In 2014, 94% of Cote d’Ivoire’s secondary school children paid their annual registration fees via mobile money. With more control and transparency over the process, lost funds through fraud and robbery declined significantly as a result.
The ubiquity of the mobile handset presents a significant opportunity to facilitate a digital payments system within emerging markets.
Bill payments can be made either from a mobile money account, or over-the-counter to a biller, via a mobile money platform, in exchange for services provided. Particularly for the underbanked, they are an important means to access essential utilities, such as water and electricity.
In Sri Lanka for example, using Dialog’s eZ cash service to pay an electricity bill considerably reduces both travel time and costs for rural customers.
A 2013 study on mobile water payments in Tanzania found that mobile payments were an effective tool for improvements in revenue collection and controlling governance-related losses.
According to recent statistics, bill payments represented 8.9% of the mobile money global product mix in December 2014, with an increase of 7.2 million transactions from the previous year, and an average of 0.3 mobile bill payments per month by active users.
The frequency of bill payments through a regularly recurring transaction has also improved active mobile money usage.
“In December 2014, transactions involving external companies using mobile money as a platform to receive and make payments drove the growth in mobile money globally, representing 24 per cent of the total value of all transactions processed in that month.”
At this year’s Mobile World Congress, in Barcelona, eServGlobal will be demonstrating an end-to-end mobile money solution integrated with an ATM, offering cash-in and cash out of a mobile wallet, domestic mobile money transfers and bill payment. Please come to hall 7, stand I61 for a full demonstration of these features.
Information source – GSMA 2014 State of the Industry: Mobile Financial Services for the Unbanked.