Guest Writer: +Victor Mutua
LipaCard is Kenya's first ever financial service start up in
the education sector handling students’ stipends, food, pocket and
miscellaneous money.
We
provide a debit card to students which allow them to pay bills at school and
receive top up from parents and guardians real-time via mobile money or Bank
deposits.
Most students in High schools attend boarding schools. They
spend over 80% in school and need upkeep money during this period. The money is
given to them during opening and visiting days and most times through teachers
and staff using mobile money which. Some parents opt to use courier service to
send parcels containing cash.
The government has forbidden phones in schools despite the
fact that 70% of transactions are done via mobile money. Hence students cannot
be able to access this money. For us, this is an enormous niche that has not
been exploited before, considering Kenya's and East Africa's demography has a
big population below 18 years.
The major disadvantages faced currently are insecurity since cash can be lost or stolen. It's time consuming and very inefficient as well as costly. Most schools don't like the idea of students having cash with them as we pointed out in our feasibility study.
The major disadvantages faced currently are insecurity since cash can be lost or stolen. It's time consuming and very inefficient as well as costly. Most schools don't like the idea of students having cash with them as we pointed out in our feasibility study.
After a random request, I’m glad to be the first guest
blogger on this page knowing very well the internet doesn't forget. I’m
crazy and like most techies, my brains work better at night. So over the long Christmas
holiday at the margin of Africa’s biggest tropical forest where I had gone to
visit my aunts, I came up with a brilliant idea.
First, I figured that most students in high schools are below the Adult age in Kenya and that they are mostly in Boarding schools. These kids are not allowed to have phones in school and the government too doesn't since it restricts only citizens of legal age to have phones. Recently, it was announced that 70% of transactions are done via Mobile money. On the other hand, Kenya's population is a pyramid with a lot more young people. This means there is a niche in the financial sector.
With that in mind, we introduced a card to allow parents pay or rather send stipends to their students in school much easier and swiftly. It’s also less costly and more secure to have LipaCard.
Major stakeholders who include school heads, parents and students have been impressed and think it would be brilliant to expand our product. LipaCard seals the loopholes with our swift and secure product. We deal with virtual money and protected by PIN and resistant to fraud.
So far, we are working with Diamond Trust Bank to handle our cash, providePOS and do banking advisory. We also have mobile
money from Safaricom and pursuing Airtel.
Prior to that, we had/have a modern banking system approved by DTB. The system enables smooth and efficient transactions that include top up via Mobile money and bank, produces report to merchants and card holders, registration of cards, payments and withdrawals. It's an integration of an aspx system hosted byIBM , an Android Mobile App that
utilizes NFC Technology and a POS .
My company has a staff of five, three experienced computer science graduates, a product localization expert and I still a BSc. Telecommunications student at Kabarak University, with an Accounting background from Strathmore and having worked with Google as a GSA and a Business Development intern.
First, I figured that most students in high schools are below the Adult age in Kenya and that they are mostly in Boarding schools. These kids are not allowed to have phones in school and the government too doesn't since it restricts only citizens of legal age to have phones. Recently, it was announced that 70% of transactions are done via Mobile money. On the other hand, Kenya's population is a pyramid with a lot more young people. This means there is a niche in the financial sector.
With that in mind, we introduced a card to allow parents pay or rather send stipends to their students in school much easier and swiftly. It’s also less costly and more secure to have LipaCard.
Major stakeholders who include school heads, parents and students have been impressed and think it would be brilliant to expand our product. LipaCard seals the loopholes with our swift and secure product. We deal with virtual money and protected by PIN and resistant to fraud.
So far, we are working with Diamond Trust Bank to handle our cash, provide
Prior to that, we had/have a modern banking system approved by DTB. The system enables smooth and efficient transactions that include top up via Mobile money and bank, produces report to merchants and card holders, registration of cards, payments and withdrawals. It's an integration of an aspx system hosted by
My company has a staff of five, three experienced computer science graduates, a product localization expert and I still a BSc. Telecommunications student at Kabarak University, with an Accounting background from Strathmore and having worked with Google as a GSA and a Business Development intern.
We have an advisory board that keep the company in check and
oversee the progress of our venture. The two members have vast experience in
entrepreneurship, business development and own a couple of companies ranging
from pharmaceuticals and real estate to marketing.
We also have a lawyer for legal purposes including drafting of contracts and advisory on related matters.
Currently, we are about to start our first phase targeting 10, 000 card holders. With a projection of 1M Ksh from card sales and 280K monthly from card sales (Ksh 200) and a service charge of Ksh 10 monthly and 2% from top ups to the cards.
Visit the website here or make a
call on +254 720 357 072 for more information and sign up a school. Its free
I live
on the twitter streets as @vic_tua
Thank you for reading guys! Have a lovely Wednesday.
Doing Cool Things That Matter!
#HappyDays
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