The rise of DIGITAL beggars

Payment Technologies have made life easier for most of us here in Kenya. The same technology (mobile money) is now producing digital beggars. What is a digital beggar? Well.. lets find out.

Internet is awash wish stories of how mobile money users have been duped and no much assistance came from the companies offering mobile money solutions. Until a few years ago, someone could clone your sim card and borrow money in your name and when you report it, you will be asked to go file a police report (unfortunately thats where the search for your money ends).

Isn't that how we reduce consumers to digital beggars (Type 1)? They need to borrow money to chase the initial money they lost, they also need to borrow more to (endlessly) bounce between the providers and law enforcement with little or no hope of finding the culprit/money.

Lets now delve into Digital Beggar (Type 2)

Scenario 1: You sent money to the wrong Paybill/Till number. Hakikisha, Safaricom's way of validating the transaction before it is completed doesn't always work- especially when using the app. Mobile money provider take 72 hours to get back to you after reporting the incident. Assuming you wanted to pay a hospital bill and you missed one digit, you just joined the long list of digital beggars.

Scenario 2: A customer from Uganda sends you mobile money, the amount is greater than 150,000Ksh (by maybe 46 shillings - Forex gain), the sender cannot reverse the transaction and the receiver does not receive a cent. It will take another week of digital begging (if your are lucky) before it is resolved. Note: 150,000Ksh was once the transaction limit, or maybe it still is for cross border transactions.

Scenario 3: You get into your online banking app at 8am (after praying that it works today), you withdraw money to your mobile wallet so that you can pay for groceries etc. No money reflects in your mobile wallet 1 hour later. When you call the bank they apologise and inform you that it will be reversed into your account. Guess what time? After 5pm. Just like that they have made you into a digital beggar. Now pray that they don't forget to do that by 5pm.

While Kenya and the region is being touted as one of the most innovative in mobile money, it is amazing how much consumer protection is availed to customers. To commemorate World Consumer Rights Day (March 15th), I am hoping that guys like COFEK, CAK, CBK and other regulators will take a serious look into how much consumers go through to resolve some of these seemingly simple issues.

Whats your digital beggar story?

Have you been a Digital Beggar before?