How does mobile commerce help financial inclusion?

Wednesday Jun 29, 2011

Vast majority of people in the village do not have access to withdraw or deposit money easily. It is these people that have to be touched and given an access to financial services. Mobile phones today outnumber bank ATM machines and bank branches. It is one such eco-system that encompasses almost everyone today.

The eco-system established by mobile phone is all inclusive, distribution network created can become a point of service that can provide financial services and act like a bank branches. All the agents in the MNO network can become an easy access points that will offer financial services at a much lower cost. Looking at existing banking practices a mobile phone transaction is more than 70% lessexpensive than a banking transaction.

This enables systems to provide services to the BPL (Below Poverty Line) consumers without letting go of business profitability.

mComm Tutorial
What all applications and services can be enabled by a mobile commerce transaction system?

mCommerce services can be divided into the following categories: Prepaid Airtime Transactions Voucher-less airtime distribution Digital content retailing Peer-to-Peer airtime sharing Mobile wallet transactions Peer-to-Peer payments Retail payments Funds Transfers International remittances Bill payments Travel ticketing Movie/concert ticketing Government payments like taxes, tolls etc. Donations Mobile banking Branchless banking Loan disbursement and repayment Banking informational […]