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

M-PESA Wins “Mobile Money for the Unbanked” Award

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Safaricom’s M-PESA has won the Mobile Money for the Unbanked Award at this year’s Global Mobile Awards 2011 which is being held in Barcelona, Spain between February 14th and 17th.

The M-PESA service was launched in March 2007. As of the end of 2010, the service had over 13.5 million customers countrywide. More than 400 organizations acceppt Bill Payment via M-PESA. The service does not require users to have a bank account; an important aspect in Kenya, where millions of people do not have a bank account. With M-PESA, account holders can buy electronic funds at an M-PESA agent and send the electronic value to any other mobile phone user in the country, who can then redeem it for conventional cash at any M-PESA agent. The awards are part of the annual Mobile World Congress which brings together players in the global telecoms market and is organized by the GSMA (Global System for Mobile Communications Association).

The “Mobile Money for the Unbanked” award category recognizes innovative, sustainable, pioneering mobile money services around the world that bring low-cost financial services, through mobile, within the reach of low income groups. The award recognizes the mobile money service that has had the most significant impact on unbanked customers in developing markets over the last year.

The win extends a five times winning streak by Safaricom M-PESA at the GSMA conference in over a three year period, and is a fitting recognition of its leadership in Mobile Money services.

Safaricom CEO Bob Collymore exalted in the win and said it was a validation of ongoing work to expand the M-PESA service in line with meeting the needs of the Kenyan customer.

“I am delighted and congratulate the M-PESA team. This shows that we are leading the evolution of mobile money from simple transfer to a total mobile commerce solution,” he said.

The judges said in their citation: “The success story continues. This solution is enhanced further with the addition of new features and territories. It is winning ground in a way seldom seen in the mobile industry and is a true and sustained success story.”

This years entry, put together jointly with Vodafone, covered M-PESA in Kenya, Tanzania, South Africa, M-Paisa in Afghanistan, India and Fiji, and Vodafone Money Transfer in Qatar, bringing together the strengths and benefits of the service to the firm’s customers across the group.,

The GSMA, which organizes the awards, represents the interests of the worldwide mobile communications industry. Spanning 219 countries, the GSMA unites nearly 800 of the world’s mobile operators, as well as more than 200 companies in the broader mobile ecosystem, including handset makers, software companies, equipment providers, Internet companies, and media and entertainment organizations.

Since the launch of M-PESA in just over 3 years, M-PESA has bagged a total of 12 international awards in its contribution to offering financial inclusion to the un-banked in Kenya.

Source: Safaricom