Mobile phones to send cash

BARCELONA – Mobile communications operators and banks joined forces yesterday to make it easier and cheaper for hundreds of millions of immigrants and migrant workers to send money home by using their mobile phones.

The aim is to reduce the transaction costs of sending small amounts of cash to just a few per cent, from a current 24 per cent for amounts as small as $50. “Out of the 6.5 billion people on the planet, less than one billion have a bank account.The only way to sustainably serve these people is through mobile communications,” said emerging markets projects manager Ben Soppitt of the GSM Association, which groups the world’s mobile carriers.The idea is that people can load cash on their mobile, and order it to be sent to a mobile phone number in another country, where the recipient receives a message that money has arrived, making it as easy as sending a text message.”We believe that this coming together of the mobile and banking industry is a giant leap in mobile commerce,” said Sunil Bharti Mittal, chairman and managing director of fast-growing Indian operator Bharti Airtel.”It will revolutionise the money transfer industry with its advantages, such as reach, ease of use, and lower transaction costs,” he added.International remittances total more than $230 billion a year and are a major source of income for many developing countries, the GSM Association said.Nampa-Reuters”Out of the 6.5 billion people on the planet, less than one billion have a bank account.The only way to sustainably serve these people is through mobile communications,” said emerging markets projects manager Ben Soppitt of the GSM Association, which groups the world’s mobile carriers.The idea is that people can load cash on their mobile, and order it to be sent to a mobile phone number in another country, where the recipient receives a message that money has arrived, making it as easy as sending a text message.”We believe that this coming together of the mobile and banking industry is a giant leap in mobile commerce,” said Sunil Bharti Mittal, chairman and managing director of fast-growing Indian operator Bharti Airtel.”It will revolutionise the money transfer industry with its advantages, such as reach, ease of use, and lower transaction costs,” he added.International remittances total more than $230 billion a year and are a major source of income for many developing countries, the GSM Association said.Nampa-Reuters