Mobile Payment Gaining Popularity in Emerging Countries

In emerging countries, mobile payment has seen widespread deployment. Often, people in these regions, especially in rural areas are much closer to a mobile phone than a bank branch. For this reason, these areas are sometimes called "unbanked" or "underbanked" markets.

Some banks and operators offer a service known as the ATM SIM, an innovation that allows mobile phones to act like virtual cash machines. Users can also securely add credit card accounts to their SIM, check balances and payment deadlines, send money to their families, transfer money, make payments, and more -- all without having to enter a bank branch. These transactions are safe, as all account details are kept on the SIM (which is the same technology as a chip banking card) and all information sent to and from the bank is encrypted. The money is therefore transferred safely on the network and also removes the need for users or retailers to carry around large sums of cash which is often a security risk in developing countries.

Users in underbanked areas are also making the most of the mobile connection to make remote payments. This includes bill payments, prepaid mobile and utility account top-up, microfinance lending as well as loyalty schemes and customer care services. These types of payment are based on a standard SIM card and communicate using secure SMS meaning they will work with any mobile phone on any network.

Category:

Science & Technology

Tags:

• mobile payment
• unbanked
• underbanked
• Gemalto
• JustAskGemalto
• SMS
• ATM
• technology