Mobile Payment Magazine

Mobile Payment Strategies Report: Opportunities & Markets 2011-2015

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Mobile Payment ReportA new study from Juniper Research has determined that the total value of mobile payments for digital and physical goods, money transfers and NFC (Near Field Communications) transactions will reach $670bn by 2015, up from $240bn this year. These forecasts represent the gross merchandise value of all purchases or the value of money being transferred.

The new Mobile Payment Strategies report revealed that all segments will exhibit 2x to 3x growth over the next five years. This growth will be driven by the rapid adoption of mobile ticketing, NFC contactless payments, physical goods purchases and money transfers as people in both developed and developing countries use their devices for everyday transactions. [Read more…]

Western Union Provides Mobile Money to M-PESA Subscribers in Kenya

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Western Union now provides services for consumers to send money directly to the mobile “wallets” of Safaricom M-PESA subscribers in Kenya from 45 countries and territories. According to the company, it’s the first service of its kind in the world.

The expansion of the service to more than 80,000 Western Union Agent locations worldwide follows the successful debut of the offering from Western Union Agent locations and the Western Union website in the U.K.

The service rides on Western Union’s worldwide network and trusted global “hub” for processing cross-border remittances. It also builds on the unprecedented success of M-PESA, a domestic mobile money transfer service in Kenya offered by Safaricom that has attracted more than 13.5 million customers since its launch in 2007.

“We are pleased to extend our service with Safaricom, and we look forward to adding additional functionality for M-PESA users in the near future,” said David Yates, Executive Vice President and President, Business Development and Innovation, Western Union.

The service will allow people to visit one of more than 80,000 Western Union Agent locations in 45 countries and territories across the globe, including the U.S., Canada, Italy and the U.K., and send funds directly to the mobile “wallets” of M-PESA’s 13.5 million subscribers. Funds are delivered generally in minutes.

The service will likely benefit thousands of Kenyans working abroad. According to the Central Bank of Kenya, Kenyans living outside their home country sent US$642 million home in 2010—up from the US$609 million sent home in 2009.

Safaricom CEO Bob Collymore said, “Our customers are very proud of the revolutionary M-PESA service, and this partnership sees us pushing new boundaries to continue to keep Kenya at the forefront of the mobile world. Through this partnership, our customers and their friends and families will benefit from affordable, faster and more convenient international remittances, and the money is available to use straightaway for any M-PESA transaction, or can be withdrawn as cash at any of our 24,000 Safaricom agents.”

Western Union offers the Mobile Money Transfer Service in the Philippines with Smart Communications and Globe Telecom; in Malaysia with Maxis; and in Canada with EnStream. Western Union also has agreements with other mobile operators and banks to introduce the service in the future.

Source: Business Wire

MoneyGram, Iris Wireless and Globe Telecom to Provide Mobile Phone Load Service in Philippines

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MoneyGram, Iris Wireless and Globe Telecom Partner to Provide Mobile Top-Up to Philippines

U.S. consumers can purchase airtime credits for loved ones in the Philippines at any MoneyGram ExpressPayment agent location

MoneyGram International and Iris Wireless announced an agreement to provide global prepaid mobile top-up services that will make it easier for Filipinos living in the United States to stay connected with friends and family in the Philippines.

Per the agreement, MoneyGram will provide load service for U.S. consumers who want to re-load the cell phone minutes of individuals in the Philippines who use Iris Wireless’ partner Globe Telecom as their service provider. MoneyGram is a leader in the payment services industry, and Iris Wireless is a leading provider of messaging services that is connected to more than 850 network operators in 200 countries.

“It also helps Globe extend our reloading channels beyond the traditional sales network.”

International mobile top-up, a complementary service to MoneyGram’s global money transfer business, gives U.S. consumers another way to support those living or traveling abroad by purchasing airtime credits on their behalf. MoneyGram will offer this service through its network of ExpressPayment® retail agents – 35,000 in the United States – including Albertsons LLC, CVS/pharmacy and Walmart.

“MoneyGram’s alliance with Iris Wireless allows our customers to not only pay bills and send money to loved ones; but now they can also help out their friends and family in the Philippines by providing instant credit on Globe Telecom mobile phones,” said Greg Waltz, vice president and general manager of Global Payments at MoneyGram International.

“As demand continues to grow for international prepaid top-up services, Iris Wireless is excited about partnering with MoneyGram and Globe Telecom to provide international airtime minutes home to friends and family members in the Philippines,” said Peter Rinfret, CEO of Iris Wireless.

Unlike in the U.S., where most consumers have contracts for monthly service with wireless carriers, prepaid billing is the standard for most wireless consumers around the world who replenish minutes as they use them.

“As a mobile phone service provider Globe Telecom keeps people connected. This collaboration for international top-up provides us an opportunity to give millions of Filipinos in the U.S. a different way to stay connected to friends and family back home,” said Ferdinand De la Cruz, head of Consumer Sales at Globe Telecom. “It also helps Globe extend our reloading channels beyond the traditional sales network.”

U.S. customers can visit any MoneyGram agent location to purchase airtime credits for family and friends in the Philippines and load credits in various denominations in USD. The cell phone user will receive a text message that their phone has been topped up for a specific amount.

Source: Business Wire

Western Union Partners with Etisalat to Provide International Mobile Money Transfers

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Western Union and Etisalat Group, a mobile phone company in Asia, the Middle East and Africa, will introduce Western Union Mobile Money Transfer service in the 18 countries where Etisalat operates.

Once agreements are signed between Western Union and Etisalat’s mobile network operators and the service is introduced, it will enable Etisalat’s subscribers to send and receive Western Union money transfer transactions using their mobile “wallets,” or accounts tied to their mobile phones. Subscribers who initiate transactions from their mobile phones would be able to send funds to a receiver for cash payout at more than 400,000 Western Union Agent locations in 200 countries and territories. In addition, Etisalat subscribers would be able to send funds to other selected mobile subscribers who have mobile wallets.

“Our research shows that many of our customers want to send and receive money via electronic channels like the mobile phone,” said Khalid Fellahi, Senior Vice President of Electronic Channels, Western Union. “This alliance with Etisalat will offer the company’s extensive subscriber base a convenient service they can use anywhere, anytime.”

Etisalat subscribers who receive a Western Union money transfer in their mobile wallets would be able to use the funds to pay bills, top up airtime, send money domestically or internationally, or withdraw cash at a cash-out agent or any participating ATM.

Commenting on the alliance, Essa Al-Haddad, Etisalat’s Group Chief Marketing Officer, said: “Etisalat’s association with Western Union is a substantiation of our relentless commitment to increase the reach of our customers by offering innovative services. This strategic alliance will help us leverage each other’s experience and strengths – including our strong base of subscribers and award-winning customer service and Western Union’s expertise in moving money around the globe and their well-known brand – to enable customers to send and receive money using their mobile phones.”

Rashed Alabbar, Etisalat’s Director of Mobile Commerce, said, “This agreement with Western Union is part of Etisalat’s broader mobile commerce strategy to offer innovative and cost-effective mobile payment applications to our 135 million mobile customers across our operations in 18 countries, including the UAE. Etisalat has been a leader in providing innovative mCommerce services in the UAE, and this association will enable us to extend the reach of our services across the globe.”

In 2010, Etisalat Group closed the year by reaching 135 million customers, and 2% revenue growth over 2009.

Western Union offers the Mobile Money Transfer Service in the Philippines with Smart Communications and Globe Telecom; in Kenya with Safaricom; in Malaysia with Maxis; and in Canada with EnStream. In addition, consumers can now visit one of more than 80,000 Western Union Agent locations in 48 countries to send money directly to a mobile wallet in select countries. Western Union also has agreements with other mobile operators and banks to introduce the service in the future.

Source: Business Wire

Utiba Launches Mobile Remittance Initiative

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Utiba Pte., a provider of  mobile financial transaction software, has launched a new initiative targeting the international mobile remittances market, offering a neutral corridor routing and currency exchange clearinghouse for mobile and traditional money remittances.

The goal of the Singapore-based company, is to create the leading mobile to mobile remittance clearinghouse in the world; its services include corridor routing, transaction settlement, and foreign currency exchange, serving global telecommunications carriers, money transfer operators, and financial service providers.

Traditionally, official remittance services are tethered to brick and mortar establishments and their higher cost structures. The limited geographic footprint and higher fee structure of these services force many of the least economically developed strata of society to use unofficial remittance channels.

However, with the mobile phone having reached near ubiquity worldwide — global penetration is above 70% and growing — there is a new means of delivering financial services to the so called “bottom of the pyramid.”

Successful commercial mobile commerce and mobile money services in Asia and Africa, approximately 30% built on the Utiba mobile financial transaction platform, have proven the viability of the mobile phone for delivering financial services. Remittances, international and domestic, constitute an important financial flow to the least developed nations and populations of the world.

The sum of official and unofficial international remittances in 2008 was estimated by the World Bank at $800 billion, with approximately half going through unofficial channels. Unofficial channels, like the trust based Hawala system, typically are used for transactions of lower value and greater frequency. Using the mobile network, remittance service providers will have a greater reach and lower cost structure, which will enable them to compete with unofficial channels.

Justin Ho, Co-CEO of Utiba, commented on the launch, “Our U:Hub remittance platform has been pioneering mobile remittances since 2007 when it facilitated the world’s first mobile to mobile international remittance transaction between Globe Telecom in the Philippines and Maxis in Malaysia, both of whom use the Utiba platform. We look forward to bringing mobile remittance capabilities to all of our 32 global customers and more. Creating this new initiative is a natural extension of our vision of empowering everyone to make mobile payments.”

Clients — mobile network operators, governments, banks, financial institutions, money transfer operators, and other global financial value added service companies — will receive the back office management, superior fraud controls, platform intelligence, and credit/risk management and settlement capabilities of the Utiba U:Hub platform, in addition to the real time neutral and efficient corridor routing and settlement services that are core to the service. The U:Hub platform on which the service is based was certified as part of Western Union’s Mobile Vendor Program in 2009 and currently handles more than $100 million in transactions per month.

via Utiba, Leading Mobile Financial Transaction Platform Provider, Announces International Remittance Clearinghouse Service.