Only 20% of South Africans use banks, but more than 80% of us have cellphones. The obvious banking solution for a country such as ours is mobile-banking, says Venkat Eswara, director of marketing applications at Motorola.

Mobile commerce has taken off around the continent, where similar social scenarios exist, and it is now making strides in South Africa.

Eswara makes it clear that m-banking is not Internet banking on your cellphone. It does not require a bank account or Internet capability, and it works along mobile channels.

The user sets up an m-banking account on a basic cellphone, purchasing airtime vouchers and transferring the monetary equivalent of the voucher to another user, or to pay for something, he explains.

"Especially in remote or rural locations, where people don't have access to the Internet and banks, people can use a cellphone as a means, not only for communication, but also as a platform for financial transaction," said Eswara.

But this isn't just for people who don't bank.

"This is a solution not only for people in rural areas and the lower end of the market. High-end urban users can also make use of mobile channels to meet their needs. The service can be used for person-to-person money transfers, bill payments, mobile ticketing purchases, even parking fees could be paid with an m-banking account," he said.

Brian Richardson, the CEO of Wizzit Bank, a division of the South African Bank of Athens, who five years ago became the first mobile banker in the country, said the two main issues of security and cost have been addressed.

". All transactions are pin protected, just like ATM transactions," he said.

"Accessibility, efficiency and affordability are our unique selling points. Most of our clients are rurally based or live in areas where there are no banking facilities. They have to travel far, pay for taxi fares and wait in long queues. This process is long and costly," he said.

Eswara adds that costs, determined by service operators, should ideally be lower.

"Expect to pay less on the device, or the equivalent of Internet banking. It will be a cost that is profitable for the bank and operator - but remain affordable to the customer."

Wizzit has an ever-expanding list of clients (a number it likes to keep under wraps) and the country's major banks have their own versions of m-banking.

"The main challenges are creating awareness, trust and credibility around this product. Financial literacy is also a huge challenge. Cash is dangerous, but some people are still intimidated by technology," said Richardson.