Banks can expand business and hold off competition
through cross-border money-transfer servicessupported by mobile phones, according
to analyst firm Gartner.
By working in partnership with mobile operators, banks can build
new revenue streams through mobile phone-based international
payment services. This was a finding of a Gartner report entitled
Mobile Phone Money Transfer Services: Compliance is a Bank's Best
Friend.
A system where an international money transfer is initiated from
a mobile, with recipients receiving details of the payment and how
to access it by phone, could make small regular payments
cost-effective.
Gartner said the cross-border money-transfer market is dominated
by companies such as
Western Union however, mobile payments could change this.
Banks have an advantage in setting up cross border mobile
payments because they have a good understanding of international
financial regulations, said Christophe Uzureau, principal research
analyst at Gartner.
"A mobile phone money transfer service is about creating a
supportive channel, not a new payment system. Mobile telephones can
be used to leverage existing payment systems and enhance
information systems," he said.