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Skype Credits vs Vodacash vs national payment
Posted: 7 June 2007

There have been literally hundreds of global attempts a e-wallets in the last 10 years (I have personally been involved in 2 of them, one here, and one the Philippines). THe problem has always been threefold.
1) How do you fund the wallet? (usually from a credit card, which makes it a non-starter in SA and Africa - too few with credit cards).
2) How do you redeem value? - need merchants to trust and accept the e-wallet - which is where Visa/Mastercard/Amex have the best chance of competing with PayPal et al.
3) Need the reserve bank to approve - will never happen in SA, becuase the authorities need to track money flow. PayPal in the US has managed to get enough critical mass to become part of the national payment system

Nevertheless, PayPal, particularly is a monster threat to the established payment monolopies (banks, card associations, national monetary authorities).

Watch for US legislation here - they will absolute have to regulate, otherwise tax evasion and lack of monetary visibility could become a national security issue.

Taxman loses in the race to dominate the online payments market
Dateline: 9 February 2010
Since eBay and PayPal allowed users to charge and pay with Skype credits, the banks and credit card companies have been running scared. That was until Nokia, Visa and Vodafone launched their VodaCash global payments platform. Now it's an all out war for the payments standard of the future, while Second Life waits in the wings with Linden Dollars. Traditional banking is dead - long live ...
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