When it comes to mobile money, the hype is on these days. There are more and more mobile money services in an increasing number of countries. Success is highly dependent on many factors, including: reach, reliability, user retention, ease of use, the availability of agents, number of customers, geography, mobile infrastructure and landscape, technology used, language, cost, and banking and telco regulations. Here, we hear from Bill Barhydt, CEO of m-Via, the company behind the new mobile banking service Boom. Boom allows people in the U.S., Mexico, Haiti, and Guatemala to create bank accounts, and send and access money via a basic mobile phone.
While Barhydt did not disclose numbers of Boom users, transactions, and total amount of transactions since the service formally launched in November 2011, we do learn more about how Boom works across the Americas.
What is Boom?
Boom taps into a market of remittances sent from the U.S. to Mexico, Haiti, and Guatemala. Traditionally, remittances - payments from diaspora back to the home country - are often made via wire transfer, check cashing, or payday loan services, all of which incur additional fees for the sender. Boom enables people in the U.S. to send any increment of money via a mobile phone. “To my knowledge, it’s the first cross-border mobile banking service in the U.S,” Barhydt says. “We’re replacing this cash-based world with a bank-based world, and the right way to do this is via mobile phones.”
Barhydt says that Boom addresses a number of problems associated with remittances currently: It lowers the cost of sending money between immigrants and their families, and it improves their safety by reducing the risks of handling cash. It also creates new commerce capabilities, as users can receive payment for signing up others for the service.
