mobile financial services
Posted by KatrinVerclas on Oct 25, 2008
This article, in a slightly revised version, was published by Orascom's TALK Magazine, Fall 2008.
There has been much talk of late about mobile financial services as a way to lift millions of people worldwide out of poverty. A recent article in The Guardian called mobile banking in developing countries “potentially revolutionary.” The advent of mobile financial services promises to bring many more poor people into an economic mainstream where safer and less costly financial services (such as person-to-person payments and remittances) are delivered over the cell phone. But is this promise anywhere near reality?
Transferring money via mobile phones can save days of travel for workers in cities who send money home to families in rural villages. Mobile payments are also often cheaper and more secure than relying on informal brokers or carrying cash personally, and they have the potential to change markets by making small business-to-business transactions immediate and more reliable.
