This white paper focuses on the mobile money transfers and remittances segment, which breaks down into two main sub-segments.
Transformational banking is defined as extending banking services to customers who cannot be reached profitably with traditional branch-based financial services: typically these services exploit the ubiquity of the mobile phone and are led or fronted by MNOs often in conjunction with banks. Transformational banking is particularly applicable to reaching the unbanking population in developing countries and under-banked segments in developed nations.
These transformational banking services themselves break down into domestic transfers (within a country), sophisticated financial services (savings accounts and microinsurance, for example) and international transfers (usually migrant workers sending money home to friends and family).
The growth of person-to-person mobile money transfers, however, is not limited to developing countries. In developed markets, there is a need for quick, easy and convenient money transfers for a range of purposes which can be generally categorized as social purposes. Examples include splitting the cost of a meal in a restaurant, and also transferring money between friends and family, such as parents sending money to their student children at college. Using mobile devices removes the need to write or pay in checks with a visit to a bank branch, or to draw cash from an ATM. The process s faster and also more secure, avoiding the loss or misplacement of cash or checks.
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