Mpower Nov-Dec 10

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Corporation Bank in association with Tata Indicom, Indiasleading cellular service provider, and PayMate, Indias leadingwireless transactions platform provider, announced the launch ofGreen Money Transfer- a unique person-to-person mobile moneytransfer service, in early November 2009.

The transfer of funds via mobile is facilitated by PayMates

technology, Corporation Banks banking system and Tatas PCOand True Value Shop (TVS) network. Tata Indicom is the first Indianprivate telecom operator to enter into a partnership of this naturewherein a PCO/TVS is used as the initiationpoint for person-to-person money transfer.

The service enables any mobile phone userto send or receive money instantly using theirmobile phone to authorise the transfer. Toinitiate a transfer, the customer simply needsto visit their nearest Green registered TATAPCO or TVS and place a request for moneyremittance (Upto Rs. 5000) to any personacross the country. Similarly the recipient canalso collect the transferred amount by visitingthe nearest Green TATA PCO or TVS with atransaction authorization code received fromthe sender.

Speaking at the launch, Mr. Lloyd Mathias,Chief Marketing Officer, Tata TeleservicesLimited, said, This is a moment of pridefor us, as we have become the first privatetelecom operator to enter into such a uniquepartnership and bring forth this fantasticproposition for our customers. Green Money Transfer is an industry-first and enables anyone using a cell phone to transfer money ina safe and flexible environment. Being the leading operator in thePCO segment we wanted to leverage our strength and enable a

highly efficient money transferring service for the customers evenin remote areas and going forward we hope to extend more suchM-commerce solutions for our customers.

Green Money transfer service is primarily targeted at the un-banked population of the country by providing them a branchlessbanking service to send and receive money effortlessly. The serviceis secure and speedy as compared to other money transferring

services available for remote access areas at present.On the launch of the service, Shri J. M. Garg, Chair

Managing Director Corporation Bank said, This facility isproposed as an additional service to the rural masses whonow receive remittance in their Bank account instantaneouslydraw through Business Correspondents at their own place.

will enable the Bank to augment customer acquisition as welfacility has been launched on a pilot basis in Kerala whiclarge migrant population. On successful launch the facility w

spread to other areas.Speaking on the occasion, Mr. Ramesh Iy

Head-Enterprise Business, Tata Teleservice(Maharashtra) Limited said, Both the bankinand telecom sectors have seen frenetiactivity over the last couple of years.mobile screen offers a new medium to bato proliferate their services while openinga new and innovative revenue stream fortelecom operators.

Offers easy access to remittance services Innovative m-commerce service offeringflexibility and convenience for financialtransactions The Green Money Transfer service workacross all handsets

This also translates into an excellemicro banking solution to the end consum

especially in the rural areas - a vital step towards accelefinancial inclusion. It is a win-win partnership for the industthe economy at large. The mobile screen is slated to chanway people transact and we at Tata Indicom are happy to p

and pioneer the revolution.Speaking on the partnership, Ajay Adiseshann, MD & FouPayMate said, PayMate has always been at the fore-froninnovations in M-commerce. Having realized the gap inmarket for people who seek easy, quick and convenient meatransactions, with Green Money Transfer we offer a safe, rand secure system for transfer of funds especially for the un-b

ISSUE - DECEMBER 2009 l

...contd. on third page

Corporation Bank, TATA Indicom and PayMateLaunch Green Money Transfer in India

Mobile Money Transfer


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1. What are the benefits of leveraging theTata Indicom (telco) value chain to facilitateCorporation Banks P2P service GREEN?

A Telecom Service Provider is the backbonefor the success of Project Green, and is theEnabler for this project. In every segment of theproject, ranging from the sender to the receiverof the money, to the backend infrastructurerequired for communication between theconsumers and the banks, or the banks and theirbanking correspondents, telecommunicationconnectivity is a primary requirement. While wecannot rule out the importance of the financial

institutions and the technology partners, withoutthe telecom connectivity this project will not beable to succeed.

Also, TTML has a huge population of dealerswho could be easily converted as BankingCorrespondents for this project. These BankingCorrespondents are as critical to the success ofthis project as the telecom connectivity itself.2. What promotional activities have been planned for encouragingPCO-s/customers to sign up and adopt thisservice?

We have already enrolled some of ourDistributors (True Value Shoppes) for thisproject, and are looking at appointing close toabout 100 distributors in the next few months.TTML will be helping our distributors with thenecessary marketing support.3. Please describe the educational activities

planned to enable prospectives to understandthis service?

Our distributors, who are the touch pothe customers, have already been trainethe benefits of the project to the custCurrently, we have started an initial pilotselect areas in Maharashtra and Kerala, awill gradually be expanding to cover othof the country. We will be conductingspecific activities in the pilot areas, anbe increasing the marketing activities aexpand across locations.4. After Kerala, which are the regions where

you see good prospects for this service?In TTMLs area of operations, apar

Mumbai, other key cities of MaharashtrPune, Nagpur and Kolhapur, with a sigportion of migrant workers, are the citiwhere majority of the money transferexpected to happen to various parts ocountry.

5. How do you see the future of Mobile Money Transfer pan oin India?

Mobile Money Transfer or for thatMobile Banking or Mobile Commerce isbe the way of doing business, particularlbanking, going forward. As 3G gets roand the penetration of Smart Phones incmulti-fold, the mobile phone will becomee-wallet or mobile-wallet. Hence, wehuge potential for the mobile banking m

A Huge Potential for the Mobile Banking Market: RajanThe edit team spoke toDr Mukund Rajan , Managing Director, Tata Teleservices (Maharashtra) Limited

Dr Mukund Rajan, Managing Director, TTML

population in remote access areas echoing the sentiments and mandateof the Government and the Regulators. With over Rs. 600 billion (12.75

billion USD) being remitted across the country, this presents a greatopportunity for all of us to tap into and we are confident that the servicewill redefine the way financial services are approached.

Simple steps for person-to-person mobile money transfer:Customers can register for this service at a Green TATA PCO, TVS or

with Corporation Bank. Upon registration, they will receive an mPIN toenable them to authorise the transaction.

1. A sender in Mumbai goes to a Green Tata PCO or TVS and places a

request of transferring Rs. 5000 to his parents in Pune2. The sender hands over the cash to the Green Tata PCO

PCO or TVS triggers an IVR call to the sender3. The sender enters his mPIN to authorize the transaction aTransaction code on his mobile to be conveyed to the recipient

4. The recipient goes to the nearest registered Tata PCO orshares the transaction code.

5. The PCO or TVS triggers an IVR call to the receiver wher mPIN to verify the transaction

6. Once the verification is done the cash is handed over to

Green Money Transfer in India... contd. from front page

Our distributors, who are the touch points to the customers, have already been

trained on the benefits of the project to the customers. Currently, we have started

an initial pilot between select areas in Maharashtra and Kerala, and we will

gradually be expanding to cover other partsof the country.


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India is in the midst of a demographic transition. The demographictransition that India is going through will result in addition of millions ofyouth, who are potentially a bankable populationand present a unique opportunity for bankingsystem to expand their customer base. It hasbeen estimated that the population in the 15-24age group grew from around 175 million in 1995to 190 million in 2000 and 210 million in 2005,increasing by an average of 3.1 million a yearbetween 1995 and 2000 and 5 million between2000 and 2005. The age structure of a populationaffects a nations key socioeconomic issues.

The proportion of population in the working agegroup of 15-64 years will increase steadily from62.9% in 2006 to 68.4% in 2026. The youngergeneration is far more open to consumerloans, financial products like insurance, mutualfunds and wealth management and therebyoffers a much bigger revenue base for financial-service providers.

In addition to the demographic transition,other drivers of GenNext Banking are inadequatepenetration, GDP growth and availability ofinformation and communication technology. Theissue is how the banking system will gear up and tune itself with this newgeneration across the length and breadth of the country. As India is poisedto be a global power in the 21st century, GenNext banks will be a catalyticagent in making India a global power.

Indian banks have identified the growth potential of the GenNext and arealready providing schemes especially keeping in mind the requirementsand preferences of the younger generation. The GenNext banks would beoffering products and services right from birth till death. As the child grows,appropriate products and services would be offered at the right time. Duringinfancy, small health and life insurance services could be offered. Otherfeatures could include recurring deposit and fund transfer from parents tokids account. As the child reaches educational stage, educational loans,debit card and two-wheeler/scooter loans could be offered. After education,as the youth enters job, then products like housing loans, credit cards, etccould be offered. Equity and mutual fund products could be offered. Oncehe gets a job, savings, demat and e-broking accounts could all be offered.At later stages, the composition of investments in equity oriented schemeswould shift in favor of debt oriented as the age advances. For entrepreneurs,loans and insurance could be offered for entrepreneurial ventures. For

people in different professions, offering products suited to theirwould present a challenge and opportunity. If a loan is given

life insurance like that for house, educatiocar loans could be made available. Atof marriage, marriage loans could be oOnce, he becomes old, loans for refurbiof house etc, would be offered and thicontinues till funeral insurance products.the essential idea is that a relationship onat birth carries on till death and all theand services are made available under onEvery person will have a customized web

where they can simply select and availvarious products and services required by

The GenNext banking would thus notto attract the youth but to attract them atitself so that in future the bank canthe preferred source for other requirementhe growing customer. The saving accountyoungsters are intended to inculcate habthrift. They will have to be educated andeducation initiatives would be important.

Banks are also providing facilities likebanking, tele-banking etc, recognizing

the younger generation is much more tech-savvy and believetime and energy by using technology. Banks are also openingbranches for GenNext, which cater to all the aspects of bankyoung population. But, in my opinion, for GenNext banking to bstaff at all branches would have to be youth-oriented othernaturally not possible to reach the vast majority of our youth.

As the banking sector takes initiatives to cater to the evolvithe economy, we need to deliberate on several issues. Will thplayers be able to meet the required volume, number, density anof services? If not, would new players, such as MFIs, NBFCs,telecom companies and foreign players be authorized to perfoservices? What should be the delivery structure for the entiresystem for seamless delivery of all products under one roof? Smodel be based on universal banking, subsidiary or collaborativWhat should be the delivery model at grass root level? Should iof direct or indirect approach? Given the dimensions of businesa multichannel delivery system utilizing a combination of branccards and mobile services appears to be the most appropriate mo

What are the policy changes necessary to meet these challenge

Dr. K.C.Chakrabarty, Deputy Governor, RBI

Address by Dr. K.C.Chakrabarty , Deputy Governor, Reserve Bank of India at the Panel Discussion on GenNext Banking at the 4th International Finance Banking Conference organized by the Indian Merchants Chamber recently in Mumbai

GenNext Banking: Issues and Perspectives

...contd. on sixth pag


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Agents, key to banking theunbanked: Gates Foundation

It costs a bank in developing regions around US$1 to conduct a financialtransaction at a tellers window. More importantly, it costs the customerbetween US$1 and US$5 in travel expenses to reach the bank: Hardlya motivation for either party and certainly not for banks to expand theirservices away from the relatively wealthy city dwellers. To make bankingservices available to a much wider population in developing nations, BobChristen, director of financial services for the Poor Global Developmentprogram, Bill and Melinda Gates Foundation, believes that financialtransactions must be taken out of the banking halls and given to agentsspread across the country.

We have seen the success of this in Mexico were governmentpayments to poor families are now made using approved agents, he said.This program saw a 99 percent fall in customer costs with the time takento conduct a transaction dropping from over 6 hours to 30 minutes due tothe huge reduction in travel time. While this Mexican service does nottake advantage of mobile payment technology, Christen claims that mobile

money is an integral part of the solution to bring significantly lower costbanking to the 2.6 billion people that exist on less than US$2.5 per day. Icould see mobile money turbo-charging the current agent-based systembeing pioneered today. The initiative by the Gates Foundation to promotefinancial service to the unbanked has seen the GSMA receive a US$12.5million grant towards its Mobile Money for the Unbanked (MMU) program.The objective behind the MMU is to encourage the expansion of affordablefinancial services to people without bank accounts in developing nations.

Making mobile work for theworlds unbanked

Whether accessing cash in ruralcommunities, transferring fundsto family and friends, or makingdomestic payments for goods and

services; mobile money has theability to reach the unreachable turning banking for the unbanked from a political pipedrsocial reality, says Norman Frankel, CEO of Mi-Pay.

According to the United Nations, inclusive finance is onbest tools available to alleviate poverty and contribute todevelopment. It can help poor households meet basic neeas adequate housing, healthcare and education for their chand that it can tap into the entrepreneurial spirit of poorwhich is vital to eradicating poverty. The key to making thireality is by focusing first on PAYMENTS, not banking. Mostcustomers here have never experienced banking as such anactually need it in their normal lives. They simply want toreceive payments in a cheap, safe and effective manner.

In developing regions of the World, such as Africa,insufficient revenue from for banks to justify the capital exprolling branch networks out across large geographical areas.place, mobile initiated domestic financial services such as MZap and Saraf are already filling the vacuum. In fact, the cdemand for mobile payments is so great it is now leapthe West in terms of technology, applications and service r

Socit Gnrale to rapidlyinnovate and grow in China

Infosys Technologies Ltd. and Socit Gnrale announcsuccessful implementation of Finacle core banking, CRM,management and consumer e-banking solution at Socit Gn(China) Limited, the first French bank offering a widecorporate, private and retail banking services in China. With FSocit Gnrales customers in China will have the conveniInternet banking along with real-time access to account baand an expanded range of products and services online.

The state-of-the-art Finacle solution implemented acrobranches of Socit Gnrale (China) Limited has enabled thto embark on its ambitious retail growth and innovation agena highly scalable and flexible technology engine. With theSocit Gnrale (China) Limited is able to offer its cuswider range of banking products and services. A central reof customer data has enabled bank staff to see a single, 36view of the customer. Further, all channels of communic

the bank - Internet, mobile, ATM, branch - are integrated tocustomers more convenience.

PayPal: Smartphonestriggering mobile money

uptake in developed regionsThe uptake of smartphones by consumers

will act as an important trigger for mobilepayments services in developed countries,claims PayPal. Whereas SMS and WAP wereinitially promoted as suitable platforms forfinancial transactions, Eric Deprat, generalmanager for mobile at PayPal, now believes thelarge-screen capabilities of the latest smartphones will significantly boostthe widespread use of mobile transactions.

We have observed significant growth in the use of the mobile PayPalservice since we launched our iPhone application, said Deprat. Weexpect this usage to climb further. According to PayPal, mobile users indeveloped countries are much more inclined to use mobile banking servicesif there is a sophisticated user interface that provides a quick, easy and

satisfying experience. The number of downloads from the iPhone appstore of the PayPal app has been a huge success, claims Deprat. Wevebeen impressed with the response and very pleased with the result. Thecompany promised to invest more in the near-term to make its mobilemoney services more broadly available on handsets.

...contd. on sixth page

...contd. on sixth page


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The magnitude of global mobile banking is forecast to hit $202 billionby 2012, and 60 percent of that will emanate from the Asia Pacific region.By 2012, 364 million low-income, un-banked people will be able to usemobile financial services. Likewise, the number of people without a

bank account but with a mobile phone is estimated to grow from one to1.7 billion.This were some of the conclusion arrived at during the recently-

concluded Mobile Money Transfer (MMT) Asia Pacific (APAC) conferencein Manila, that brought in experts, providers and representatives of MMTpractitioners from all over the world.

MMT Conference chairman John Owens noted that MMT iare increasingly focusing on the importance of strategic partbetween banks and mobile money issuers that build mobileecosystems, that include the base of the economic pyramid.

Mobile phone banking in the Philippines started sometimeand has since expanded with blinding speed. Both Smart Philip(Smart) and Globe Telecommunications Co. (Globe) have since inprograms and systems for mobile banking. They have likewpartnered with bank and non-bank financial institutions to bring emoney (e-money) to the under-banked and un-banked.

Global mobile money seen to reach $202 billion in 2012

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facilitate growth and transition? What should be Business Model in termsof pricing, marketing, product development? Transparency in pricing isthe key in the context of the huge volumes involved. What should be theapproach to risk management framework? In view of the large volume,

products and customers involved and the exponential growth taking placein banking services, how risk management will evolve to mitigate theemerging risks? What are the institutions and supporting requirementsandchallenges in the Technology, Communication and Network Connectivity

which will enable seamless services in a secured and cost-environment? HR issues will assume prominence as the banksto assess the skill requirement for providing such services and accreate the workforce

It is important that all the banking products be made availableroof and provided in a seamless manner; otherwise, we wouldopportunity. I am sure that 21st century will be our century andsector will rise to these challenges and more.

GenNext Banking...contd. from fourth page

Initiatives such as Saraf Mobile, one of the worlds first mobile person-to-person, agent-based services, have already gone live in countries such asSudan with many other roll-outs planned across North Africa.

In Middle East, Northern Africa (MENA) and Eastern Europe, mobilepayments/banking has also taken off - albeit more slowly. Here, initialpayment led services will expand hugely to encompass all financialservices such as micro-finance, micro-insurance, pensions, savingsplans, etc; and will become a critical factor in the development of inboundtax collection and outbound government payments. MENA specificallylacks national payment switches to connect the various mobile/legacybanking services together so domestic operators and banks will need to

partner through the national bank who can then sponsor a ligregulated service to the local Government such as that alreadyin Pakistan.

In the US and Europe, the story is somewhat different.payments have to compete with many established channels anconsumers prefer to do domestic banking on their home PC.eager to promote new technology such as NFC, there is simplycommercial business model in place at present to make it viab

In many areas of the World, pre-pay value is becoming anpayment currency in its own right, with people settling smallinstantly transferring pre-pay balances between handsets.

Haragopal Mangipudi, Global Head- Finacle, Infosys TechnologiesLimited, said, We are delighted that Finacle has gone live at SocitGnrale (China) Limited and we are committed to supporting the bankachieve its objective of becoming the preferred retail banking servicesprovider in China. China is strategically important for us with sevenleading global banks operating in the country already powered by Finacle.

We look forward to continue partnering with Socit Gnrale on theirfuture innovation and growth plans.

According to Jackson Cheung, Chief Executive Officer, Socit Gnrale(China) Limited, The right technology backbone, with the scalability andflexibility to match our growth pace, is important for us at this junctureto achieve competitive edge in the Chinese retail and corporate bankingmarket. We are confident that our partnership with Finacle from Infosys

will help us to grow our business and provide our customersinnovative banking experience.

Socit Gnrale (China) Limited is now using Finaclemore innovative wealth management products and also plansthe solution to enhance its customer acquisition strategy. Asin banking transformation, Finacle has a global footprint

64 countries and has been acknowledged among the leaderscore banking solution space by top analysts including GartForrester. Finacle is also the winner of a series offor its innovation and implementation capabilities, the most notabeing The Banker Technology Award, The Asian Banker IT ImplAward and The Banking Technology Judges Special Award for Use of IT.

Socit Gnrale to rapidly innovate and grow... contd. from fifth page

Making mobile work for the worlds unbanked... contd. from fifth page


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PayMate, Indias leading mobile payments company has tied up with leadingUS based transaction service provider TSYS Acquiring Solutions to launchMobilePASS a smartphone-based payments application for the US market.

The MobilePASS application is ideal for on-the-go merchants such as taxidrivers, restaurants that deliver, electricians etc. The application will enablethese merchants to accept and process card payments anywhere simply using asmartphone and Bluetooth enabled card-reader.

MobilePASS offers credit and debit card processing, voids, returns andreporting in a quick and intuitive way, enabling merchants to process a saleregardless of where their business takes them. Cardholder data is protected inthe event that the smartphone is lost or stolen, because data is not stored on thedevice. As a result, merchants can focus on servicing customers and growingtheir business without being hindered by security concerns.

TSYS Acquiring Solutions has changed the landscape of the paymentsindustry with the introduction of MobilePASS, said Bob Philbin, president of TSYS

Acquiring Solutions. With this application, TSYS has taken its trusted reputationfor security and convenience to a whole new level. The future of payments is

here and MobilePASS is just one of our solutions designed to meetthe consumer.

MobilePASS is a huge step forward for mobile payments soluDhruv Singh, executive vice president for PayMate. Its clear that Mis a revolutionary product tailored for the demands of the growingwireless merchant base. When coupled with the PayMate Pro 200, amagnetic-stripe reader and thermal printer, MobilePASS allows merqualify for card-present interchange rates. The entire data transmissionfrom card-reader to smartphone onwards is secured by PA-DSS 1PayMate the first Indian company to achieve the certification for a mapplication. The MobilePASS application enables merchants to acceptat the location and time of service in a convenient and safe mannertheir customers of the utmost security of the transaction process.

We are proud to partner with TSYS to provide them cuttingbased acquiring solutions, said Ajay Adiseshann, PayMates Fou

Managing Director. MobilePASS is a paradigm shift in the wamerchants accept payments.

PayMate and TSYS MobilePASS Take Business Beyond Brick-and-Morta Revolutionary mobile payment technology meets demands of the 21st century merchant

The M-commerce sector is poised for growth in the Indian market owingto its intrinsic link to the booming mobile telephony sector in the region.

While M-Commerce is in its nascent stages, it is slated to boom over the nextfew years with growing sophistication and lower prices of mobile handsets.

A report by the Internet and Mobile Association of India (http://www.iamai.in) titled Mobile Value Added Services in India projects that themobile VAS sector (of which M-commerce is a part) is expected to growfrom Rs.5,780Cr (June 2008) to RS 16,520Cr in June 2010 as a directbenefit of the growth in mobile telephony.

Currently, users of M-commerce perform a wide variety of transactionsvia mobile from paying for utility bill & movie tickets to shopping & holidays.While the uptake of mobile payments is still gathering pace, services thatare more accessible and easier to use are finding favor.

PayMate recently commissioned The Nielsen Company to conduct ausage and attitude study to evaluate the M-commerce market in India.

The researchwas conductedwith a samplesize of 1012persons rangingacross varieddemographicsand regionsof India. Theresearch resultshighlighted some

striking facts oncurrent usagepatterns amongM - c o m m e r c eusers, share ofwallet among M-commerce players,and barriers toentry for non users of M- commerce.

The research shows 64% of m-payment users surveyed had refor an m-commerce service within the prior 6 months. This pointsin consumer confidence in m-commerce since the RBI issued itsin Sept-Oct 2008.

The research also showed that 52% of the users utilize mobilin order to pay their utility bills especially mobile billspurchasing movie tickets and making monthly payments. Howeresearch highlighted lack of awareness & information about theM-commerce as the main barrier to up-take of this technology.

Findings of the research also indicate that PayMate is leading theon brand perception elements such as trust and Customer servicthe Internet emerges as the most appropriate platform for generatingabout M-commerce among active and dormant users.

With the RBIs support for M-banking and the release of iton mobile banking transactions (Sept-Oct 2008), banks have spedroll out of m-payment products with banks such as Standard Charand IDBI Bank launching their services in the early part of 200

Status of Mobile Payments in India

M-VAS expected to grow to Rs.16000 crJune 2010 PayMate is No. 1 in mobile commerceaccording to Nielsen survey Customers are using m-commerce to pay forbills, mobile recharge and movie & flight tick


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Contact us :PayMate India Pvt Ltd. 111, A Wing, Sundervilla, S.V. Road, Santacruz (West), Mumbai - 400054 Tel: 022-26616170 Email: mpower@pay Copyright PayMate : All rights reserved. All names and logos are copyright of the reprective owners.Disclaimer : All names and logos are copyright of the respective owners.

1. Mpower is an Industry Newsletter for private circulation to opinion leaders within the consumer payment systems industry only.2. We do not accept any responsibility or liability for the accuracy or contents of the newsletter. These are reports based on public informatio

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After 62 years of independence, the informal economy abounds in80 percent of India, and half the households below poverty lines(BPL) have still had no access of any kind to financial services.This state of affairs is likely to continue unless something

radically different is done. A good starting point is the need at the bottom ofthe pyramid for financial services such as mobile money transfer (MMT).

Clearly while all wage earners carry mobiles,not all wage earners will have a bank account oreven want to step sideways through the doorsof a bank branch. The mobile is the proverbialsilver bullet. Firstly, its reach is ubiquitous andprovides for a low cost point of service (PoS)

for all forms of inclusive banking - be it no frillsbanking, credit, insurance, pensions, NREGAsocial payments etc. Secondly. It reduces thedistance between the depositor /beneficiary andservice point to a few a few kilometers at themost. Thirdly, it costs far less to use a mobile(less than a rupee) as the medium rather thansmartcard, ATM, internet, telephone or bankbranch. Fourthly, every NREGA beneficiary, witha job card (or in time UID, which will also act asa single point KYC) - linked to a no frills accountand mobile number will ensure that the entire39, 000 crores earmarked for NREGS will reachthe 40 million households in fair & full value -and plug once and for all misappropriations inwelfare transfer payments. Lastly the repudiation risk on mobile is 1/10thof what it is on the internet, and probably manytimes lesser than for other instruments!

So if the citizen cant come to a Bank, then theBank will have to go to the citizen!

The financial system along with the whole rangeof PCOs, pansaris, kiranawalas, fair price shops(as recently mooted by an RBI Working Group)and an army of business agents along with the

communications infrastructure and solution providers have to cto build an end to end mobile financial service ecosystem for thunserved and excluded. As a result of this collaboration, efficiefacilitating systems will emerge to allow small value person-to-petransfers to be made across the Indian heartland, bringing in ovof time accountability and a larger part of transactions under telectronic channel ambit. This could be the starting point for d

of the rapid mass electronic payment bacAs Dr Raghuram G Rajan in his report Con Financial Sector Reform (CSFR) termNational Electronic Financial Inclusion S(NEFIS) an electronic backbone that liunbanked to a bank account, and bank a

to a mobile - With millions of outletssuch kind out cash-in / cash-out paymentransaction cost would drop to a few pai

This is exactly what PayMate has donea 2 years pioneering effort Corporation Balaunched the first pan-India scalable mobilefinancial inclusion service called GreenTransfer with the help of Tata Indicom pits network of more than 500,000 PCOs.this service is targeted for mobile Moneybetween migrant workers working in Mand Tier 1 cities sending money backfamilies in Karnataka & Kerala. This ismodel where both sender and beneficiary

no frills accounts at PCOs, and then are able to remit monThe service is powered by PayMate abrand is owned by Paymate. A possiblestep is to run the system with only oparties needing a no frills account tthe transfer. In due course, for the sebe viable and mass, perhaps it willevolve to a cash-in and cash-out serveither end, with no need for a mandatoaccount - perhaps a UID which interoas a quasi Bank account!

Financial Inclusion and the Mobile Phone

Probir Roy, Co-founder and Director, Paymate

As a result of this collaboration, efficient payment facilitating systems will emerge

to allow small value person-to-person(P2P) transfers to be made across the

Indian heartland, bringing in over a period of time accountability and a larger part of transactions under the formal electronic

channel ambit.

Documents

Mpower Nov-Dec 10