With the unofficial Â launch of FNB’s new GeoPayment app yesterday,Â Mxit has hit back with a geo-fenced mobile payment application of their own.
The application is called Gust and a BetaÂ version is expected to be ready in June.Â While Gust runs on iPhones for the mobile phone user, the merchant side runs on an iPad.
This is how it works: When two devicesÂ are close to each other the merchant can request a payment from the mobileÂ phone user. Unlike other payment systems which use geo-fencing logic, GustÂ does not need a GPS device or even a GSM connection.
Rather, Gust simply uses wi-fi, your name and your photo to make a payment with devices onÂ the same wifi network, discovering each other using that basic information. With all communication occurringÂ over the wifi network, the payment process is very fast.
Gust started out as an experiment with geo-fenced payment experiences with a small team having built the Alpha version in just 6 weeks. TheÂ Mxit staff have been using a geo-fenced mobile payment system inÂ Stellenbosch, currently the only place where it is available, since early April.
“Merchants and users have been giving us very positive feedback. The plan isÂ to make Stellenbosch not only the first town to offer free wifi, but alsoÂ the first town where you don’t need cash,” says Botha.
For more about Gust, watch the video below:
Follow Gust on Twitter.