Mobile money - A payment industry revolution impacting marketing and distribution
“Until now, banking is one of the few industries in the world that hasn't yet been reinvented by Silicon Valley,” said Steve Streit, founder and CEO of Green Dot.
Mobile money services are sweeping across all continents. With early successes recorded in Asia, Latin America and Africa back in 2010, mobile money services are breaking out in developed countries in a northbound wave. Entering the market as pure players, retailers or Telco operators, few of them hail from the traditional financial services industry. But all of them compete fiercely to provide enhanced customer experience in transaction services - with growing success. Is it time for providers of savings, credit and risk coverage products to consider mobile money service providers as new distribution partners?
First launched in Africa, Asia and Latin America back in 2008, mobile money gained popularity with a service that allowed end users to safe keep their cash miles away from the nearest bank branch. In rural areas for instance, farmers and traders were able to dispose of their cash receipts in short order, storing their daily earnings using their mobile phone. To do so, they could exchange coins and banknotes for electronic money at a corner shop, a grocery store or a gas station down the road. The benefit? Keeping your earnings safe from theft, fire or flooding, or more prosaically from insistent family and relatives.
Inside magazine issue 8, April 2015
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