Tag Archives: Mobile Money

Mobile Banking Predicted to Grow 65% Annually in Latin America

Finance, Telecoms, , , ,

According to a recent report by Deloitte re-released by the Latin American Federation of Banks (Felaban), banking by mobile devices is predicted to grow up to 65% annually over the next two years. They also predict that by 2015, the total mobile banking platform will reach up to 140 million people on the continent. These are huge numbers, and if they’re correct, will help bolt Latin America to the forefront of mobile banking user adaption, and usage.

 

This isn’t the first study to make such a claim, with many believing that mobile money will have a major impact, transforming Latin America in the coming years. The region still has high numbers of both unbanked, and underbanked people, and access to mobile money devices has the potential to change how people in the region do business, especially in rural areas.  According to Guillermo Moreano, VP of Operations and Technology at the International Bank of Ecuador, this has “a great business potential for Latin American banks,” citing that traditional forms of banking, such as checks and large cash transactions will become a thing of the past.

 

Last year (2012) the penetration rate of mobile banking in the US was at 24.3%, with the age range of the likely user between 19-23. While this number puts them in the lead for now, it won’t be long until one of Latin America’s big mobile countries surpasses them. Brazil currently has the largest amount of mobile users on the continent at 200 million, followed closely by Mexico and Argentina, with 91 and 52 million respectively, according to Deloitte. With high cellular usage rates, and fast-growing smartphone adaption, converting mobile users into mobile bankers may happen sooner than later.

Brazilian Prepaid Mobile Accounts Get Top-Ups, Thanks to PayPal

Consumer Goods, , ,

Mobile MoneyBrazilian network operator Vivo will be making life easier for prepaid mobile account holders in the near future, as they announce a new top-up option, thanks to PayPal and Giesecke & Devrient (G&D). G&D will now provide the company with a mobile payment solution that will allow their prepaid account customers to top up their credit directly on their cellphone using PayPal.

G&D is also unrolling its SmartTrust Mobile Transaction Gateway, providing the necessary payment solution, which will ensure that all transactions are executed securely, alleviating concerns from the end user.

This new service will give mobile customers direct access to phone credit without the need to buy a card to recharge. This will help alleviate travel time, and make credit accessible from home, saving mobile users the hassle of only purchasing it during normal store business hours. The solution is compatible with any type of cellphone, as it’s based on USSD technology and will not require the end user to download any other type of application.

Mobile users will now be able to set up a PayPal account for these services directly on their mobile phone, taking hard currency and even bank accounts out of the equation. The new account details can also be modified to add or remove linked credit-card information whenever the user wants.

G&D will manage and host the backend servers for this new mobile payment solution in a secure data-processing center. The Mobile Transaction Gateway (MTG) via which all top-up and other mobile transactions are processed is based on the SmartTrust DP framework.

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MasterCard and Telefonica set up m-Payments Joint Venture in Brazil

High Tech, Telecoms, , , , , , ,

MasterCard and Telefonica have created a joint venture to offer mobile financial services for the 65 million Vivo customers in Brazil.

The partners will develop a mobile wallet service, enabling consumers to make payments via their mobile phones as well as transfer funds, pay bills and make online purchases. The service allows operations between banked and unbanked consumers and fosters the acceptance of mobile payments at locations that traditionally have only accepted cash transactions, such as taxis and delivery services, as well as direct sales such as door-to-door transactions.

The new company will operate independently with each shareholder holding 50 percent of the equity. The joint venture will be presented to competent authorities for approval.

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Digicel Outlines Plans for Mobile Money Service in Haiti

Telecoms, , ,

Pan-Caribbean mobile network operator, Digicel has outlined details of the initial phase of its mobile money service project in Haiti which will deliver a range of mobile financial capabilities to the people of the earthquake hit country.

With only 10% of the population having used a commercial bank pre-earthquake (according to USAID), the mobile money concept is guaranteed to take off in Haiti where mobile penetration stands at over 35% – up from a low 5% before Digicel’s launch in 2006.

Commencing in October, the pilot is being conducted in partnership with a large NGO running a cash-for-work program and one of the major banks operating Haiti. This pilot will see hundreds of users taking part in a 6 week trial to test cash in, cash out, airtime top up and person-to-person transfer services. Digicel and its banking partner have also been working closely with the Haitian central bank on the regulatory aspect of the project.

This latest rollout follows of the launch of the “Digicel Mobile Money” service in Fiji in July of this year.

Maarten Boute, Digicel Haiti CEO, comments; “Mobile money services offer a secure and convenient way of transferring and handling money. We have already seen their amazing impact in places like Kenya where according to a study by Edinburgh University, after just three years, 40% of the adult population now uses them and have seen their incomes rise between 5 and 30% as a result.

He continues; “As Haiti’s largest mobile provider and single largest private investor, Digicel is uniquely positioned to roll out mobile money services – not only because we have Haiti’s largest and most reliable network, but also thanks to the expertise we have gained during our mobile money services rollout in Fiji earlier this year. We are very excited about the huge impact these services can have on the lives of the Haitian people.”

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