BUSINESS TECHNOLOGY IDEA FOR CAMPUS: E-PURSE.

I guess the proper question to ask should be: CAN YOU TELL ME ABOUT EPURSE? HOW DOES EPURSE MAKE THE ABOVE CLAIMS POSSIBLE?

E-purse is a cash replacement system with absolute cash equivalent. It is specially designed to make all transactions between buyers and sellers, primarily on a face-to-face level possible. With E-purse, an empty pocket, ATM unavailability, bank unavailability, and POS unavailability cannot stop you from spending or buying, or paying for what you need. It is an electronic system that provides the possibility to perform all face-to-face transactions that revolve around our daily activities without the need for liquid cash. This means, items or commodities from petty sellers, hawkers, shops or kiosks owners, market traders, shopping malls, filling stations and many other service rendering ventures like taxi service, laundry service, hospital or clinical services, saloon services, eatery services, and many other services can be paid for without the use of cash.

E-purse simply abolishes the stringent conditions attached to cash withdrawal and other problems associated with spending of cash. With epurse, you operate an electronic purse that enables money spendable at any location and at any time without constraint. It is a system with unlimited usage that can be used for different transactions at any time and at anywhere without charges – absolutely free and unlimited in usage.

Performing or carrying out various daily transactions almost seems impossible without issuing cash. An average person can hardly go a day without paying for one form of service or the other through cash. The popular transport systems in Nigeria such as taxis, bikes, tricycles, and other services like food and house services are a few out of the many services we pay for in cash.

Also, the purchase of items in markets, kiosks, and shops, as well as those hawked are often paid for by issuing cash. Nigeria is a perfect example of a country whose mode of operation in the exchange of goods and services takes the form of cash dependency, that is, it gives high credence to the use of liquid cash for transactions. Consequently, the excessive use and total dependence on liquid cash for most of these daily transactions have made cash in high demand which in turn has created more problems.

Today, ATM points are often filled or crowded with a large number of people pressing really hard to make withdrawals and perform a host of other activities. Even in the midst of this, some people get disappointed by the ATM’s inability to temporarily dispense cash after several minutes or hours of waiting. Some other persons alternatively settle for the bank withdrawal slip all because of the extreme dependence on cash for the purchase of goods and services that basically answer immediate needs. Therefore, the extreme dependence on cash for almost all of our transactions has rendered the various channels of accessing cash highly strenuous and less effective in meeting the financial needs of people.

Similarly, cash withdrawn from ATMs is often high in value (usually #500 or #1000) which has the demerit of not being able to purchase an item of a low amount. Cash is withdrawn often becomes a challenge to spend because of the value of cash dispensed by the ATM. Attempting to buy a commodity worth #10 by issuing a #500 note frustrates the transaction. Buyers and sellers are often caught in the web of this problem. Meanwhile, five hundred naira (#500) in most cases is the least an ATM would dispense, but this denomination however could be too high when a low worth of a commodity is involved in the transaction. Many traders are fond of using the language: “no change” when given a higher currency like the #1000 note for the purchase of an item or a service that cost #50. For someone who intends to board a taxi to a destination where the transport fare only cost #50, he or she is likely to receive the response “no change” from a good number of cabmen. The same applies to cyclists, hawkers, and kiosk owners who sell petty stuff.

Oftentimes, banks and ATM points get congested with people trying to make withdrawals. Many people get stressed out and have their time wasted in queues over cash withdrawal, but with E-purse, the need to visit the bank, or ATM, or use the POS becomes irrelevant as E-purse presents the possibility to spend money electronically for any and every form of face to face transaction.

The problem of cash issuing compulsion before one can buy items or pay for services.

People sometimes misplace cash and forget their wallet or purse at the home, office, or somewhere, in fact, some other persons run out of cash during a trip and in the process of trying to purchase a commodity or pay for a service realize they are stranded just because they have no liquid cash. But with E-purse, there is absolutely no need to be worried about the need for cash before transactions can be made. With E-purse, you can buy anything and pay for every service without cash. Money is spent electronically without stress.

People's continuous usage of ATMs and banks for withdrawal sometimes creates the temporary problem of cash unavailability or insufficiency. ATMs after multiple uses run out of cash; becoming temporarily unable to dispense cash. Also, the bank service sometimes hampers transactions; making it unreliable for emergency use. Furthermore, areas without banks, POS, and ATM points find it difficult to access cash, but with E-purse, the failure of banks to issue out money or ATM to dispense cash will become history. An individual will constantly have money to spend without having to use the ATM, bank, or POS.

Even after making a withdrawal with the ATM, the cash maximum and minimum which is usually #1000 and #500 respectively often become difficult to spend. For example, a buyer who gives a #1000 note to a seller for the purchase of a commodity of #10 may have his money rejected because the seller is likely to complain that he/she has no change. However, with E-purse, there is no need to be bothered either as a buyer or a seller. The actual amount of a commodity or a service is paid without having to look or go in search of “change”.

Popular with the use of ATMs for cash accessibility is the Problem of long and congested queues which leads to time wastage, stress, and cash exhaustion. Also, banks excessively deduction of bank charges.

How can an individual whose bank is not available in a particular place even think of using the withdrawal slip to access cash? A withdrawal slip can only be used where one’s bank is available. Consider a situation where one visits a village or a place with no bank or ATM and unfortunately runs out of cash, how will such individual access cash? He or she simply gets stranded. Thus, the use of bank withdrawal slips is limited to the availability of banks.

However, with E-purse, the abovementioned problems that characterize the various systems that make cash accessible are sent into extinction.

The success of E-purse is largely dependent on campuses. This is where the main business is. E-purse won’t be going all out into larger society. Penetration begins from campus and then into the larger society. This is what I will be discussing in part 2 of this post. There you will understand how the business structure for this idea can be built. Watch out!