News / National
Zimbabwe mobile money transfer service expected to grow
28 Oct 2011 at 05:12hrs | Views
GROWTH in the global mobile phone-based money transfer service is expected to reach over US$860 billion worth of transactions by next year.
Speaking at the just ended Marketers Association of Zimbabwe hosted convention in Victoria Falls, Kenyan renowned marketer, Mr Jeremiah Siage, said nearly 370 million people worldwide will be dependent on the service by that time.
"By 2012, there will be over 366 million mobile-payment users, conducting over 95 billion transactions annually and generating over US$ 860 billion worth of transactions," said Mr Siage. "By that time, the global remittance market would be worth US$ 502 billion. "Remittances sent home by migrants from developing countries will constitute 80 percent of the total remittance market. "There will be one billion mobile -banking users, conducting US$47 billion transactions annually and generating US$600 billion worth of financial transactions." He said Africa was already the leading user of the service due to its swift adoption by the local people and its continuous development by the individual service providers.
"There has been a paradigm shift in the area of communication whereby constant product development has removed language barriers.
"The service is available 24/7 and physical distance to and from markets is no longer a factor." Mobile money is the ability of cellphone users to transfer money from one subscriber to another. It also consists of subscribers withdrawing cash from appointed mobile money agents. For a subscriber to access this facility they have to register their SIM card with a company that provides this facility, and also loading the money into their account whilst the user needs to visit the nearest agent and deposit cash there in exchange for e-Float. This e-Float is like money that can be used to make payments or transfer to any other person and is also transferable to any person or merchant via encrypted SMS.
The receiver of the virtual cash can either use it for further transactions, buy airtime or cash-out from mobile money designated outlets. "Mobile technology has demonstrated what synergies can achieve. We must create synergies locally to go for the global market.
"It's time to for Africa to be the 'Mobile Continent'," said Mr Siage.
Speaking at the just ended Marketers Association of Zimbabwe hosted convention in Victoria Falls, Kenyan renowned marketer, Mr Jeremiah Siage, said nearly 370 million people worldwide will be dependent on the service by that time.
"By 2012, there will be over 366 million mobile-payment users, conducting over 95 billion transactions annually and generating over US$ 860 billion worth of transactions," said Mr Siage. "By that time, the global remittance market would be worth US$ 502 billion. "Remittances sent home by migrants from developing countries will constitute 80 percent of the total remittance market. "There will be one billion mobile -banking users, conducting US$47 billion transactions annually and generating US$600 billion worth of financial transactions." He said Africa was already the leading user of the service due to its swift adoption by the local people and its continuous development by the individual service providers.
"The service is available 24/7 and physical distance to and from markets is no longer a factor." Mobile money is the ability of cellphone users to transfer money from one subscriber to another. It also consists of subscribers withdrawing cash from appointed mobile money agents. For a subscriber to access this facility they have to register their SIM card with a company that provides this facility, and also loading the money into their account whilst the user needs to visit the nearest agent and deposit cash there in exchange for e-Float. This e-Float is like money that can be used to make payments or transfer to any other person and is also transferable to any person or merchant via encrypted SMS.
The receiver of the virtual cash can either use it for further transactions, buy airtime or cash-out from mobile money designated outlets. "Mobile technology has demonstrated what synergies can achieve. We must create synergies locally to go for the global market.
"It's time to for Africa to be the 'Mobile Continent'," said Mr Siage.
Source - TH
