Bridging the Digital Divide - Micropayments
 The GSMA's work in the area of micro-payments shows how such systems add significant value to the operators in terms of higher ARPU and lower churn, and to mobile users in terms of low transaction fees, micro pre pay top ups and greater access to financial services. The first stage in the work of the GSMA in the area of micropayments was a joint report from infoDev, and the International Finance Corporation (IFC). The paper investigates the application of mobile-enabled commerce (m-commerce) in developing markets. It aimed to identify the opportunities provided to mobile networks in offering an m-Commerce service, as well as establishing the drivers for successful implementation.
Some of the report's findings include:
- For users - an opportunity to become engaged in the formal banking sector, to facilitate and reduce the costs of remittances, and to enable financial transactions without the costs and risks associated with the use of cash, including theft and travel to pay in person;
- For banks - an increase in their customer reach, the opportunity to migrate customers upward in the use of banking services and the added cash float available to the bank;
- For networks - an increase in text messaging revenues, reduction in churn rates, greater appeal to the market and hence an increase in the uptake of mobile services;
For retailers - added business opportunities through the sale of prepaid account credits, facilitating purchasing by customers and the competitive advantage gained by having the facility available;
For micro-finance institutions - the ability to advance funds to remote areas and have regular repayments that do not significantly inconvenience the user;
For service industries and utilities - the ability to get payments electronically from a significant portion of the overall population without the need to establish franchised agents in remote locations.
 GSMA Press release...Download the report... (315kb PDF)
|
