An Afghan police officer gets his salary in a text message on his mobile phone. A Kenyan worker dials a few numbers to send money to his family. The rise of banking transactions through mobile phones is giving a whole new meaning to pocket money in parts of the developing world that lack banks or cash machines.
Mobile money applications are emerging as potent financial tools in rural and remote areas of the globe, allowing people with no bank accounts to get paid, send remittances or settle their bills. "One billion consumers in the world have a mobile phones but no access to a bank account" said Gavin Krugel, the director of mobile banking strategy at GSM Association, an industry group of 800 wireless operators. "We see it as very big opportunity," he said at the recently held Mobile World Congress in Barcelona, Spain, the industry's annual four-day event. Mobile banking began to emerge six years ago in the Philippines and South Africa, where 8.5 million and 4.5 million people, respectively, use such services.
Today, 40 million people worldwide use mobile money, and the industry is growing, according to the GSMA. In Afghanistan, the national police has been testing a service from mobile operator Roshan to pay its officers --a system that helps to limit corruption, the company said. "We are currently moving from a trial to a full launch in paying the Afghan national police," said Roshan's head of mobile commerce, Zahir Jhoja. Every month, police officers receive a text message in the language they prefer informing them they have received their salaries, Jhoja said. A voice message is also left on the phone "because a lot of them are illiterate and cannot read," he said. The officer can then go get his money from an authorized Roshan agent.
Mobile money applications are emerging as potent financial tools in rural and remote areas of the globe, allowing people with no bank accounts to get paid, send remittances or settle their bills. "One billion consumers in the world have a mobile phones but no access to a bank account" said Gavin Krugel, the director of mobile banking strategy at GSM Association, an industry group of 800 wireless operators. "We see it as very big opportunity," he said at the recently held Mobile World Congress in Barcelona, Spain, the industry's annual four-day event. Mobile banking began to emerge six years ago in the Philippines and South Africa, where 8.5 million and 4.5 million people, respectively, use such services.
Today, 40 million people worldwide use mobile money, and the industry is growing, according to the GSMA. In Afghanistan, the national police has been testing a service from mobile operator Roshan to pay its officers --a system that helps to limit corruption, the company said. "We are currently moving from a trial to a full launch in paying the Afghan national police," said Roshan's head of mobile commerce, Zahir Jhoja. Every month, police officers receive a text message in the language they prefer informing them they have received their salaries, Jhoja said. A voice message is also left on the phone "because a lot of them are illiterate and cannot read," he said. The officer can then go get his money from an authorized Roshan agent.
