By enabling subscribers to send and receive money using their wireless phones, mobile operators have the opportunity to bring local banking services to millions of people around the world. These services could also deliver operators a valuable new revenue stream. According to a new study from ABI Research, the market for mobile fund transfers will grow to a revenue opportunity of nearly US$8 billion for mobile operators by 2012, from just over US$10 million last year.
Mobile networks offer a number of advantages over existing fund transfer offerings, but most convincing is the high level of adoption and reach of wireless services both geographically and demographically.
"Mobile operators can tap into and extend long-standing international and national demand for fund transfers around the world by leveraging the networks and handset infrastructure they already have in place to revolutionize access to banking services," says Jonathan Collins, senior analyst at ABI Research.
However, mobile operators cannot do this alone. The requirement of a banking license to offer such services in most countries means that mobile operators need to partner with established banking institutions. Partnerships are encouraged by offering services institutions an effective way to reach new as well as existing customers. ABI Research believes that these partnerships, once forged between operators and the financial sector to target mobile fund transfer, will also provide a foundation for a host of additional joint offerings. Meanwhile, startups focused on delivering mobile fund transfers to mobile subscribers have also emerged to drive mobile fund transfer adoption.
While enabling national and even localized fund transfers delivers a good business case for operators, it is in the realm of international payments or remittances that the bulk of the market opportunity lies. Large sums already flow from workers who moved overseas but send payments back to family members and friends in their home countries. Targeting these transactions, a number of operators and international financial institutions are already offering or developing an international capability for mobile fund transfers. "
Posted to the site on 10th July 2007
Posted to: www.cellular-news.com/story/24848.php