Coin Hoarders, Mobile Misfortunes, And Bank Buses

By Chanel Smith, EMEA Editor (@PYMNTS_EMEA)

Zambia: Coin Hoarding Gone Wrong

What’s In: Zambian coin hoarders releasing coins back into society so that taxi drivers and other small businesses can carry on with business.

What’s Out: Coin shortage problems making it difficult to conduct business in Zambia.

What Happened: Even some of the most organized people fall victim to minor hoarding tendencies, but coin hoarders in Zambia are taking this hobby to a new level.

They are known as numismatists – people who collect coins as a hobby and they are also largely responsible for driving the coin shortage problem present in several Zambian provinces.

When the country’s coins are released from the banking system and into the market, consumers have a tendency to keep these coins, which hinders circulation. The motivation behind coin collection is generally harmless. However the lack of coins is making it difficult for various merchants to carry on with business.

The Central Bank of Zambia reported the issue of coin starvation is being experienced in several parts of the country. Taxi drivers operating in the Southern Province of Zambia complain that business is difficult with the low availability of coins. Smaller businesses are highly dependent on coins to sustain their trade.

To help combat this problem, members of parliament have suggested replacing certain coins with paper banknotes, which are much lighter. If MPs can encourage consumers to use cash, then circulation would improve.

Spain Banks On The Road

What’s In: Bank customers in Spain being able to walk down the street and bank at the parked Bankia customer service bus.

What’s Out: Bankia customers traveling two towns over to the closest retail branch just to deposit cash into their accounts.

What Happened: It’s a bird, it’s a plane, it’s…a bank on wheels?

European banks are shrinking, cutting costs by reducing staff and closing down retail branches in remote locations. Spain is the EU country suffering most from bank cuts, which is why Bankia, a bailed-out lender in Spain, is attempting to save its customer base and recently announced its new “bank on wheels” for people living in rural areas in the Valencia region.

The bus service will travel to 17 towns in the region, and aims to make up for the bank’s lack of retail presence. Bankia reported that it was willing to provide the service because consumers who have been banking with the company for years needed access to their finances. The bus will provide most financial services, including cash and check deposits, withdrawals, account registration and more.

Desktop Or Mobile Shopping: Europe’s Eternal Struggle

What’s In: Using your smartphone to shop for your weekly groceries or new bed sheets while riding the metro back home. Imagine doing that ten years ago?

What’s Out: Taking up your entire work lunch struggling to enter your payment details on your mobile phone. This transaction could have been made much easier if the website had a mobile app design.

What Happened: Growing mobile penetration rates across Europe are leading many to predict that mobile commerce is the future of consumer shopping. The majority of Europeans are still making their online purchases on traditional desktops, but admit mobile shopping is highly attractive.

At present, only one-in-10 consumers are regularly buying via mobile technology. The lack of mobile app design development is a common challenge many Europeans face when shopping online. Technology is quickly entering the market, but consumers still expect newer mobile retail websites to load as quickly as the desktop sites do. No one likes to be kept waiting, and technical problems such as this leave a poor impression with customers. 

Click on the link to find out what other European shoppers said annoyed them about the mobile shopping experience.

Essex-Based Startup Challenges Mobile Wallet Market In UK

What’s In: Mobile wallet companies in the UK working with merchants to manage and control new payment initiatives.

What’s Out: UK Mobile wallet companies providing the same service, and having little differentiation in a crowded market.

What Happened: Turns out there is more to Essex, England than fake eyelashes and orange tans. An Essex native startup, Zync Wallet, launched a mobile payments wallet in the UK this week, and has already recruited 280 London merchants to integrate the solution.

The UK mobile payments market is becoming quite crowded, but Zync Wallet is determined to differentiate itself from the competition. The startup is merchant-focused, and claimed that is taking the opposite approach from its competitors.

“We’re built around the merchants’ needs, while the others are based around the technology first,” co-founder Andrew Smith told The Telegraph. “We try to give as much control to the companies as possible.”

Unlike some competitors in its vertical, Zync Wallet does not charge businesses set-up fees or administrative costs for accepting mobile payments. Merchants pay a fee for the service, and can choose between a pay-as-you-go package or a monthly subscription The media outlet said fees for the former package range from 1 percent to 5 percent.

To increase loyalty, Zync Wallet also allows retailers to set up branded loyalty schemes and personalized deals that can keep established customers returning.