Mobile Banking the Answer for Africa's Unbanked - MXit

CAPE TOWN, South Africa, November 24 - Globally, mobile banking will become three times more popular
than traditional banking by 2011 and MXit, the mobile social network and
instant messenger, is poised to offer banks in Africa a safe, seamless
transaction platform that eliminates entry barriers like data costs and
safety.

Jaco Hattingh, CEO for MXit Africa, predicts that in Africa,
where there are over 300 million adults with no access to financial services,
there will be a mass move from traditional banking services, that offer
savings and cheque accounts, to those that allow for person-to-person
transactions through mobile devices.

"According to Gartner, 73 million transactions are expected
for 2009, however there is room for further growth if we overcome challenges
like financial literacy in developing countries, as well as trust issues
involved with mobile technology and the related costs of accessing the
internet via a mobile phone," says Hattingh.

"This is where MXit comes in. The low data costs of operating
a mobile social network and instant messenger allows banks to deliver mobile
banking solutions that cost a fraction of the cost of normal data downloads
through traditional mobile internet platforms. We have proven that this can
work through the transactional platforms that we've provided on MXit for two
of South Africa's leading banks. We've offered First National Bank (FNB) and
Standard Bank clients the ability to do mobile banking solutions via MXit,"
continues Hattingh.

Any FNB account holder can purchase MXit Moola (MXit's virtual
currency) for friends and family in a cost effective and safe manner via the
MXit platform. Traditionally, Moola could only be purchased by means of a FNB
credit card or a premium rated SMS. The Standard Bank mimoney payment method
is for individuals who would like to transact on a website or mobi-site, but
do not have access to a credit card. mimoney clients can now buy MXit Moola
via mimoney without having to use a credit card.

These products are designed to meet the needs of the mobile
savvy market. 40% of the South African population, even though it is
considered the most developed banking country in Africa, do not have access
to a bank account.

"Mobile phones present an opportunity to provide quality
banking solutions for all. In developing countries like Africa, with a huge
unbanked market, innovative banking and payment services like these could
provide the first step towards breaking out of the poverty trap for
low-income individuals. While in developed markets it simply means
convenience for an increasingly mobile lifestyle," says Hattingh.

The challenges of increased access to mobile banking are clear
- however by working with platforms such as MXit these challenges can be
overcome by offering clients access to a cost effective mobile banking
application that is available anytime, anyplace. The mobile banking model is
based on serving all income groups: teenagers, students, business, high net
worth individuals and the informal sector are all able to access financial
services via their mobile phones

The banking industry's growth in the African informal market
is further aggravated by the tough anti-money laundering regulations set by
governments which require proof-of-identity documents to be presented at a
bank branch. Presenting these documents, in order to open an account, can
often be prohibitively expensive for low-income customers

"We believe that our transaction platform is an opportunity
for all developing markets, not only Africa. Currently there are 4 billion
mobile phones, but only 1.6 billion bank accounts. There is an enormous
opportunity to reach the unbanked by means of mobile banking that is driven
by MXit's transaction platform. Developing countries are short of both
physical banks and internet outlets, so banking from mobile phones is the
logical solution," continues Hattingh.

The combination of mobile payment solutions, combined with the
ease of use, makes this the perfect solution for all individuals, across all
income groups.

"The ability to access money transfers, mobile communication,
mobile banking, mobile payments and the reduced risk of theft is an appealing
solution for individuals who want access to financial services without the
worry of going in to a branch or being PC-bound," says Hattingh.

"Banks and financial service institutions would do well to
partner with established mobile social networks like MXit, with a proven
record in developing business platforms for the banking sector - it will
certainly address the issue of cost as transacting on the MXit platform is
relatively free," concludes Hattingh.

MXit, with close to 17 million subscribers, has already
secured its place as the most popular mobile social network and instant
messenger in Africa and is currently on a massive expansion drive to secure
its leadership in South East Asia, Latin America and the Caribbean. Its
growth and success is firmly based on its ability to read global trends and
develop the level of innovation that has endeared it to its massive
subscriber base.

About MXit

MXit is a free instant messaging and mobile social networking
application for both mobile phones and PCs. It allows members to chat to
other MXit users anywhere in the world. It also allows users to send text
messages to and from mobile phones and PCs using GPRS or 3G instead of using
standard SMS technology, which is expensive.

The social networking element of the business is the
cornerstone of its growth. MXit is a new generation company that boasts just
over 17 million members globally and is growing by 20, 000 and 28,000 users
per day - while processing 250 million messages per day. It is in constant
evolution to match the needs of its users and is set on becoming one of the
biggest instant messaging mobile networks in the world and the preferred
mobile social network for communicating with young people in South East Asia,
Latin American, Africa and globally.

The company introduced mobile instant messaging to South
Africa. It started as a mobile game developer and evolved into a mobile
instant messaging company, allowing its users to send messages at a fraction
of the cost of traditional SMS.

To download MXit: Open your mobile browser, type in
www.mxit.com/wap and simply follow the prompts.

Issued by:

FD Beachhead

Sandra Sampayo, +27(0)79-167-6863 or +27(0)21-487-9000,
sandra.sampayo@fd.com

Jean Dennis, +27(0)83-500-5302 or +27(0)21-487-9000,
jean.dennis@fd.com

Sandra Sampayo, +27(0)79-167-6863 or +27(0)21-487-9000, sandra.sampayo at fd.com; Jean Dennis, +27(0)83-500-5302 or +27(0)21-487-9000, jean.dennis at fd.com