wallet solution that will have you riding the digital payments wave in no time.

Why white-label: the shortcut to innovation

When you think of mobile wallets, names like Apple Pay, Google Pay, or PayPal probably come to mind. But what if your business could offer the same level of convenience and security with your brand at the forefront?

A white-label solution lets you do just that — you get a fully customizable mobile wallet, ready to be personalized with your branding, and packed with the latest features.

Key features of a white-label digital wallet

Your white-label mobile wallet will come packed with features that make it a dream for businesses and users. Here’s what you can expect under the hood:

1. Multi-currency wallets

Your mobile wallet can be configured to support multiple currencies, making it perfect for international customers. Whether your users need fiat, crypto, or digital assets, you’ve got it covered. Offering seamless currency exchange within the app also opens up additional revenue streams.

2. Secure P2P payments

The mobile wallet supports peer-to-peer (P2P) payments, letting users transfer money to friends, family, or businesses with just a few taps. Whether it’s splitting a bill, sending a gift, or paying for services, these transfers are instant, secure, and hassle-free.

3. Contactless payments

The future is contactless, and your white-label mobile wallet will be fully equipped for it. Tap-and-go payments with NFC technology enable users to pay at merchants, stores, or online platforms using their mobile devices, ensuring frictionless transactions.

4. Loyalty and rewards programs

Imagine rewarding your customers for using your wallet! Loyalty programs and rewards are built right into the app, allowing you to offer cashback, points, discounts, and more. You can create customized incentives that drive user engagement and retention, all under your brand.

5. Bill payments and top-ups

Utility bill payments, mobile top-ups, and other everyday transactions are made simple. Users can manage their finances directly from your app, with seamless integration to service providers.

See also: Common card payments myths and misconceptions by Ugandans debunked

The business benefits of a white-label mobile wallet

Now that you know what a white-label mobile wallet can offer your customers, let’s talk about the tangible benefits for your business:

• Revenue generation

Mobile wallets open up new revenue streams through transaction fees, currency exchange commissions, and value-added services like bill payments or mobile top-ups. You can even create subscription models for premium features or offer advertising space within the app.

• Cost efficiency

Developing a mobile wallet from scratch requires significant investment in time, money, and resources. White-label solutions eliminate much of this burden, providing you with a high-quality product at a fraction of the cost. Plus, the provider typically handles ongoing maintenance and updates, freeing your team to focus on growth.

• Market expansion

With multi-currency support and cross-border payment capabilities, a white-label mobile wallet allows you to reach customers in new markets, expanding your footprint without geographical limitations.

• Data insights

One of the hidden gems of mobile wallets is the treasure trove of user data you can gather. Payment patterns, user preferences, and spending habits provide actionable insights that can fuel smarter business decisions and personalized marketing strategies.

How SDK.finance powers your white-label mobile wallet launch

SDK.finance offers a white-label mobile wallet solution to launch your PayTech product with ease. With a powerful set of features, pre-built integrations, and endless customization options, SDK.finance helps you build a wallet app that not only meets market demands but also delivers a superior user experience.

Key SDK.finance mobile wallet Platform features:

• Multi-currency accounts: Your customers can manage unlimited accounts, storing anything from traditional currencies to digital assets like crypto or even commodities such as gold or grain.
• Fast bank transfers and bill payments: Enable quick, seamless transactions, from peer-to-peer payments to bill payments and top-ups.
• Currency exchange: Let users exchange currencies directly within the app at competitive rates.
• Card issuing: Offer your customers virtual or physical cards, fully integrated with their mobile wallet accounts.
• Transaction history: Provide users with a detailed view of their past transactions, boosting transparency and trust.

Therefore, a white-label mobile wallet solution is your passport to entering the booming digital payments market with minimal risk and maximum reward. With SDK.finance, you can offer a highly secure, customizable, and feature-rich mobile wallet that puts your brand front and center. Whether you’re a bank, telecom a retail business, the opportunity to offer seamless, secure financial transactions is now within reach.

Go to market in weeks, win customer loyalty, and start generating revenue with a mobile wallet solution that’s as unique as your brand.

See also: OP-ED: How digital payments benefits customers, businesses and the economy

The post Revolutionize Payments with a White-Label Mobile Wallet Solution appeared first on PC Tech Magazine.

Airtel Money’s Head of Operations, Ms. Hope Ekudu shared that the partnership will further promote digital financial inclusion in Uganda. “Airtel Money has always been committed to delivering innovative, secure, and borderless financial services to our customers,” she said. “Through this partnership, our customers can now make cashless transactions for fuel purchases and access other services at Stabex fuel stations across the country using their mobile wallets.”

Ekudu revealed that customers who pay with Airtel Money will be entered in a draw for a chance to win exciting prizes including a brand-new Toyota RAV4 Hybrid SUV, motorbikes, and e-money. The draw is part of Airtel’s ongoing nationwide Vroomula Amajja campaign.

According to the Uganda Communications Commission (UCC) 2024 Quarter 2 report, mobile money transactions have risen to 1.84 billion, up from 1.72 billion in the previous quarter. This growth underscores Airtel Money’s ongoing efforts to promote cashless transactions by encouraging Ugandans to use their mobile wallets for a variety of services, including sending money, depositing or withdrawing cash, mobile banking, bill payments, Airtel Money Pay, international money transfers, airtime purchases, and fuel payments.

Justus Kiptoo, General Manager of Stabex International said the growth in mobile money transactions has inspired them to partner with Airtel Mobile Commerce Uganda to simplify fuel purchases and other services for their customers.

“At Stabex, we are always seeking ways to provide our customers with greater convenience and value,” said Kiptoo. “We believe this collaboration will encourage more Ugandans to embrace cashless payments, making transactions faster and more secure.”

This partnership is an addition to the other initiatives Airtel Money has undertaken to promote cashless transactions and highlights the ongoing Vroomula Amajja campaign that is changing the lives of Ugandans. Over 2,000 Airtel Money users have been rewarded with various prizes, including 52 motorbikes worth UGX200 million and daily cash rewards for cashless transactions.

“With the focus on giving Ugandans instant, secure, and borderless, our efforts are not only changing how Ugandans transact; we’re changing lives. We’re fueling dreams, powering ambitions, and driving the nation towards a cashless future where every transaction opens a world of possibilities,” said Ekudu.

The post Airtel Money Partners with Stabex to Drive Cashless Payments at Fuel Stations in Uganda appeared first on PC Tech Magazine.

Ms. Grace Muliisa, Managing Director of Ecobank Uganda while emphasizing the partnership’s importance for Ugandans at home and those in the diaspora, particularly in the United Kingdom, the United States, and the Middle East, noted that the collaboration makes it easier for Ugandans abroad to send money to their loved ones, friends, and others in Uganda.

“There is a growing need to provide seamless financial solutions to Africans in the diaspora,” said Muliisa. “We are excited to collaborate with Ria Money Transfer to enhance the security and efficiency of remittance services for all Ugandans.”

Muliisa also highlighted how the partnership aligns with Ecobank’s mission to offer unmatched convenience in global funds transfer services and strengthen its position as a trusted partner for the Ugandan diaspora.

Mr. El Hadj Malick Seck, Managing Director of Ria Money Transfer in Africa, echoed these sentiments, highlighting that the collaboration is a valuable addition to Ria’s network, which spans over 580,000 physical locations in almost 200 countries. In addition, he also noted the importance of East Africa, particularly Uganda, in Ria’s operations and emphasized how the partnership would provide even greater convenience to Ugandans sending money back home.

The post Ecobank Uganda, Ria Money Transfer to Enhance Remittance Services appeared first on PC Tech Magazine.

“We have partnered with Sasai Money Transfer on their innovative initiative that aligns with our agenda of ensuring financial inclusivity for all Ugandans,” said Mr. Japhet Aritho, Managing Director of Airtel Mobile Commerce Uganda Limited. “This offer brings even more value to our customers, coinciding with our big consumer promotion, Vroomula Amajja, which offers customers a chance to win daily cash prizes, weekly Boda-Boda prizes, and a Toyota Rav4 Hybrid by simply receiving remittances into their Airtel Money wallet.”

Sasai Fintech CEO, Mr. Darlington Mandivenga said the partnership with Airtel Money Uganda offers an important avenue into one of Africa’s largest remittance markets.

“As Sasai, this is where we want to be, ensuring we reach as many people as possible and ultimately leave no African behind,” Mandivenga said in a press statement —adding “We are in a competitively unique position where we have been able to utilize our source market assets, operational efficiencies, and group synergies while collaborating with like-minded partners such as Airtel Money to deliver innovative offerings.”

Also read:

• • Bank of Uganda grants NALA an IMTO licence, a catalyst for Uganda’s financial future
  • Flutterwave secures PSO licence from Bank of Uganda, paving the way for Pan-African expansion

This innovative offering eliminates remittance sending fees for users of the Sasai Money Transfer service in the United Kingdom and South Africa sending money to family, friends, business partners, etc in Uganda. The partnership with Airtel Money Uganda ensures that the recipient also enjoys similar benefits by cashing out their funds for free from their Airtel Money wallet. Overall, this end-to-end customer proposition offers unique benefits of improved access and affordability to both the sender and receiver.

The current reality in the African context is that informal remittances are still prevalent exceeding the volume of formal remittances flowing through official channels. This high level of informality presents a challenge for African migrants many of whom end up losing their hard-earned money to unscrupulous intermediaries. In line with the vision of a digitally connected future that leaves no African behind, Sasai is leading the charge of digitizing and formalizing remittances and making the services more accessible and affordable for all Africans. The goal is to close the gap between formal and informal money transfers and ensure that no one is excluded from these essential services.

The zero fees initiative by Sasai marks another first in the remittances industry, where a money transfer operator has effectively collaborated with mobile money operators to focus on a single goal: making money transfer services more affordable. In an industry where fees can be as high as 13%, the zero fees initiative holds enormous long-term potential to contribute to the formalization of international money transfers, the bulk of which still flow through unsafe and unreliable informal channels.

See also: OP-ED: mobile money taxation could hamper financial inclusion gains in Africa

The post Sasai Money Transfer, Airtel Money Uganda Partner to Offer Free Remittances appeared first on PC Tech Magazine.

“We’ve worked closely with the Bank of Uganda to meet all the requirements, which will help us make remittances more accessible for everyone. Plus, with this license, we will boost the supply of foreign exchange in Uganda, which is critical for economic growth,” NALA COO, Nicolai Eddy, said in a post on LinkedIn on Thursday.

The newly acquired IMTO licence aligns with NALA’s commitment to fostering financial inclusion and supporting Uganda and Africa’s economic growth.

Combined with their recent USD$40 million Series A funding, this represents a big step forward for the fintech company. Through their new API RAFIKI, sending and receiving money will now be more accessible and more efficient, which is crucial for many families in Uganda.

“From what we see at NALA through our Rafiki API and the data from the Bank of Uganda, a lot of remittances go towards basic needs like education, medical care, and other household expenses. While the process of remitting money has improved, there’s still more to do to make sure these remittances keep supporting people’s lives effectively,” noted Nicolai.

NALA’s licence acquisition comes a day, the Bank of Uganda also granted Flutterwave a Payment Systems Operator (PSO) licence which allows businesses access to Flutterwave’s comprehensive suite of payment solutions, enabling them to collect payments from their customers in their preferred payment method, facilitating seamless transactions, and enhancing financial inclusion.

The post Bank of Uganda Grants NALA IMTO Licence, a Catalyst for Uganda’s Financial Future appeared first on PC Tech Magazine.

“Receiving this license shows we are committed to complying with all applicable laws and regulations in Uganda,” said Rotimi Okungbaye, Product Marketing Manager at Flutterwave. “We are grateful to the Bank of Uganda for their trust and vote of confidence in our ability to contribute to the growth and development of Uganda’s digital payments ecosystem.”

The PSO license allows businesses access to Flutterwave’s comprehensive suite of payment solutions, enabling them to collect payments from their customers in their preferred payment method, facilitating seamless transactions, and enhancing financial inclusion. In addition, the license allows Flutterwave in partnership with other licensed players to allow Ugandans in the diaspora to send money to their loved ones, friends, business partners, etc back home.

Okungbaye noted that the now-acquired license opens doors for previously hesitant businesses to finally expand their business operations into Uganda, knowing payment is one less thing to worry about while growing their business. “One more reason we are excited about this license is because it solidifies our position as a trusted partner for global businesses looking to enter or expand their operations in Uganda.”

Uganda’s rapidly growing digital economy fuelled by a youthful population and a growing acceptance of digital payments, presents a great opportunity for large businesses seeking to widen their reach in Africa. Uganda’s favorable business environment, coupled with a rising middle class, also offers significant potential for business growth.

Flutterwave has been a key player in Africa’s fintech revolution, providing innovative payment solutions to businesses and individuals across Africa. The acquired PSO license from the Bank of Uganda aligns with the fintech company’s strategic goal to support local businesses and contribute to the digital economy’s growth in the region.

Flutterwave’s expansion into Uganda is part of its broader strategy to increase its footprint across Africa, offering tailored solutions that meet the diverse payment needs of the continent’s businesses and consumers.

See also: Bank of Uganda grants NALA IMTO licence

The post Flutterwave Secures PSO License from Bank of Uganda, Paving the Way for Pan-African Expansion appeared first on PC Tech Magazine.

Commenting on the re-certification, Safaricom CEO, Mr. Peter Ndegwa said, “This certification is evidence that we have taken a step further to ensure that customers’ funds are in safe hands, that their rights are being observed through our business practices, and that a high level of customer service can be expected.”

He adds “Certification is a sign that our business practices are among the best in the industry, that we are providing a secure, transparent, and reliable mobile money service. We are a trustworthy and responsible mobile financial service provider and an attractive candidate for collaboration with innovators and the business community.”

M-PESA was one of the pioneering mobile money operators to receive this accreditation in 2018 and has consistently maintained its certification. The mobile phone-based money transfer service continues to play a crucial role in developing Kenya’s financial sector and has gained popularity globally in the past decade. There are 31.5 million active M-PESA users, processing over KES40.2 trillion in transactions annually (as of the end of March 2024).

With over 690 million registered accounts globally, mobile money services are significantly contributing to financial inclusion and improving lives worldwide.

See also: Safaricom hits 1,000+ 5G sites, expands coverage across all Kenyan counties

The post GSMA Re-certifies’ Safaricom’s M-PESA appeared first on PC Tech Magazine.

This problem arises when a customer is billed more than once for a single transaction, which can happen due to various reasons, such as system errors, network issues, or user actions.

Understanding double payments

Double payments typically occur when a transaction is initiated multiple times without a proper check. Common causes include:

• Network failures: If a payment request fails due to a poor internet connection, customers may retry the transaction, leading to multiple charges if the initial request is processed after the retry.
• User behavior: Customers may inadvertently click the payment button multiple times, especially if there is no indication that the transaction is being processed.
• System errors: Bugs or glitches in the payment processing system can result in duplicate transactions being recorded.
• Concurrency issues: In environments where multiple users can process payments simultaneously, such as admin dashboards, two users may trigger the same payment action.

These issues can create confusion for customers and damage a business’s reputation, making it essential to establish safeguards against double charging.

1. Implement Idempotency Keys

One of the most effective ways to prevent double charging is to use idempotency keys. An idempotency key is a unique identifier generated for each payment request. When a customer initiates a payment, this key is sent along with the request. If the same request is made again with the same key, the payment processor recognizes it as a duplicate and does not process it again.

This method ensures that even if a customer retries a payment due to a network issue, they will not be charged multiple times.

2. Utilize Database Transaction Management

Proper database transaction management is essential for maintaining the integrity of payment records. By implementing atomic transactions, businesses can ensure that payment statuses are updated correctly. For example, when a payment is initiated, the status can be set to “Processing.” The database can prevent concurrent updates, ensuring that only one payment process can change the status at a time. This approach minimizes the risk of double charging due to race conditions.

3. Employ locking mechanisms

In situations where multiple processes could trigger the same payment action, locking mechanisms can be beneficial. By implementing locks or mutexes, you can prevent simultaneous attempts to process the same payment. While this method can introduce complexity, it is effective in environments where multiple users may initiate payments concurrently.

4. Incorporate Retry Logic

Payment systems often face network interruptions or timeouts. To handle these scenarios, it is crucial to implement retry logic. This ensures that if a payment fails, the system can automatically attempt to process it again. However, with retry logic in place, it is essential to ensure that the system can distinguish between a successful payment and a retry of a failed one, which can be managed through idempotency keys.

5. Enhance User Interface Design

A well-designed user interface can significantly reduce the likelihood of double payments. For instance, disabling the payment button after the first click until the transaction is completed can prevent users from submitting multiple requests. Additionally, providing clear feedback during the payment process, such as loading indicators or confirmation messages, can help reassure customers that their transactions are being processed.

6. Set up monitoring and alerts

Implementing a monitoring system that tracks payment activity can help identify unusual patterns, such as multiple charges for the same amount within a short timeframe. Setting up alerts for administrators can enable quick responses to potential issues, allowing businesses to address customer concerns promptly.

7. Regular testing and validation

Regularly testing the payment processing system is vital to identify and resolve potential issues before they affect customers. This includes validating that the payment processor correctly handles edge cases, such as network interruptions or user errors. Conducting thorough testing can help ensure that the system operates smoothly and reduces the risk of double charging.

See also: Six ways Ugandans can keep their card payments secure

The post How to Avoid Double Charging During Online Payments appeared first on PC Tech Magazine.