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Wireless Media

Mobile Payments Update Developments in International Remittances but Major Volume Still in the Future

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Report Summary:

On 18 September 2012 Gemalto and MoneyGram, the second-largest international money transfer organization (MTO), announced a deal in which MoneyGram’s international funds transfer capability would be integrated with Gemalto’s LinqUs mobile service deployment platform. A week later Gemalto and Western Union, the largest MTO, announced a similar deal. Gemalto’s reputation in the world of digital security and its broad client base in the operator community would seem to make this very positive news for the growth of cross-border mobile remittances. However, integrating international remittances – which amounted to almost USD 500 billion last year – with mobile payment systems has proved elusive up to this point. Out of more than 2,000 international services included in the World Bank’s Remittance Prices Worldwide database (September 2011) only ten are mobile services. Non-technical obstacles including regulation, user conservatism, and pricing will only gradually be overcome.

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