Okay so I finally caught up with Glynn Low, the Marketing Manager of Data Nets Ltd and owners of PNG’s first e-commerce website Esi-Shop, so we could hear from them what their plans are. Please feel free to leave your comments and questions.
Hi Glynn, how are you? I wanted to talk to you about Data Nets e-commerce initiative, how did this come about and who was involved?
GL: E-commerce has finally hit PNG and it will change the way people do business. It will bring services closer and more convenient to people. It will enable them to buy and (in future) sell things to a global market. It was an initiative that we thought was needed in PNG.
What is your aim with the e-commerce initiative?
GL:Primarily this is an avenue that allows people to receive payment in PNG Kina instead of a foreign currency. This will allow people to develop portals and e-commerce websites in future.
What companies have you set up e-commerce for and how are they going with it so far?
GL:The concept of e-commerce had to be demonstrated and hence we chose to sell GSM Recharge cards. Since then Air Niugini are selling airline tickets and PNG Power also vend easipay using e-commerce.
Your company has started the esi-shop website, how has that been running in terms of sales and what have you learned from its usage?
GL:Sales have been better than expected. Given that purchase requires a credit card the market size currently in PNG is quite small, however as time and options grow it is only likely that more people will have access to credit and debit based Visa/Mastercards.
How can website developers like us or anyone for that matter go about setting up an e-commerce website?
GL:It is very early days yet. The full impact of e-commerce and security procedures is crucial. At present, we obviously look at adding products on esishop.com.pg. The ability to process and transact through the payment gateway should be available to anyone.
One of the issues that concerns me is that most people in PNG have eftpos bank cards and not credit cards, how do you think the banks should address this?
GL:There is nowhere in the world that accepts EFTPOS cards on the Internet so we’ll put that one to rest. As far as credit cards, it only takes a little bit of effort for people to fill in an application form at the bank to apply for the credit card. There are also debit cards available where you can deposit money and use it from there. In short, you must have a credit card to trade on the Internet. In other countries like Australia, it is very easy for the everyday citizen who has any measure of disposable income to obtain a credit card. It will become easier and easier to obtain a credit card. The whole PNG E-commerce industry will evolve. We’ll get there and we do see this as a long-term play taking 3-5 years at least.
We also did a post on our blog sometime ago about pre-paid e-commerce do you think we can see something like this in the future for PNG?
GL:We’ve only just started. Anything that has demand will certainly require a supplier. It comes down to people who are willing to put the time and effort into seeing these things through.
From where you are now with the esishop website and e-commerce capabilities, how do you see the future of e-commerce in PNG developing and who will be the important players in this?
GL:Our www.esishop.com.pg slogan says Shop Online, Anytime, Anywhere. The key players will be the banks who supply the credit cards and debit cards. Their role is to get the buyers online as soon as possible and to make it easy to do so. The other key players are suppliers. They need to get together with website developers and build websites that will be easy to use and to make their products and services easy to deliver across the Internet.
And lastly why should PNG embrace e-commerce?
GL: Because we have issues such as busy work schedules, remoteness of people, security concerns, delays in product delivery that can be solved by ecommerce. We also have products and services that the world needs to know about. Our suppliers need to start thinking with the Global Market in mind. When you’re on the Internet, it enables you to deal with customers not only in PNG but the rest of the world. It opens up the markets significantly and allows our country ultimately to prosper. If business in PNG can grow by supplying to the whole of the world, then it can only be good for PNG.
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13 comments
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May 3, 2007 at 5:26 pm
rodney itaki
Manu, thanks for this post.
I have one question and I know you are the wrong person to ask but if any bankers see this, they can help.
My question is: how is easy is it for the average income earner in PNG to get a credit card? That might prompt us to define “average income earner” in PNG.
I think Glynn made an important point of saying the e-commerce bussiness environment depends on bankers (issuing of credit cards etc) and suppliers.
May 3, 2007 at 5:32 pm
rodney itaki
OH, and how what percentage of the average income earner in PNG has an internet connection in their homes?
I think having easy access to internet (and be able to afford the service) will also determine e-commerce in PNG.
May 4, 2007 at 2:11 am
Shell
Manu great story very informative! I didn’t know of the existence of Esi Shop till i read your blog and I’ve promptly signed up for their service. However the only hurdle I can see is the accessibility of credit cards to the average Papua New Guinean , i only just recently acquired mine but that was after having to save a minimum of x (in the thousands) amount of kina before being eligible. Hopefully there’s a way around this. Even after all this I’m still not able to use my credit card online at certain sites to make purchases.
To Data Nets – great job! Keep up the good work & hopefully we’ll see this service expand and become more readily available to everyone everywhere.
May 4, 2007 at 4:55 am
Emmanuel
Thanks Shell and thanks Glynn for your time.
To get around the restriction on PNG issued credit cards and also the requirement for having a couple thousands in an account for you to get the credit card, when I was on holidays in Australia last year I opened up a normal savings account with ANZ in Brisbane. All I needed for ID was my passport and my PNG drivers licence.
I then applied for a Visa Debit Card on the Australian ANZ website and I have been advised that it will be issued to me within 5 working days. Once I get my card then I will be able to do e-commerce in PNG but using money that has been deposited into the Australian account.
The best thing about the Visa Debit Card is that it is still a debit card meaning that I am using money that I have and NOT being billed for things afterwards. The other benefit of getting it from Australia is that it allows you to get past the security restrictions that some sites have for PNG issued credit cards.
I know this is a complex, time consuming and relatively expensive way to go about it…but it works for me right now.
May 4, 2007 at 8:18 am
Rex
@Manu
I applied for a Visa Debit Card with westpac in POm. It took them a while but eventually I was issued one.
It makes shopping online easy and I was able to control my spendings too.
Cheers
May 4, 2007 at 11:25 am
Emmanuel
That’s the way Rex, cool. Have you had any problems with restrictions on any sites?
May 6, 2007 at 1:53 pm
Robert Weber
i’m excited.
well sourced.
over and out
May 7, 2007 at 6:41 am
Shell
Rex, have you tried using your card on Ebay?Does it work?
Thanks Manu looks like that would be the only alternative.
May 8, 2007 at 11:53 pm
Rex
@shell
It works well…….I’m able to purchase online.
Ebay, liquidation, etc……
So cool!!!
May 10, 2007 at 1:20 am
Darren
nice
August 6, 2008 at 3:03 am
ccholai
Great stuff… PNG E-Bay coming up soon!! hey btw…heard BSP Visa Cards out soon..
October 3, 2008 at 9:36 pm
Emmanuel
CCholai…..as you heard now it is here! BSP Visa Debit cards are now out for all to enjoy
October 19, 2008 at 2:41 am
Bank South Pacific Visa Debit Cards « the Masalai blog
[...] about e-commerce on several occasions and especially on PNG’s first initiative which is the EsiShop.com.pg site. As always the one major issue has been the fact that not allot of PNG’eans have credit [...]